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How To Start A Small Freight Business

The document discusses options for careers in freight forwarding. It provides details on the following: 1) Freight forwarders coordinate international shipping and logistics, ensuring cargo is delivered safely and legally. Their responsibilities include documentation, pricing, customs, and regulations. Training is typically on-the-job with seminars offered. 2) Proper licensing from agencies like the FMC and IATA may be required depending on shipping methods used. Specializing in specific modes of transportation or customs processes is also recommended. 3) Professional associations like the NCBFAA provide resources on topics like operating as an ocean transportation intermediary.

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0% found this document useful (0 votes)
54 views

How To Start A Small Freight Business

The document discusses options for careers in freight forwarding. It provides details on the following: 1) Freight forwarders coordinate international shipping and logistics, ensuring cargo is delivered safely and legally. Their responsibilities include documentation, pricing, customs, and regulations. Training is typically on-the-job with seminars offered. 2) Proper licensing from agencies like the FMC and IATA may be required depending on shipping methods used. Specializing in specific modes of transportation or customs processes is also recommended. 3) Professional associations like the NCBFAA provide resources on topics like operating as an ocean transportation intermediary.

Uploaded by

Rene
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1- Freight Forwarding option:

Between 2008 and 2018, employment of freight and cargo agents is expected to grow by 24 percent its
2008 national numbers of 85,900, reports the U.S. Bureau of Labor Statistics. As part of this occupational
growth, freight forwarders coordinate international multimodal transportation related to logistics, pricing,
insurance, warehousing, trade customs, certain export trade regulations, and transport documentation.
Freight forwarders use their knowledge of international freight cargo to ensure that exporters' shipments
are delivered economically, safely and in compliance with applicable laws.
Step 1
Learn about the international transportation process. A freight forwarding degree does not exist. Freight
forwarding firms generally provide informal on-the-job training to employees new to the profession.
Vocational schools, professional associations and transportation companies offer courses, seminars and
workshops to assist freight forwarders to stay abreast of the ever changing developments that occur within
the freight transportation industry. Also, fine tune your communication and administrative skills.
International shipping for export trade involves parties that have significant financial investments in these
global transactions. Freight forwarders must be skilled communicators, administrators and overall
taskmasters when coordinating third-party services and monitoring transportation schedules.
Step 2
Study the documentation generated in international transportation transactions and the applicable
regulations. Global transport is document-intensive, involving paperwork such as bills of lading, letters of
credit and a wide assortment of customs documents. Freight forwarders handle pro forma invoicing,
which are quotations for shipping rates. Freight forwarders are expected to have knowledge of U.S.
export regulations because, in part, they might be called on by clients to determine whether shipping
certain goods or products to a particular country is allowed and, if so, under what restrictions. Freight
forwarders also require trade customs knowledge, such as about the Commodity Classification Automated
Tracking System, which determines customs transportation pricing.
Related Reading: How to Start a Small Freight Business
Step 3
Secure proper licensing, accreditation and certifications if you will operate individually or operate a
freight forwarding firm. Ocean Transportation Intermediaries, which includes ocean freight forwarders
and non-vessel operating common carriers, are subject to licensing, bonding and regulations established
by the Federal Maritime Commission. Accreditation with the International Air Transport Association
might also be required for freight forwarders that handle international air freight as a cargo agent.
Additionally, the U.S. Department of Transportation's Federal Motor Carrier Safety Administration has
general jurisdiction over surface freight forwarder services. Depending on the scope of services you
provide, other certifications, licensing and accreditation may apply.
Step 4
Develop a specialization. Some freight forwarders specialize in handling specific modes of transportation.
Options include air, rail, ocean and in-land waterways. Join professional associations for freight
forwarders, such as the National Customs Brokers and Forwarders Association of America, or NCBFAA,
to access publications and resources, as well as to participate in educational seminars and workshops to
gain specialized knowledge. For example, the NCBFAA provides detailed information about operating as

an Ocean Transportation Intermediary, a specialty area for freight forwarders specifically coordinating
ocean transport services.
2- Air Freight Consolidators, Ocean Transport Intermediaries, and Non-Vessel
Operating Common Carriers (NVOCC)
To qualify, your company must be an active Air Freight Consolidator, Ocean Transportation Intermediary
or Non-Vessel Operating Common Carrier (NVOCC), have an office staffed in the U.S., and must also
possess a valid continuous international carrier bond and/or in bond/export Consolidator bond (IBEC)
registered with CBP. Also, if applicable, companies must have an active Federal Maritime Commission
(FMC) issued Organization Number or an International Air Transport Association (IATA) issued
Organization Number.
Eligibility Requirements
1.
2.
3.

