Freight Forwarding Agency Activities(FFAA) vs Freight Forwarding Agency Collaboration (FFAC)

Freight Forwarding Agency Collaboration (FFAC) includes all communication, collaboration, and document sharing between freight forwarders about freight and service rate enquiries, agreements, shipment handling, and payments.  FFAC is part of Freight Forwarding Agency Activities (FFAA) that in this text will be explained in details.

Freight forwarders depend on the orders that receive from their customers may need a freight forwarder agent in another country to help them to perform their service to their customer.

For example, if a freight forwarder receives an import Ex-work freight service enquiry from its customer then need a reliable freight forwarder agent in the origin country in order to quote the pre-carriage charges, origin local charges, and export customs formalities in the origin plus ocean/air/trucking/rail freight from origin to destination.

Another example is that a Freight Forwarder issues its own House Bill of Lading (HBL), in that case for sure needs a reliable agent in destination to perform as a delivery agent in the HBL and release the cargo in destination against collecting the original or surrender HBL.

In any case that freight forwarders need an agent in origin or destination country,  they should do below steps that called “Freight Forwarding Agency Activities (FFAA)“:

  1. Finding reliable agents and partners.

  2. Get to know the agents and partners by exchanging company profiles and asking questions about their services.

  3. Sending service rate enquiry to multiple agents.

  4. Negotiating with agents for the best rate and service.

  5. Choosing the best rate and service.

  6. Getting a clear final offer from the agents/partners.

  7. Confirm the final offer.

  8. Communicate, collaborate, share documents with the agent to get shipment done.

  9. Getting updates from agents on the status of shipment.

  10. Getting the invoice from the agent.

  11. audit the Invoice and compare it with the confirmed offer.

  12. Communicate, collaborate, share documents with the agent for confirming statement of account (SOA)

  13. Managing the credit with agents/partners

  14. Arrange the payment to the agent/partner.

  15. Getting the release of cargo from the agent

  16. Analyzing agents/partners performance and the quality of relationship with agents/partners

all the communication and collaborations that are required to perform Freight Forwarding Agency Activities (FFAA) called Freight Forwarding Agency Collaboration (FFAC).

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