A person, establishment or company that has freight forwarder license is registered and authorized by the designated authority for the purpose of engaging in maritime functions and who is liaise with ocean carrier or goods owner providing freight delivery services is referred to as a forwarder or freight forwarder. The forwarder offers other services such as proffering necessary schedule to receive or collect the goods from the owners and make plans for their carriage taking into account the important local and international legislation and standards.
Forwarders act as consolidators for both airfreight and surface traffic. It is their duty to look after the concern of their clients, to check the fees charged by carriers and to bargain special terms when the size of a consignment warrants it in case their clients are not in a position to do. In a country like Nigeria, the fact that close to 80 per cent of goods in circulation in the nation are imported have made the industry a profitable one. It ensures an increase in demand for freight forwarders in view of their service.
Certain conditions are required to be satisfied before the granting of the license for freight forwarding services to any person or company in most part of the world. The importance of licensing is to ensure that only companies whose interest and objective is to provide quality service, gets authorization to function and participate in the industry, since it is a service of trust. The applicant and partners must be of good repute, have enough resources to establish and properly manage freight business, and those responsible for the operations, are professional, and competent
Applicant are expected to comply with Federal Safety regulations, regulations on hazardous material transportation, an orientation/training program for it staff, and familiar with procedures and policies governing the industry. The application is to the Federal agency that has been saddled with the responsibility of regulating the freight movement industry. Insurance forms or bond must be filed within a period of 90 days after the notice of application is published in the Federal Agency in their Register. The applicant is expected to contact the appropriate agencies regulating the service in every State in and through which the applicant will operate to obtain information regarding various State rules applicable to interstate authorities.
Freight forwarder license is granted to a person or a company and are generally expected to work by complying with all regulations, laws and international conventions as it relate to local and international maritime and trade. They comply with the forms of the bill of lading, process of ship arrival declaration and make possible the exchange of data and information for ships and goods, and shipping marks, requirements of packing, goods separation and cautions against dangerous goods pursuant to the established international practices and codes.
The condition for granting licenses differs from one country to country. As a matter of fact the definition of the licenses issued from one country to another also differs in view of the scope of work, responsibilities, and liabilities, the freight forwarders is expected to bear. This has created an obstacle in the harmonization of international freight policy. Local content and definition of the service go a long way in affecting the global understanding and regulation of the industry. The present regulation of forwarders law, with several conflicting and different principles in local law and various general conditions is bringing about confusion and therefore, unsatisfactory. In order to do away with the present disparities in the industry globally, a global framework developed.
Source by Brijesh P Ghelani