Freight Forwarder License

A freight forwarder also called a freight agent or forwarding agent is a domestic transportation expert who is a well informed about the logistics of cargo shipment of manufactured and distributed goods. A freight forwarder arranges for transportation of trade goods by contracting with hired carriers companies. Forwarders are the go-between manufacturers, suppliers, buyers and carriers, who arrange pre-transportation, shipping and issues of documentation in agreement with instructions from their clients.

They generally do not take possession of the cargo, nor take over the responsibility for the cargo arrangement except on few occasions. Their task is much of the technical works that has to do with shipping documentation, terms and charges. In the United States like in most other parts of the world, a license is required for the operation of a freight company.

After acquiring the required training and knowledge required in freight forwarding, which can be through, being an apprentice with a licensed freight forwarder. Freight training is also available to teach prospective freight forwarders about the relevant transportation and logistical knowledge, using a collection of manuals and books.

This application for freight forwarding license is made to the Federal Motor Carrier Safety Administration, a government agency set up by law to administer the service of registering and issuing licenses to freight forwarders in the case of the United Stated. A surety bond will have to be obtained as established by the FMCSA, to be filed along with the OP-1 application form. The present bond required is $10,000 and a proof of such bond must be filed. The forwarder must also indicate and file a designation of process form for state in which its plan to conduct it business and the requirement might differ from state to state. It is important to be acquainted with each state requirement to be sure of the requirement. An agent must be designated for each state the prospective freight forwarder seeks to operate in and filing must also be completed before an application approval by the FMCSA. It will take about a month or two for the authority to process this application and charges and other relevant information can be gotten of the FMCSA's website.

The conditions required for the licensing of a person or company to perform the task of forwarding services often defers from one part of the world to another. While some countries have because of their rich history in freight service have established freight forwarding services and regulatory bodies, set up to provides regulatory framework for the industry some others are yet to develop any regulatory framework. This however, has consequences even for the international trade. The failure to provide a regulatory framework locally in some countries impedes the general desire to develop an integrated regulatory framework that will protect the interest of every country and the international community.

The freight forwarder license differs in duration. Some are issue to the applicant to be renewable within a period of year, say 10 years while in some other settings it's issued for life. This mean the regulatory agent will only contact you periodically to update it data and issue notice to pay a specified amount called continuation fee. The regulatory agency reserves the right to withdraw a life license already issued or in the case of a breach or failure to comply with laid down rules.

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