Baggage forwarding or "freight forwarding" as it's more commonly known, is a service typically used to send cargo or "shipments" from one location to another. Baggage forwarding companies provide end-to-end services, i.e. they will pick up your goods from one location and deliver them to your desired location.

Freight forwarders may deliver your international cargo via air or sea. Big, reputable firms will typically have both air, sea and land routes covered to ensure your product reaches its destination at the right time in the right state (and hopefully for the right price).

Businesses who use freight companies do so to export or import goods from one country to another. For the export angle, there are no major hurdles, but when you want to import items, you must go through customs. Therefore if a freight handler is also a customs broker, or has business contacts with one in the desired country, that's a major advantage. Freight forwarders don't require a license; however customs brokers need to be licensed by the CBFCA - Customs Brokers and Forwarders Council of Australia

What you should know before Choosing a Freight Forwarder

Determine if they can handle your domestic or international freight with the care, attention and customization it deserves. For example, if you were to export wine bottles, you'd want to know if the freight company has experience with that item and understands the special packaging requirements.

Are they willing to discuss the process and explain it to you in simple terms?

Do they have a large reputable fleet capable of taking your shipment via air, sea or land, as required? Do they have their own planes or do they lease space on others? Ask for references from other businesses in your industry or consult your local trade bodies for this information.

Do they provide an item list of cost breakdown? This way you'll know exactly how much you're paying for what. It can be tempting to use shipping companies for all your cargo needs because of the end-to-end convenience they offer; however you need to weigh the costs against a regular courier, especially if your goods do not require any special handling or customs issues.

Does the freight forwarder provide ancillary services such as document handling and distribution, letters of credit, communication with concerned parties such as banks and suppliers? Look for a full-service freight forwarder who will offer extra services to ensure a smooth delivery.