Forwarding – what is it? Types of domestic and international forwarding

In this article, we will show you what freight forwarding really is – with a minimum of jargon and lots of specifics, just the way we like it.

We will explain who a freight forwarder is, what role they play in the entire supply chain, and how domestic freight forwarding differs from international freight forwarding. To top it off, we will guide you through all the most important types of freight forwarding – from road to intermodal.

What is freight forwarding? – a practical definition

Forwarding and forwarding services are nothing more than the safe and timely organisation of the transport of goods – from point A to point B, in accordance with the customer’s requirements.

Sounds simple? On paper, maybe, but in practice it is a whole process – from accepting the order, through selecting the means of transport, to delivering the goods to their destination.

Unlike transport itself, freight forwarding is not just about moving goods. It involves planning, coordinating and managing the entire shipment so that it arrives on time, in good condition and with all the necessary documents.

Freight forwarding vs logistics – key differences

Although these terms are often lumped together, freight forwarding and logistics are actually two different worlds. How can you tell them apart?

• Freight forwarding focuses mainly on organising the safe transport of goods – i.e. selecting the route, means of transport, completing formalities and supervising the entire process.
• Logistics, on the other hand, is a broader concept – it includes not only transport and its planning, but also inventory management, warehousing, production planning and customer service.

In simple terms, freight forwarding is an element of logistics. It is an important part of logistics, but it focuses on a specific and specialised aspect – the organisation of transport.

What does a freight forwarder do? What are the responsibilities and duties of a freight forwarder?

A freight forwarder is a person (or company) who is responsible for organising the transport of goods. Freight forwarding services involve acting as an intermediary between the customer and the carrier – ensuring that the goods arrive where they need to be. On time and without complications.

The main tasks of a freight forwarder include accepting freight orders, selecting the appropriate means of transport, coordinating loading and unloading, as well as handling documents and customs formalities.

In summary: a good freight forwarder does not only accept freight forwarding orders. They are someone who can react quickly, manage chaos and make the right decisions – even when things do not go as planned.

Types of freight forwarding

Forwarding has many names. Depending on the type of transport, range of operation or size of the load, we can distinguish several types of forwarding.

Each of them has its own specific characteristics – and we will now guide you through the most important ones.

International forwarding

International freight forwarding is nothing more than organising the transport of cargo between countries, regardless of whether it is within the European Union or beyond its borders. It requires the freight forwarder to be familiar not only with transport procedures, but also with customs regulations, freight forwarding documents and the standards applicable in different countries.

In practice, this means that forwarding companies must ensure that the entire delivery process complies with the regulations of both the sender’s and the recipient’s country. There are additional responsibilities, such as preparing customs documents, tracking changes in regulations, and sometimes even resolving issues arising from language or cultural differences.

International freight forwarding is not just the transport of goods, but the entire process of organising transport on routes crossing several countries. This is why it is so important to choose the right means of transport, the experience of the freight forwarder and their ability to react during the execution of the order.

Domestic freight forwarding

Domestic freight forwarding, as the name suggests, involves organising the transport of goods within a single country. Although it may seem simpler than international freight forwarding, it still requires a good knowledge of the transport market and regulations.

As part of domestic freight forwarding, freight forwarders accept freight orders, plan routes, select the best means of transport and coordinate the process of transporting goods from the sender to the recipient. This often includes the storage of shipments if the delivery date requires a ‘delay’ or consolidation of goods.

A huge advantage of domestic freight forwarding is that there is no need for customs clearance and fewer documents are required, which translates into shorter delivery times and lower operating costs. Nevertheless, all the work performed by the freight forwarder must still be perfectly planned.

Road freight forwarding

Road freight forwarding is the most common form of transport of goods, both domestically and internationally. It involves organising transport using wheeled vehicles, from small vans to semi-trailers and truck combinations.

Why is road freight forwarding so popular? Because it allows goods to be delivered door-to-door, often without the need for reloading. It also facilitates quick response to changes. The freight forwarder can monitor the shipment on an ongoing basis and maintain contact with the driver, which greatly facilitates the management of the entire transport process.

On the other hand, there are also limitations. Road transport is prone to traffic jams, truck bans, checks and restrictions related to drivers’ working hours. Added to this are issues related to weight, load capacity and cargo insurance.

Full truckload shipping

Full truckload (FTL) shipping refers to a situation where the entire vehicle – usually a truck or a truck with a trailer – is dedicated to a single customer and transports a single type of cargo from point A to point B. There are no additional loads or transhipments along the way – everything goes straight to the recipient.

This solution:

• shortens delivery times (because the route is set for only one shipment),
• reduces the risk of damage to goods (no transhipments),
• provides greater control over the transport process.

Would you like to learn more about FTL shipping? Read the article: FTL (Full Truckload) transport – what is it and how does it work? >>>

Less than truckload shipping

Less than truckload (LTL) shipping is an option for those who have smaller quantities of goods to send – quantities that do not fill the entire loading space of a vehicle. In this case, the goods of several customers are combined into one shipment.

This is a more economical solution, but it comes with a few challenges:

• delivery times may be longer because the driver has to make multiple loading/unloading stops,
• goods are often reloaded, which increases the risk of damage,
• the entire process requires precise organisation – from order acceptance, through consolidation of goods, to their distribution at their destinations.

