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Previously, it was relatively straight forward to define the role of the freight forwarding community. Traditionally, it involved bringing together all the elements of international transport and distribution and arranging the most suitable space (depending on speed, cost, reliability and security) for the clients’ cargo. The forwarder was also responsible for processing all paperwork, such as customs and letters of credit.

This role has changed significantly.  One of the principal catalysts for change was the entry of the global express delivery and courier companies (also known as integrated carriers) into the freight forwarding market in the 1980’s.  The fundamental difference between a traditional freight forwarding company and an Integrator (DHL, Fedex, UPS etc) is that a forwarder provides pickup and delivery services but relies on independent carriers to transport the cargo.  The integrated carrier also perform pickup and delivery services but use their own vehicles and planes to transport the cargo (forwarders continue to shop around with multiple airlines to ensure they obtain the most competitive rates for customers).

The integrators offered a range of additional services, such as pick-up and delivery, as well as being relatively cheap and reliable.  The effect on the freight  market was to greatly increase customers’ expectations, as a single company was now able to deal with all aspects of the collection and delivery of consignments.  The “traditional” freight forwarders have therefore had to adapt and develop specialist and high value added services (a trend not exclusive to this industry).

Today,a freight forwarders activities include the following functions:

• To act on the customers’ behalf to procure the most suitable transport and shipping services. 
•  To undertake the arrangement of the routing and choice of mode for the customer, together with any ancillary service such as customs clearance or packing.  This level of involvement introduces a higher level of expertise, which the shipper may not always be able to provide.
•  Offering stand-alone ancillary services such as warehousing, customs clearance, packing and port agency.