Freight basically refers to goods which are transported in bulk through aircraft, ships, trains or trucks. Freight is different from shipping. Freight refers to a large amount of goods that are transported from source place to the destination place for commercial and trade purposes. Shipment can be commercial and non-commercial transfer of goods from one place to another. Freight Forwarding is the process of transportation of goods from the supplier to the buyer via airways, waterways, roadways or railways. This process was first recognized in the year 1948 in Canada where the first Canadian International Freight Forwarders Association (CIFFA) was formed. This Association was formed particularly to coordinate and regulate the freight forwarding process and make sure that goods are transported in a timely manner throughout the world.
Freight Forwarding is based on the principle of cost-effective and efficient transfer of goods in good conditions all throughout the travel. It also includes proper management of the necessary logistics which include that products are shipped on time and the quality of goods does not decrease. The aim of freight forwarding experts is a successful shipment of products with the right tools at the destination points which will result in expanding global market. These experts are required to have complete knowledge of customs and regulations, negotiating tariffs and should be fluent in the shipments procedures via land, sea or air.
If you wish to start your own Freight Forwarding business in India, you need to have a legal entity which can be a company in any form (Individual, partnership, Pvt. Ltd or LLP, etc.) Secondly, you need to have contacts with exporters and importers who will be your primary clients. It is also mandatory for you to register yourself with shipping lines as a freight forwarder.