Groupage is the bread and butter of many freight forwarding companies that specialise in comprehensive management of this type of shipment, especially in e-commerce and the FMCG sector. Groupage shipping is the ideal option when you want to send goods more cheaply, even at the cost of a few extra days on the road.

Want to learn more about groupage transport? Read the article: LTL (Less than Truckload) Transport – what is it and how does it work? >>>

Rail freight

Rail freight forwarding is a form of transport used mainly for the transport of large quantities of cargo over longer distances, both domestically and internationally. It is particularly well suited for bulk goods such as coal, metal ores, grain, fuels and chemical raw materials. Rail has long been considered one of the most economical and environmentally friendly forms of transport.

Thanks to the high load capacity of wagons and regular connections, transport by rail can be cheaper than road transport, especially when dealing with heavy or bulky shipments. In addition, the impact of rail on the environment is significantly lower, which is important for companies committed to sustainable development.

However, it should be remembered that rail transport has its limitations – it requires access to transhipment terminals, which often means that road transport must be provided for the first and last legs of the journey. In such cases, intermodal freight forwarding, which combines different modes of transport in a single order, is a good solution.

Air freight forwarding

If time is money, then air freight is the definition of time. It is the fastest way to deliver goods, especially on intercontinental routes, where every hour counts. Although expensive, this form of freight forwarding has its irreplaceable place in the global supply chain.

It is most often used to transport:

• high-value goods (e.g. electronics, jewellery),
• express shipments,
• cargo requiring special conditions, such as vaccines or pharmaceutical products.

Organising air freight requires not only excellent logistics, but also perfect knowledge of documentation, customs regulations and coordination with airports.

Sea freight

Sea freight services are the queen of global transport. This is how the vast majority of international cargo is transported – containers with electronics, clothing, car parts or food. Although not the fastest, it is extremely cost-effective for large quantities of goods.

Its advantages include:

• low unit costs for large volumes,
• the ability to transport almost any type of cargo – from general cargo to containers and bulk cargo,
• accessibility of virtually every port in the world.

When choosing sea freight, you also need to be prepared for its ‘disadvantages’. These include: long delivery times, dependence on sailing schedules and weather conditions.

Intermodal freight forwarding

Intermodal freight forwarding involves organising transport using at least two modes of transport, but with a single loading unit, usually a container. This means that the goods are not reloaded when changing modes of transport. Fewer transhipments = less risk of damage.

An example? A container loaded at the customer’s warehouse is loaded onto a truck, then onto a train, and finally onto a car again – all within a single shipping order.

This solution:

• reduces total costs by the cost of transhipment,
• improves cargo safety.

In combined transport, intermodal freight forwarding is ideal for international transport (in Europe and Asia), where rail and port networks are well integrated.

Multimodal freight forwarding

Similar to intermodal transport, but with one key difference: in multimodal transport, the cargo can be transhipped and its form (e.g. pallet, container, crate) can change. However, the entire process is still managed by a single freight forwarder or logistics operator, which greatly facilitates coordination.

Multimodal freight forwarding (mixed freight forwarding) is flexible and allows the means of transport to be adapted to each stage of the route – train, ship, car, plane – depending on availability and conditions.

This solution is particularly popular in global transport, where the selection of the appropriate means of transport at each stage is crucial.

Summary

As you can see, freight forwarding services are more than meets the eye. It is the entire process of organising the transport of goods – from accepting the order and selecting the appropriate means of transport, through the organisation of transport and selection of the route, to completing the documentation (i.e. forwarding contract, consignment note, etc.). This also includes monitoring the shipment during the execution of the order.

A freight forwarder is not only a coordinator, but often also an advisor who has to find the most efficient route for each shipment.

There are many types of freight forwarding on the market. The basic division of freight forwarding is: domestic (within one country), international (across multiple countries), road, rail, air, sea, as well as intermodal and groupage. Each has its own application, and the choice of the right solution depends on the specifics of the order, the type of goods, the deadline and the budget.

Regardless of whether you operate locally or ship goods to the other side of the world, good freight forwarding is essential for transport services to function. After all, it is not just about transport, but about ensuring the efficient flow of goods throughout the supply chain.

Frequently asked questions (FAQ)

What is branch forwarding?

Branch forwarding is based on a single branch of transport – e.g. only road, only rail, only sea, etc. This type of forwarding service is characterised by the fact that the entire process of transporting goods is carried out using a single mode of transport, without mixing different forms of transport.

Single mode transport works best when the distance, infrastructure availability and type of cargo allow for the use of a single form of transport, without the need for transhipment or combining additional means of transport.

What is a forwarding contract?

A forwarding contract is a formal agreement between the customer (e.g. a trading company) and the forwarder or forwarding company. Its purpose is to commission the organisation of cargo transport – i.e. to ensure that the goods are delivered from point A to point B in the agreed manner.

A forwarding contract usually specifies:

• the type and quantity of goods,
• the date and place of delivery,
• the selection of appropriate means of transport,
• the freight forwarder’s obligations regarding documents, insurance and customs clearance,
• the financial terms of the cooperation.