Freight forwarding companies usually have a separate location for consolidation of goods and cargo. It might also be used to prepare import items coming via ship for distribution and to store export items coming from different companies in one container. We are a Rotterdam-based forwarding company in operation since Our repertoire of services includes containers, break bulk, Ro-Ro cargo shipping services and more.
Drop us an email at sales cargoshippinginternal. Previous Next. View Larger Image. In this post we will discuss the key differences between these two transportation services. Value-Added Services Forwarders use their network of service providers to offer you all services required to transport goods from origin to destination.
Several types of logistics companies have evolved to meet demand, some specializing in one phase of the supply chains while others do more. Often the lack of seamlessness results in disjointed efforts that end in delays, extra handling, and confusion. The essential strategy for a shipper is to ensure the products reach the right destination, undamaged, and on time at the lowest cost.
There are several types of operations in the field of freight movement. Some play only a single role while others handle several functions. For example:. What are freight companies? They concentrate mostly on cargo movement from Point A to Point B. Although limited in services provided, truckers are considered freight companies since the shipper hires them merely to pick up and deliver.
What are freight forwarders? Both domestically and internationally, they are in the business of finding the best and least expensive methods for moving products. Other essential functions include documentation, customs clearance, duty negotiation, and consolidation. What are freight carriers? They are companies that generate revenue by moving products around the country and the globe.
These include:. However, a party does not always have to actually perform the carriage in order to qualify as a carrier. Why is this distinction so important? An important legal consequence for the difference between the position of the forwarder and the position of the carrier follows for example from the following situation. If, during transportation, the cargo is damaged or stolen, the freight forwarder is, in principle, not liable towards the cargo interested party.
After all, on the basis of the agreement with his principal, he was only required to arrange for transport, and not perform the same. This is different for the carrier, who is liable for damage to cargo in principle, except in the event of ' force majeure ' or another exclusion of liability provided by the applicable regime. A forwarder however may be liable if he makes an error, for instance if he accidentally switches container numbers as a consequence of which the container carrying a cargo of by then perished butter ends up in Hong Kong instead of England.
This means that parties can make their own arrangements regarding the liability of the forwarder, for example by agreeing on the applicability of a specific set of general terms and conditions that include provisions relating to limitation of liability such as, for instance, the FENEX general terms and conditions.
In the event that the freight forwarder does not apply general terms and conditions and is considered to be liable after all, the liability is in principle unlimited.
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