The Freight Forwarding Process
by Jaime Araneta on Apr 03, 2025
Forwarding, whether through air or sea, can be quite intimidating. What’s important to remember is that items sent through a forwarding arrangement are automatically considered as a ‘commercial’ shipment. This means that there are many charges and documents associated with forwarding but we have simplified the process into 7 main parts.
1. Trucking and Pick-Up
The first step in the forwarding process is trucking and pick-up of the items. One common misconception is that the trucking team would assist with the loading of items, but it is important to note that the responsibility of the loading of the items onto the truck belongs to the sender of the goods. Manpower is not included in the trucking service and any misunderstanding during this step would lead to delays in the loading schedule. It is also important to check that the address of pick-up needs to be well equipped to cater to the size of the pick-up truck.
2. Origin Clearance and Processing
Origin Clearance and Processing is where your compliance documents come into play. In this step, the shipment is cleared through customs and checked if the items that are being shipped out are of export quality. Documents such as your FDA Certificates (for food, cosmetics, etc.) and a Phytosanitary Certificate (for raw materials) are checked at this step, so make sure all of the necessary documents are prepared before the items are picked up. It is also important to present your Export License during this step where it serves as a “passport” for your shipment to exit the country.
3. Origin Shipping and Carrier Charges
This step is relatively straightforward and simple. Shipping lines, carriers, and/or forwarders usually have handling fees for the use of their manpower and equipment that need to be settled before the shipment leaves.
4. Freight Charges
Freight charges cover the transportation of your shipment from the port of loading/origin to the port of unloading/destination. This is where you decide to send items via Less-than-Container Load (LCL) or Full-Container Load (FCL) and between via air or via sea. There may be additional charges aside from the usual freight charge such as a peak season charge or fees to send to certain regions. It is also important to check what type of freight you will need to book. Frozen items would need to use a temperature-controlled or a reefer container. Cargo with flammable items and liquid items such as alcohol would need to have their Material Safety Data Sheet (MSDS) inspected to see if a Dangerous Goods container would need to be booked.
5. Destination Shipping and Carrier Charges
Similar to the origin shipping and carrier charges, this is a straightforward payment that covers the handling and use of equipment from shipping lines, carriers, and/or forwarders.
6. Destination Clearance and Processing
Similar to the origin clearance and processing, compliance is important in this step. Your items need to be compliant with the country of destination. An Import License is also usually required for the shipment (similar to a VISA) to be accepted into the country of destination.
