transport & freight forwarding

8/6/2019 Transport & Freight Forwarding

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TRANSPORTATION

BROKERS ANDFREIGHT FORWARDERS


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Transportation Brokers

Transportation brokers are companies that provideservices to both shippers and carriers by arranging and

coordinating the transportation of products.

They charge a fee to do so, which usually is taken as a

percentage of the revenue collected by the broker from

the shipper. The broker in turn pays the carrier.


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WHO NEEDS BROKERS ?

Shippers with minimal or no Logistics strength canuse brokers to :

Negotiate rates

Arrange oversees shipments

Broker may assume some of the transportationfunctions LIKE

Things the shipper may not be able to do due to

resource constraints.

Does not replace the transportation Dept of thecompany


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Freight Forwarders

Freight forwarders purchase transport services from

various carriers.

May not own the equipment themselves.

Many successful air freight forwarders typically purchase

and operate their own equipment, rather than relying onother air carriers.

Freight forwarders consolidate small shipments from a

number of shippers into large shipments moving into a

certain region at a lower rate.

Consolidation----Efficiency---Lower Cost compared to

going Directly to carriers.

Larger volumes --- Faster and comprehensive services.


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BROKER AND FREIGHT - FORWARDER

FORWARDER: SHIPPER TO

CARRIER AND CARRIER TO

SHIPPER

PRIMARY LIABILITY TO

SHIPPER FOR LOSS , DAMAGE

AND DELIVERY

BROKER: NEITHER

SHIPPER

NOR CARRIER

USUALLY NOT LIABLE FOR

LOSS,DAMAGE


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1.Terms of Sale FOB Shipping Point, FREIGHT COLLECT

Title passes to

buyer

Freight charges

paid by buyer

Seller Buyer

Buyer pays freight

charges

Buyer bears freight

charges

Buyer owns goods in

transit

Buyer files claims(if any)


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2.Terms of Sale FOB Shipping Point, FREIGHTALLOWED

Title passes to buyer

Freight charges

paid by seller

SellerBuyer

Seller pays freight charges

Seller bears freight charges

Buyer owns goods in transit



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3.Terms of Sale FOB Shipping Point, FREIGHT PREPAID

AND CHARGEDBACK

Title passes to

buyer

Seller Buyer

Seller pays freight charges


Buyer owns goods in transit


Freight charges paid by seller, then collected from

buyer by adding amount to invoice.


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4.Terms of Sale FOBDestination, FREIGHT COLLECT

Title passes to

buyer

SellerB

uyer

Buyer pays freight charges

Buyer bears freight charges

Seller owns goods in transit

Seller files claims(if any)

Freight charges paid by buyer


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5.Terms of Sale FOBDestination, FREIGHT PREPAID

Title passes to

buyer

Freight charges paid by

seller

Seller Buyer

Seller pays freight

charges Seller bears freight

charges

Seller owns goods intransit



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6.Terms of Sale FOBDestination, FREIGHT COLLECT

ANDALLOWED

Title passes to

buyer

Seller Buyer

Buyer pays freight charges


Seller owns goods in transit


Freight charges paid by buyer, then charged to seller

by deducting amount from invoice.

transport & freight forwarding

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