A Complete Guide to Freight Forwarding Authority in Trucking

Freight forwarders play an integral role in the cargo shipping industry. Like trucking companies, forwarders need special permits and certifications to comply with the strict regulations of their jobs. Freight forwarding authority ensures that forwarders handle shipments appropriately. 

After freight forwarders register for a USDOT number, they must obtain other tools to facilitate seamless shipping processes and manage the paperwork that comes with it. Federal Motor Carrier Authority Filings offers the following guide to assist new freight forwarders in understanding the process.   

What Does a Freight Forwarder Do?

A freight forwarder connects cargo carriers with shippers, facilitating safe transportation between the shipment’s starting point and destination. Some people confuse forwarders with brokers because their work bears a few similarities. However, forwarders have a more hands-on role when dealing with cargo shipments versus brokers who never personally handle the transported goods. 

Additionally, a freight forwarder must adhere to stricter regulations than brokers. They have a more direct responsibility in protecting shipments and ensuring safe transport. The three main types of forwarders oversee different modes of transportation. 

Rail Forwarders

Many goods only travel over land within a specific continent. A rail forwarder will handle the transportation logistics for these shipments. Typically, they arrange travel by railroad or trucking route. Many shippers prefer railroad routes because they can accommodate larger loads, offering a more economical option. 

Air Forwarders

Some shippers prefer sending their goods by airplane because of the speed. An air forwarder will arrange the logistics for this type of transportation. Travel by air works best for perishables and other goods with a tight arrival deadline.  

Ocean Forwarders

Intercontinental shippers arrange cargo transportation with ocean forwarders. These shipments move by ship across oceans from one continent to another. An ocean forwarder has connections that get cargo through customs clearance quickly.  

What Is Freight Forwarding Authority?

All freight forwarders must apply for and obtain freight forwarding authority to facilitate speedy cargo transportation. First, a forwarder needs an OP-1(FF), which grants forwarding authority from the Federal Motor Carrier Safety Association. A motor carrier number for a freight broker is also required. 

Finally, independent freight forwarders earn an ISO 9001 certificate. This certification demonstrates that independent forwarders will adhere to high-quality standards. The forwarder must work toward the ISO 9001 certificate for months, undergoing numerous audits and constant training throughout the process. 

How Forwarders Help Shipments Travel 

A freight forwarder has many duties that contribute to the whole shipping experience. However, you can narrow down these tasks into three categories: 

• Consolidation: Forwarders make the shipping process less costly by consolidating shipments. When a small shipment comes under their care, it doesn’t need a whole container to itself. The forwarder will add the freight to another container carrying other small loads. 
• Clearance: Transporting goods across international borders is a headache. Carriers and shippers can incur penalties, fines, and blows to their reputation if they fail to clear customs. Forwarders ensure all shipments follow customs requirements and have proper documentation. 
• Organization: Finally, forwarders keep cargo transportation organized. They identify shipping routes, communicate with all involved parties, and supply cargo insurance. They keep tracking and shipping processes smooth for all organizations involved. 

Compliance for Freight Forwarders 101

What should a new freight forwarder prepare to provide once they obtain their authority? You should have the following elements ready to present for the shippers and carriers you work with throughout your career. 

Freight Authority

Keep the documents detailing your authority and legitimacy organized, updated, and ready for viewing. This may include shipment receipts and other documents about specific transports. Hard copies of your certifications back your reputation and the legality of your services. 

Insurance

Shippers want to rest assured that they entrusted their goods with capable forwarders. Cargo insurance provides peace of mind that you’ll protect the cargo throughout transit. Should an accident occur, your policy will cover the costs. 

Analytics

Verifiable data plays an essential role in gaining trust and demonstrating proficiency in your industry. Find reliable methods for accessing real-time shifts in shipping charges and routes. You can improve your network’s experience and alleviate connected parties of avoidable expenses. 

Inventory Management

As a freight forwarder, you’ll handle large quantities of stock. Tracking the constant movement of that inventory is a unique challenge. Create an organized inventory management system to ensure you know a shipment’s contents and location at all times.

Digital Filing Services

Finally, all essential facets of the transportation industry require compliance from the companies and individuals fulfilling those roles. Most permits require regular reapplications and updates annually or biannually. Organize your forwarder information and receive pertinent updates via a reputable digital filing service. 

Procure Your Freight Forwarding Authority With FMCA Filings

Start your freight forwarding career with helpful solutions from FMCA Filings. Our service allows you to obtain your freight forwarding authority with a USDOT and MC number. Have further questions, like whether you need an MC number for a freight broker? Reach out online now.