In this article, I, Nikita Veremeev, founder of COREDO, will share practical recommendations, strategic ideas, and cases from our team’s experience so you can not only understand the key functions of a freight forwarder but also gain maximum benefit for your business. If you want to understand how modern forwarders help scale exports, implement digital tools and manage the complexities of international logistics: read to the end.
What is a freight forwarder in simple terms
What is a freight forwarder in simple terms? It’s not just a carrier but a specialist who organizes the entire cargo delivery process – from document preparation to choosing the optimal route and transport. Let’s delve further into what exactly a freight forwarder does and what their work involves.
Freight forwarder: what it is and what it does
The key responsibilities of a freight forwarder include:
- strategic planning of the supply chain;
- cargo consolidation and delivery route optimization;
- documentation preparation and verification;
- incident and claim management;
- ensuring compliance with international standards (compliance);
- quality control of logistics services.
The role of a forwarder in international logistics
Our experience at COREDO has shown: a proper choice of freight forwarder not only accelerates processes but also significantly reduces risks associated with delays, documentation errors, and unforeseen costs. In the context of increasing demands for transparency and risk management in logistics, a forwarder becomes the link between the manufacturer, carrier, and final client, ensuring a high level of customer experience in B2B logistics.
A detailed analysis of the functions of a forwarder will help understand why their participation is critical for effective logistics.
Functions of a freight forwarder in logistics
Logistics coordination and supply management
One of the main functions of a freight forwarder: coordination of the logistics chain, including the organization of multimodal transport (sea, rail, road, air), cargo consolidation, and delivery route optimization.
The forwarder also oversees supply management, which includes deadline monitoring, warehouse inventory management, and route adaptation for seasonal peaks or force majeure situations.
Customs documentation preparation for transportation
A freight forwarder takes on the preparation of customs documents, including export declarations, certificates of origin, transport documentation (CMR, Bill of Lading), and electronic data interchange (EDI).
The forwarder also ensures the accompaniment of international transportation, interacting with regulatory authorities and monitoring compliance in international transportation.
Logistics risks and cargo insurance
Risk management in logistics is one of the key competencies of a modern freight forwarder. This includes cargo insurance, incident and claim management, as well as the development of SLA (Service Level Agreement), defining parameters of responsibility and service quality.
Digitization tools in freight forwarding
Digitization tools in freight forwarding allow companies to automate key transportation stages, enhance process transparency, and respond quickly to changes. Modern digital solutions, such as TMS systems, cargo monitoring, and electronic document interchange: are becoming an integral part of effective logistics and help better control all supply chains.
Cargo tracking: digital tools
Modern freight forwarders actively implement digital tools: track & trace systems, IT system integration, electronic data interchange (EDI), IoT solutions for cargo condition monitoring.
Digital freight forwarding is becoming the standard for international logistics, providing not only cargo tracking automation but also enhancing the quality of customer experience in the B2B segment.
Logistics outsourcing and planning
Outsourcing logistics processes through a freight forwarder allows companies to focus on key business tasks, entrusting expertise in supply chain strategic planning to professionals.
The introduction of KPIs in logistics and regular process audits help maintain a high level of service and transparency.
As a result of such comprehensive work, your logistics processes become not only more efficient but also more transparent and manageable: which is directly related to the standards and compliance requirements in key markets of the EU, Asia, and Africa.
Freight forwarder: standards and compliance in the EU, Asia, Africa
In modern conditions, the activity of a freight forwarder requires strict adherence to standards and compliance both in the EU and in Asia and Africa. The necessity of international certification becomes a key factor for market expansion, increasing client trust, and long-term development of forwarding companies.
International standards certification
A freight forwarder is obliged to ensure compliance with international standards (compliance), including certification and licensing of forwarders, managing contracts with carriers, and controlling the quality of logistics services.
In the EU, certification according to FIATA and ISO standards is mandatory, as well as the presence of licenses for certain types of transportation. In Asia and Africa, requirements may vary, requiring a deep understanding of local regulatory features.
COREDO accompanies clients at all stages: from selecting transport service providers to checking compliance in international transportation.
Regional features of the EU, Asia, and Africa
In the EU, there is a high level of digitization and strict compliance standards, in Asia: emphasis on multimodal transport and flexibility, in Africa – the high role of the human factor and limited digitization.
The COREDO team analyzes local requirements and helps clients choose experienced forwarders, minimizing risks, and providing support for international transportation.
| Region | Average service cost | Service features | Compliance/Licenses | Recommendations |
|---|---|---|---|---|
| EU | from 500 EUR/shipment | High level of digitization, strict standards | Mandatory FIATA, ISO certification | Check for licenses, digital track & trace |
| Asia | from 350 USD/shipment | Focus on multimodal transportation, flexibility | Differences by country, often require local partners | Clarify local requirements, choose experienced forwarders |
| Africa | from 400 USD/shipment | Limited digitization, high role of the human factor | Often no unified standards, experience is important | Check reputation, use insurance |
How to choose a freight forwarder
Choosing a freight forwarder is a key step in ensuring sustainable and efficient international transportation. The right decision not only depends on timely delivery of goods but also on the overall safety and economic feasibility of the entire logistics. Let’s understand how to choose a reliable freight forwarder and what to pay special attention to.
How to choose a reliable freight forwarder
When choosing a freight forwarder for international delivery, I recommend paying attention to the following parameters:
- experience in target regions (EU, Asia, Africa);
- availability of modern digital tools and track & trace systems;
- transparency of SLA (Service Level Agreement) and clear KPIs in logistics;
- confirmed compliance with international standards and possession of licenses;
- level of customer experience in B2B logistics.
An effective choice of a freight forwarder becomes especially significant when considering its role in various stages of the logistics chain.
Freight forwarder in the logistics chain
Effective integration of a freight forwarder into an existing logistics chain requires:
- integration of IT systems (ERP, EDI, track & trace);
- automation of interaction with transport service providers;
- change management and staff training for new processes.
Freight forwarding market trends 2025
Innovative technologies for sustainable development
Digital freight forwarding, implementation of IoT and artificial intelligence, and the development of sustainable logistics are becoming key market trends.
The implementation of digital tools for freight forwarders allows not only enhancing transparency but also meeting new market and regulator requirements.
How to choose a freight forwarder for business
A freight forwarder becomes a catalyst for scaling export operations, accelerating entry into new markets by optimizing logistics costs, managing warehouse inventories, and adapting to seasonal peaks.
Competent strategic planning and ROI calculation when outsourcing logistics through a freight forwarder become the key to successful expansion.
Conclusions and recommendations for business
- A freight forwarder: is not just a forwarder, but a strategic partner ensuring coordination of the logistics chain, risk management, compliance, and the implementation of digital solutions.
- To minimize risks and increase efficiency, choose a forwarder with confirmed expertise, modern IT solutions, and transparent SLA.
- The integration of a freight forwarder in supply chain management allows optimizing logistics costs, improving service levels, and accelerating entry into new markets.
- Use a checklist when choosing a partner: experience, licenses, digital tools, process transparency, flexibility, and readiness to work in target regions.
Checklist for choosing a freight forwarder:
- Verified experience in your industry and region
- The availability of digital platforms for track & trace and electronic document interchange
- Certification and licenses, compliance with international standards
- Transparent SLA and clear KPIs
- Flexibility in organizing multimodal transportation
- Reputation and recommendations on the market
- Willingness to integrate with your IT systems
- Comprehensive approach to risk management and cargo insurance