Freight Forwarders UK
This page covers the following topics:
What is a freight forwarder or a freight forwarding service?
What services do freight forwarders offer UK businesses which are importing and exporting?
Top tips for a UK trading company looking for a freight forwarding company to transport their goods.
What are the biggest challenges trading UK businesses have with moving goods?
What is Bulk Customs Clearance?
What is a freight forwarder or a freight forwarding service?
A freight forwarder is a company that looks after moving your cargo. Some have their own fleet, and some operate through a network of transporters. Often, freight forwarders have a network of customs brokers in the relevant countries to ensure they obtain the correct documentation to facilitate the movement.
In short, they will pick up the cargo from its origin (e.g. a warehouse or your door) and deliver it either to the airline, shipping line, or road haulage specialist to ensure it reaches its destination.
Freight forwarding services complete the actual movement of the goods.
What services do freight forwarders offer UK businesses that export or import goods?
Freight forwarding services provide door-to-door haulage, integrating the movement with airlines and shipping lines. Their core expertise is in moving goods.
They complete shipping documents such as bills of lading, airway bills, CMR notes (otherwise known as the consignment note). These items prove that goods are en route, or they are leaving on a particular vessel or a particular airline via air freight.
The freight forwarder does not prepare other documents such as commercial invoices, Certificates of Origin, licenses or additional specific authorisations that the trading business needs.
The trading business itself, potentially supported by their local Chamber of Commerce, will need to ensure that the remainder of the documentation is readily available.
At times, freight forwarders offer customs clearance to complete import/export customs declarations as part of their service or outsource them to a network of brokers of their choice.
Export or import declarations cannot be completed without a freight forwarder, customs clearance agent/customs broker having all the required documentation ready.
Top tips for a UK company trading overseas looking for a freight forwarder company to transport their goods
If you're looking for a freight forwarder, you should look for a company with a good network, that can ensure the unhindered movement of your goods. Some things to look out for:
Is your freight forwarder IATA registered?
Does your freight forwarder have a good network of companies? How many times will they hand your goods over to a different company?
Does your freight forwarder have experience of transporting your type of goods (e.g. perishables, licensable, excise, dangerous, high value, livestock, etc.)
Does your freight forwarder have a good knowledge of the current regulations surrounding the UK border operating model?
Freight forwarders play a vital role in international trade, mainly thanks to their network, relationships with airlines and shipping lines.
However, please note that they may not have the detailed specialist knowledge that a customs broker/customs clearance agent offers in advising you on your specific business and particular goods.
A customs broker/customs agent will have significant international trade experience and expertise that you can tap into.
What are the biggest challenges trading UK businesses have with moving goods internationally?
Errors, omissions, or mistakes when filing a customs declaration can cause a lot of pain: the cargo can be severely delayed, penalties with HMRC can be incurred, and often, the company gets tied up in knots trying to resolve something incorrectly declared.
Some freight forwarding companies outsource the data entry work involved in customs clearance to third parties which can run the risk that the entry clerks representing the customers with HMRC and the border agencies are missing in-depth industry knowledge or international trade understanding.
This can be avoided when freight forwarding companies and customs clearance agents, like ChamberCustoms, are able to work collaboratively together; serving the best needs of the trading business.
What is Bulk Customs Clearance?
Big consolidators can clear the whole container in bulk using a bulk customs declaration rather than clearing each parcel with an individual customs declaration. As a rule of thumb, HMRC will apply one rate of duty/VAT for the entire shipment.
Bulk customs clearance can be advantageous in some circumstances. Businesses often ask a consolidator to move their goods as part of a bulk load.
However, in some cases, the bulk clearance may not be penalised.
Despite being the experts in moving goods, it is possible for freight forwarders to make incorrect assumptions about goods and miss the nuances on different products, goods, different duties rates, rules of origin and different customs unions to consider in comparison to an expert customs clearance agent who can help you understand whether bulk clearance would work in your favour.
Please note:
Since January 2021, all goods moving between Great Britain, the European Union, and countries outside the EU require a customs declaration. HMRC put easements in place to make things easier for internationally trading companies. However, as of January 2022, these have been lifted, and full customs controls are now in place.