FREIGHT

FORWARDING
OPERATIONS
MODULE 4 Lecture 1

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
1
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 What is freight forwarder?

• a commission agent
performing on behalf of the
exporter/importer routine
task such as
loading/unloading of goods,
storage of goods, arranging
local transport, obtaining
payment for his customer,
etc.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 What is freight forwarder?
• There is no intentionally accepted definition of the term
“freight forwarder”.
• Forwarders are known by different names in different
countries:
 customs house agent
 clearing agent
 customs broker
 shipping and forwarding agent
 in some cases acts as “principal carrier”, that is, the main carrier.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
Lecture 1

SCOPE FREIGHT
FORWARDING SERVICES

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNOR (EXPORTER)
 Choose the route, mode of transport and suitable carrier
 Books space with the selected carrier.
 Take the delivery of the goods and issue relevant documents such
as the forwarder’s Certificate of Receipt, the Forwarders Certificate
of Transport, etc.
 Study the provisions of the letter of credit and all government
regulations applicable to the shipment of goods in the country of
export, the country of import, as well as any transit country

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNOR (EXPORTER)
 Pack the goods (unless this is done by the consignor before
handling them over to the forwarder) taking into account the
route, the mode of transport, the nature of the goods and
applicable regulations, if any, in the country of export, transit
countries and country of destination.
 Arrange warehousing of the goods, if necessary.
 Weigh and measure the goods.
 Draw the consignor’s attention to the need for insurance and
arrange for the insurance of goods, if required by the
consignor.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNOR (EXPORTER)
 Transport the goods to the port, arrange for customs
clearance, related documentation formalities and deliver the
goods to the carrier.
 Attend to foreign exchanged transactions, if any.
 Pay fees and other charges including freight.
 Obtain the sign bills of adding from the carrier and arrange
delivery to the consignor.
 Arrange for transshipment route, if necessary.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNOR (EXPORTER)
 Monitor the movement of goods all the way to the consignee
through contacts with the carrier and the forwarder’s agent’s
abroad.
 Note damages or loses, if any to the goods.
 Assists the consignor in pursuing claims, if any against the
carrier for loss of the goods or for damage to them.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNEE (IMPORTER)
 Monitor the movement of goods on behalf of the consignee
when the consignee controls freight that is the cargo.
 Receive and check all relevant documents relating to the
movement of the goods.
 Take delivery of the goods from the carrier, if necessary, pay
the freight costs.
 Arrange customs clearance and pay duties fees and other
charges to the customs and other public authorities.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 ON BEHALF OF THE
CONSIGNEE (IMPORTER)
 Arrange transit warehousing, if necessary.
 Deliver the cleared goods to the consignee.
 Assists the consignee, if necessary, in pursuing
claims, if any against the carrier for the loss of
the goods or any damage to them.
 Assists the consignee, if necessary in
warehousing and distribution.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
Lecture 2

OTHER SERVICES OFFERED

BY FREIGHT FORWARDERS

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 Other Services of A Freight
Forwarder
• may also provide, depending upon the
requirements of his customer
• such as consolidation or groupage services
(grouping individual consignments)
• turnkey projects (supplying equipment, plant
etc. ready, for operation)

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 Other Services of A Freight
Forwarder
• advise his customer on consumer needs, new
markets, and competitive situations, export
strategy, appropriate trade terms to be
included in foreign trade contracts and in
short in all matters relating to his business.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 SPECIAL CARGOES
• Freight forwarders usually handle general
cargo consisting of a large variety of finished,
unfinished or semi-processed goods.
• forwarders may also provide, depending upon
the requirements of their customers, other
services arising in connection with special
cargoes
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 TRANSPORTATION OF
PROJECT CARGOES
• This essentially involves the
movement of heavy
machinery, equipment, etc.,
for the construction of large
projects such as airports,
chemical plants, hydro-
electric plants, oil refineries,
etc., from manufacturers to
constructions sites.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 GARMENT HANGING
SERVICES
• Garments are carried in hangers
hung on racks in special containers
and, at the destination; they are
transferred directly from the
containers to stores for display.
• This avoids the need for processing
the garments which would have
been necessary had they been
stuffed inside containers and at the
same time provides protection from
the weather, dust, etc...
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 OVERSEAS EXHIBITION
•  Freight forwarders are usually
appointed by organizers of exhibitions
to transport exhibits offered by
different exhibitors to the exhibition
site in another country.
• The forwarders have to comply with
the special instructions of the
organizers in regard to the form of
transport to be used, the specific
customs terminal in the country of
destination, when the exhibits are to
be delivered, the documentation
required, etc…
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
Lecture 3

RIGHTS, DUTIES AND

RESPONSIBILITIES OF FREIGHT
FORWARDER

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
  COMMON LAW COUNTRIES

• based on the concept of agency.

