How Does Freight Forwarding Work in Australia?
Freight forwarding is the process of coordinating the movement of goods from one place to another. For international shipments, it can involve freight arrangements, documentation, customs requirements and shipment tracking.
Understanding how these steps fit together makes international shipping easier to plan.
What Does a Freight Forwarder Do?
A freight forwarder coordinates different parts of a shipment on behalf of a business. They may work with carriers and other parties involved in transporting cargo.
The process usually looks like this:
| Step | What Happens |
|---|---|
| Shipment Planning | Cargo, origin, destination and requirements are considered. |
| Freight Booking | Air or sea freight arrangements are made. |
| Documentation | Required shipping information and documents are organised. |
| Customs | Applicable customs requirements are managed. |
| Transportation | Cargo moves through the agreed route. |
| Tracking | Shipment progress can be monitored where tracking is available. |
Air Freight vs Sea Freight
| Air Freight | Sea Freight |
|---|---|
| Cargo is transported by air. | Cargo is transported by sea. |
| Suitable when faster transportation is important. | Commonly used for larger cargo movements. |
| Generally used for time-sensitive shipments. | Includes LCL and FCL freight options. |
What About Customs Clearance?
For international shipments, customs requirements are an important part of the process. Documentation and other requirements need to be addressed before goods can move through the relevant customs process.
In Australia, businesses may use a licensed customs broker to assist with customs clearance and related requirements.
Why Is Shipment Tracking Important?
International freight can pass through several stages before reaching its destination. Tracking provides visibility into where a shipment is within the process and can make it easier for businesses to plan around its movement.
Key Things to Consider
Before arranging international freight, businesses should consider:
- What type of cargo is being shipped?
- Where is it travelling from and to?
- Is air or sea freight more appropriate?
- What customs requirements apply?
- What documentation is required?
- How will the shipment be tracked?
Frequently Asked Questions (FAQS)
How does freight forwarding work in Australia?
It involves coordinating freight, documentation, customs requirements and other stages involved in moving goods.
What is the difference between air and sea freight?
Air freight transports cargo by air, while sea freight transports cargo by sea. The appropriate option depends on the shipment requirements.
Does freight forwarding include customs clearance?
Customs clearance can form part of an international freight arrangement and may involve a licensed customs broker.
Why is a freight forwarder used?
A freight forwarder helps coordinate the different parties and processes involved in moving goods, particularly for international shipments.