By Karen E. Thuermer, AJOT In today’s world where supply chain logistics and management appears to be all the buzz, the job of the freight forwarder seems to be facing a rebranding as a third party logistics provider, or 3PL. While today many freight forwarders offer 3PL services, let’s make one thing perfectly clear. The function of a freight forwarder is different from that of a 3PL although the differentiating lines are fast fading. Travel Agents, Orchestra Conductors Robert Cutler, president of Delmar, a freight forwarder/customs broker headquartered in Montreal, Quebec, for one, describes his business as being akin to a conductor of the orchestra. “We don’t play any pieces, or own any trucks or ships, but we coordinate the entire movement of the product,” he says. Delmar manages the shipment requirements of some 3,000 clients worldwide and manages offices in major North American gateways. In recent years, the company has been expanding vigorously into Asia. Delmar currently employs about 950 people, including more than 600 individuals strategically positioned throughout mainland China, Hong Kong and Taiwan, and about 400 throughout Canada and the United States. Technology is critical to a freight forwarders business. Consequently, Delmar has invested millions in cutting edge computer technology, which enables it to offer high levels of customer services. Meanwhile, the company continues to grow its business through acquisitions, consolidation, and expansion into new markets. Others in the industry have referred to freight forwarders as the “travel agents” for the cargo industry. That’s because freight forwarders organize shipments for individuals or corporations by contracting with transportation providers such as trucking, rail, steamship lines or air cargo operators. They also handle the consolidation of shipments, invoicing, and clearance, and make certain all required paperwork and documentation for the export of those shipments are in order. This includes the commercial invoice shipper’s export declaration, bill of lading, collection of taxes, and other documents required by the carrier or country of export import, or transshipment. Essentially, a forwarder’s job involves being familiar with all rules and regulations for import destinations, modes of transportation, U.S. government export regulations, and documentation associated with foreign trade. Not to be Underestimated Many exporters call on the expertise of their forwarders to gain entry into difficult markets; find clientele through the forwarder’s own networking circle; collect payments; and handle shipments, warehousing and storage needs. Forwarders also play a key role in recommending types and special standards of packaging, marks and labeling, and documentation and insurance requirements. Forwarders assume full responsibility for all banking documents with preparation and completion of all forms. They may also prepare the bill of lading and any special documentation that may be required. When freight is ready to be shipped, forwarders are essential in reviewing letters of credit, commercial invoices, packing lists, and transportation schedules. They assure all cargo is properly insured against damage, loss or pilferage from the shipper’s dock to its final destination. They also know all starts and stops through which the cargo will travel, and any port charges in advances, which they pay and bill back to the customer. But just like travel agents, the role of the traditional freight forwarder has been changing for years as more services became automated and their business has evolved into including additional services such as one-stop, door-to-door transportation services; tightened distribution cycles; assistance in international sourcing of materials; packing; picking; warehousing; consolidating shipments; handling returns and damaged products; and more. That’s why some freight forwarders have expanded their business to become 3PLs. A 3PL looks at a customer’s total supply