What is Freight Forwarding?
Freight forwarding is the coordination and arrangement of the transportation of goods from the exporter to the importer, using a network of carriers, customs agents, and logistics providers. A freight forwarder acts as an intermediary - they do not move the cargo themselves, but they orchestrate every party that does.
What does a freight forwarder do?
- Receives the export enquiry from the shipper (exporter or importer)
- Obtains quotes from multiple ocean carriers, airlines, or truckers
- Presents a consolidated quote to the client with margin baked in
- Handles export documentation: Commercial Invoice, Packing List, BL, COO, Form 13
- Books cargo space with the carrier
- Arranges inland transport from factory to port / port to warehouse
- Files export shipping bills or import bills of entry with customs
- Tracks the shipment and sends updates to the client
- Raises GST-compliant invoices and collects payment
Types of freight forwarding companies in India
NVOCC
Non-Vessel Operating Common Carrier. Issues own House BLs, takes on carrier liability, consolidates LCL cargo.
CHA
Customs House Agent. Licensed to file customs documents. Often combined with freight forwarding.
Air Freight Forwarder
Specialises in air cargo. Manages AWBs, airline bookings, and express courier services.
IATA Agent
International Air Transport Association accredited agent. Authorised to issue air waybills on behalf of airlines.
Run your freight forwarding business on FreightSetu
FreightSetu is purpose-built freight forwarding software for Indian forwarders - covering quoting, shipment tracking, GST invoicing, and CRM in one platform.
Start free - no credit card required →