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Michael Berman

Guide to Ocean Freight Forwarders

Ocean forwarders can ease the trip by sea


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Using ocean freight forwarders can eliminate many headaches when you're shipping container loads of cargo overseas. They can ease the pain of dealing with customs laws in each country and book your cargo on a reliable vessel.

Ocean forwarders or ocean freight brokers often specialize in dealing with specific regions or countries, keeping up with changes in customs laws, port fees and other obstacles that may greet your cargo when it reaches its destination.

Among the key functions ocean forwarders perform are:

1. Ocean forwarders book your cargo.
2. Complete documentation for export. 
3. Arrange for cargo insurance.
4. Advise on import laws and regulations.
5. Advise you on packaging, marking, and labeling.
6. Arrange for products to be packed and containerized.
7. Export clearance.


Action Steps
The best contacts and resources to help you get it done

Ocean carriers act as ocean freight forwarders


Many of the major ship lines can handle all of the duties of ocean freight forwarding and specialize in dealing with various countries and ports.

I recommend: Contact the carriers directly and see what ocean forwarding  services they provide.  For example Atlantic Container Lines (ACL) provides all of the services necessary if you're shipping  to Europe. For worldwide ocean forwarding service, including to Europe, the Far East, the Middle East , South America and South Africa, check out Evergreen. Orient Overseas Containerline (OOCL) serves the Far East and Middle Eastern countries, and Hanjin serves Central and Eastern Europe, the Far East and the Mediterranean.

Use an independent ocean freight broker or forwarder


There are tons of qualified freight forwarders that specialize in shipping goods by sea.

I recommend: The National Customs Brokers and Forwarders Association of America provides a listing of all of its member throughout the U.S., all of which have to maintain high standards to retain their memberships. A few if the larger forwarders include The American Companies, Blue Water, and Diversified Freight Logistics.

Become familiar with the forwarder's operation


Know what tools your freight forwarder is using to book and track your cargo. Ask him how he books cargo and what transportation companies he uses. If shipments are containerized, can he offer you less-than-containerload (LCL) service, where you share space in a container with another shipper?

I recommend: Freight forwarding services may use research tools such as The Port Import Export Reporting Service (PIERS). They may also utilize links to individual ship line tracking services, such as those offered by Atlantic Container Lines and American President Lines.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Make sure the freight forwarder you use is licensed by the Federal Maritime Commission.
  • Ask for credit references, and check with carriers to see if the forwarder is financially stable and pays his bills on time.
  • How large is the forwarder's organization? Does he have overseas offices that can represent you when the cargo arrives?
  • Check to see if the forwarder has Electronic Data Interchange (EDI) and other capabilities to handle documentation and other procedures.
  • Is the forwarder large enough to provide everything you need including warehouse space and sufficient staff to handle high volume?
  • The forwarder should also have adequate errors and omissions insurance, in case there's a problem with documentation when your cargo hits its port of destination.
  • Make sure you use a forwarder that will take the time to explain everything to you before you hire him.

The official source of Ocean Freight Forwarders is
the Ocean Freight Forwarders page at Business.com

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 Related Resources from Business.com Back to top 
 Recommended Solution Providers Back to top 

The NCBFAA is the premier organization of custom brokers and freight forwarders in the U.S. Their website has a searchable directory of all of their members and explains what you should expect from an ocean freight forwarder.


 Best Sites to Learn MoreBack to top 

This U.S. Department of Agriculture website outlines the duties of an ocean freight forwarder.

This is another guide I wrote explaining what you should expect from freight forwarders and customs brokers.


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