Forwarder

Summary of Forwarder

A person or firm employed by a shipper of merchandise to book passage for the goods, prepare documents, and generally coordinate the shipping transaction. Ocean freight forwarders are regulated under General Order IV of the Federal Maritime Commission; domestic surface forwarders are subject to Part IV of the Interstate Commerce Act; airfreight forwarders are licensed by the Civil Aeronautics Board.

(Main Author: William J. Miller)

Forwarder in International Trade

Meaning of Forwarder, according to the Dictionary of International Trade (Global Negotiator): A person or company that arranges transportation, usually on behalf of the party contracting for main carriage. Many forwarders provide additional services, such as assistance with country specific documentary requirements, insurance, storage, and even customs clearance. Some forwarders also act as carriers (air freight consolidators or NVOOCs). Typically, forwarders obtain brokerage commission income from the carriers they select. This minimizes the fees that they charge to clients, and makes using forwarders cost-competitive. Some countries require that forwarders obtain a license, al least to be eligible for brokerage income. Also called freight forwarder.