A brief (yet surprising) history of freight forwarding
Posted by Temando on Monday, October 14, 2013
Freight is an area that we all have an
interested in, from the computer you are reading this on to much of the food
you have eaten today, freight means that we have all the things around us that
we need. For the past hundred or so years, we have become a truly global
society. In the past humans used local goods that they made or grew themselves.
As our civilisation has grown in size and complexity freight has become
increasingly important. The world is diverse and no area has everything it
needs. Hence freighting goods and materials around to ensure that despite
regional variation you can have your breakfast and check your emails.
Freight has been around for many thousands of
years, with evidence of English and Flemish traders selling wool and other
commodities to each other many years ago, for the majority of history the owner
of the freight has been the one in charge of moving it. However, as the world
grew there was a need for an intermediary to take charge of organising the
freight, there was a need for freight forwarders.
A freight
forwarder is a person or company who organizes shipments for individuals
or corporations to get goods from the manufacturer or
producer to a market, customer or final point of distribution. Forwarders
contract with a carrier to move the goods. A forwarder does not move
the goods but acts as an expert in supply chain management. A forwarder
contracts with carriers to move cargo ranging from raw agricultural products to
manufactured goods.
Funnily enough though, the first international
freight forwarders were not canny businessmen who saw an opportunity but rather
were innkeepers in London who held and re-forwarded the personal effects of
their hotel guests. The original function of these hotelier freight forwarders
was to arrange for carriage by contracting with various carriers.
One of the earliest proper freight forwarders
was Thomas Meadows and Company Limited of London, England. With increasingly
reliable rail transport and steamships there was a sudden demand for the
fledgling freight forwarding industry. Trade developed between Europe and North
America, creating additional demand. Their forwarder responsibilities included things
like advice on documentation and the customs requirements in the country of
destination. His correspondent agent overseas looked after his customers' goods
and kept him informed about matters that would affect movement of goods.
In modern times the forwarder accepts the same
responsibilities. It operates either as a domestic carrier or otherwise with a
corresponding agent overseas or with his own branch-office. In a single
transaction, the forwarder may be acting as a carrier (principal) or as an
agent for his customer or both.
The Lloyd's Loading List is the freight
forwarding industry’s journal of record, it was first published 160 years ago
as a UK export directory today it provides details of forwarders, nvoccs,
shipping lines/agents who serve over 10,000 ports globally
These days there are many freight options, from
sea to air, you no longer have to get in touch with a London hotelier if you
want to get your shipping from one country to another.
Categories: Industry Posts