Comprehend The Role Performed By Freight Forwarders In India

Freight forwarding correspondingly recognized as logistics organization stands solely responsible for handling the transportation of the goods from original port to the destination. It itself does not perform such activities but organizes and suggests the most suitable combination of vehicle movement to transport the shipments. As soon as the shipper hands over the goods to a logistic company and till the time it reaches its destination, the organization takes account for everything which is happening. 

Freight forwarders in India collaborate with various carriers and get the customers a good quote for their shipments and consignments.  The team recklessly works round the clock to ensure the optimization in terms of goods transportation, money invested as well as time utilized. Joining hands with a logistic company will ensure that you are going into the safe hands. Not only you can transport the shipments under the best deal but also can enjoy the minimal hassles during the entire process. A good freight forwarder helps to reach the shipment via – ocean, air, and road. Door to door delivery and the tracking of the consignment throughout the period are some of the additional features of good freight forwarders in India.

Here is the summary of all the copious tasks performed via Freight forwarders in India –

• Taking the accountability of transportation of the shipments and good from one point to another.
• Freight forwarders in India are generally responsible for preparing the shipments to transport, tracking the consignments, taking care of all the export documents, warehousing the goods, negotiating freight charges with carriers, and involving in the procedure of insurance claims.
• Also actively participates in suggesting the shipper to transport their goods with time and cost efficiency.
• While choosing for a freight forwarder in the country, you can check the reviews, consider talking to the organization and understand the best fit for your consignment. Usually a good logistic company will eagerly perform all the above-mentioned roles to furthermore provide an outstanding customer experience. 

TRADE FINANCING BY FREIGHT FORWARDERS – 

Trade finances emphasizes on the contract between the buyer and the seller present overseas or just next to the city. On one hand, where the seller expects some prepayment on the items sold to the buyer, on the other hand, the buyer also expects some document of confirmation regarding the goods that have been shipped. Trade financing takes place when the importer’s bank presents a letter to the exporter claiming that once the goods are received then the whole amount would be credited to their account. In this scenario, freight forwarders do play an essential role to the exporters here.

While an exporter is still waiting for his company, a freight forwarder can suggest him to take the loan with just good export turnover for 3 years or so. Also, the organization, does proper research on the buyer and exposes the risk limit on the goods that have been sent to them. Exporter is enriched will all the essential credit details of the buyer at the end of the day. So the decision can be made based upon the credit details and the risk exposure available.

Also, freight forwarders help with the trade financing through many banking organizations, where credit is provided in simple steps so that neither buyer nor exporter need to pay from their pockets or investment money to fulfil the need of buying or producing the goods until the profit is credited to their account. Freight forwarders in India also handle the import export trade finance.The process not only allows the exporter to boost their business even when they are waiting for the payment but also lets the importer make the long repayment sessions. It all happens with the trading finance wherein they are credited with some amount to keep their business going.

Here is some of the useful information for import export trade finance–

• You are eligible for the trading finance if you are in the export or import business for over 3 years. Also, there is a minimum amount of turnover set to avail the credit amount.
• The rate of interest on the credit amount remains on the lower side and can be expected between 4- 8% per year.
• The credit processing time lies within 48 hours and the fee is also very nominal and may rang from 0.50- 0.70% of the total value.
• Finances are mostly available for up till 90% of the total shipment/consignment value.

So, these was some of the useful information on import export trade finance. Once can reach out to several freight forwarders in India and get all their work done at one place without any further hassles. You may find a few good logistics companies over which you can entrust your shipments.