Vertical Financials
Importing & Logistics

Freight Forwarder

Definition

A company that arranges the shipping of your goods from the supplier to your warehouse, booking space with carriers and coordinating paperwork, customs and delivery.

Forwarder invoices are often the largest piece of landed cost after the product itself. Each one should be tied to a specific shipment so freight can be assigned to the right units.

Many forwarders also act as customs brokers. Watch for: forwarder invoices that arrive months after the goods were sold, which leaves early units understated in cost unless freight is estimated upfront.

Example

Your forwarder books a 40-foot container from Shenzhen, handles the bill of lading, coordinates with your customs broker and arranges trucking to your 3PL.

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