• forwarder is the agent of his principal, the
consignor/consignee, in arranging transport of the
latter’s goods, and he is subject to the traditional
rules of agency such as the provision of due care in
the performance of his duties, being loyal to the
principal, the duty to obey reasonable instructions
and to be able to account for all transactions.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
  COMMON LAW COUNTRIES

 As an agent:
• the deference’s and limitations of liability which are
appropriate to an agent are available to him.
 As a principal:
• becomes responsible for the satisfactory performance
of the whole transport operation, including the period
when the goods are in the custody of the carriers and
other agencies whose services he makes use of.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 CIVIL LAW COUNTRIES
• the legal status and consequential rights and
obligations of forwarders vary from country to
country.
• transact business in their own name for the
account of their principals.
• hey are considered to be agents in relation to their
principals (consignor or consignee) and principals
in relation to the carriers.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 STANDARD TRADING
CONDITIONS
• the contractual obligations of the forwarder in his
relationship with his customer and in particular,
his rights, responsibilities and liabilities as well as
the defenses available to him.
• formulated in accordance with the commercial
practices or legal system prevailing in each
country in some countries (FIATA)

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 STANDARD TRADING
CONDITIONS
• Helps maintaining professional service and
standard of a freight forwarder
• In countries where standard trading
conditions do not exist, the contracts entered
into between the forwarder and the customer
define their respective right, duties and
responsibilities.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 STANDARD TRADING
CONDITIONS
• Although the standard trading conditions may
vary from country to country, a forwarder is
expected to:
• Take reasonable care of the goods entrusted to
him
• Comply with the instructions of his customer in
relating to their transportation.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 STANDARD TRADING
CONDITIONS
• The freight forwarder does not commit him to
any firm date of delivery at destination and
has usually a right to lien and detention over
the goods in the event of failure on the part of
his customer to pay his dues.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 RIGHTS, DUTIES AND
RESPONSIBILITIES OF THE
FORWARDER AS AN AGENT
• A forwarder acting as an agent generally accepts liability for
his own faults or the faults of his employees. Examples of
such errors and omissions are:
• Delivery of goods contrary to instructions
• Omission to take cargo insurance in spite of instructions
• Errors during customs operations
• Routing to wrong destination
• Re-export without compliance with necessary formalities for
drawback or refund of duty, etc…
• Delivery of goods without collecting cash from consignee.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 RIGHTS, DUTIES AND
RESPONSIBILITIES OF THE
FORWARDER AS AN AGENT
•  The forwarder is also exposed to claims from
third parties.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 RIGHTS, DUTIES AND
RESPONSIBILITIES OF THE
FORWARDER AS A PRINCIPAL
• As a principal, the forwarder is an independent
contractor who assumes responsibilities IN HIS
OWN NAME for providing the services required by
his customer.
• He becomes liable for the acts and omissions of
carriers, re-forwarders etc
• He negotiates with his customer price for his
services instead of receiving a commission.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 RIGHTS, DUTIES AND
RESPONSIBILITIES OF THE
FORWARDER AS A PRINCIPAL
• As a principal, his liability to third parties, his right
to limitation of liability and right to exercise lien
on goods remain in the same as in his role as an
agent.
• When forwarders assumes the role of a principal
for providing multimodal transport services, the
standard trading conditions do not generally
apply.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 RIGHTS, DUTIES AND
RESPONSIBILITIES OF THE
FORWARDER AS A PRINCIPAL
• In the absence of applicable international
conventions, multimodal transport contracts
are largely governed by the rules framed by
the International Chamber of Commerce
known as the “ICC Uniform Rules for a
Uniform Combined Transport Document”.

FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 GOVERNMENT AND OTHER
PUBLIC AUTHORITIES
• In the public sector, the forwarder has to deal
with the following:
• Customs authority
• Port authority for port clearance
• Central Bank for exchange control permission.
• Ministry of Health for obtaining the health licenses.
• Import/export trade control authorities.
• Transport licensing authorities
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
 PRIVATE PARTIES
• In the private sector, the forwarder has to deal with several parties:
a. Carriers and other agencies such as:
• Ship owners;
• Road operators;
• Railways;
• Airlines; and
• Inland waterway operations regarding arranging the schedule and booking the space.
b. Warehousemen for warehousing the goods.
c. Insurers for insuring cargo.
d. Packaging organization for packing the goods.
e. Commercial banks for the operation of documentary credit.
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023
END OF LECTURES
FREIGHT FORWARDING
OPERATIONS
MODULE 4 LECTURES 1-3
PROF. RENZD.
DR. SUNNY PATRICK
AGUILA,SANTOS
LCB-MCA
ADAMSON UNIVERSITY
WESTERN COLLEGES SYSY 2020-2021
2022-2023