4.
5.
6.
7.

Be an active Air Freight Consolidator, Ocean Transportation Intermediary or Non-Vessel


Operating Common Carrier (NVOCC).
Have an business office staffed in the United States.
If applicable, have an active Federal Maritime Commission (FMC) issued Organization Number
or an International Air Transport Association (IATA) issued Organization Number in the following
format: ###### FMC Organization Number and ###### IATA Organization Number
Possess a valid continuous international carrier bond and/or in bond/export consolidator bond
(IBEC) registered with CBP.
Have a designated company officer that will be the primary cargo security officer responsible for
C-TPAT.
Commit to maintaining C-TPAT supply chain security guidelines as outlined in the CTPAT
consolidator agreement.
Create and provide CBP with a C-TPAT supply chain security profile, which identifies how the
consolidator will meet, maintain and enhance internal policy to meet the CTPAT consolidator security
guidelines.
3- Hazmat Handler
Storage and Handling Equipment
Storage equipment is usually limited to non-automated examples, which are grouped in with
engineered systems. Storage equipment is used to hold or buffer materials during downtimes, or times
when they are not being transported. These periods could refer to temporary pauses during long-term
transportation or long-term storage designed to allow the buildup of stock. The majority of storage
equipment refers to pallets, shelves or racks onto which materials may be stacked in an orderly manner to
await transportation or consumption. Many companies have investigated increased efficiency possibilities
in storage equipment by designing proprietary packaging that allows materials or products of a certain
type to conserve space while in inventory.
Examples of storage and handling equipment include:

Racks, such as pallet racks, drive-through or drive-in racks, push-back racks, and sliding racks
Stacking frames
Shelves, bins and drawers
Mezzanines
Engineered Systems
Engineered systems cover a variety of units that work cohesively to enable storage and transportation.
They are often automated. A good example of an engineered system is an Automated Storage and
Retrieval System, often abbreviated AS/RS, which is a large automated organizational structure involving
racks, aisles and shelves accessible by a shuttle system of retrieval. The shuttle system is a mechanized
cherry picker that can be used by a worker or can perform fully automated functions to quickly locate a
storage items location and quickly retrieve it for other uses.
Other types of engineered systems include:
Conveyor systems
Robotic delivery systems
Automatic guided vehicles (AGV)
Industrial Trucks
Industrial trucks refer to the different kinds of transportation items and vehicles used to move materials
and products in materials handling. These transportation devices can include small hand-operated trucks,
pallet-jacks, and various kinds of forklifts. These trucks have a variety of characteristics to make them
suitable for different operations. Some trucks have forks, as in a forklift, or a flat surface with which to
lift items, while some trucks require a separate piece of equipment for loading. Trucks can also be manual
or powered lift and operation can be walk or ride, requiring a user to manually push them or to ride along
on the truck. A stack truck can be used to stack items, while a non-stack truck is typically used for
transportation and not for loading.
There are many types of industrial trucks:
Hand trucks
Pallet jacks
Pallet trucks
Walkie stackers
Platform trucks
Order picker

Sideloader
Many types of AGV
Bulk Material Handling Equipment
Bulk material handling refers to the storing, transportation and control of materials in loose bulk form.
These materials can include food, liquid, or minerals, among others. Generally, these pieces of equipment
deal with the items in loose form, such as conveyor belts or elevators designed to move large quantities of
material, or in packaged form, through the use of drums and hoppers.
Conveyor belts
Stackers
Reclaimers
Bucket elevators
Grain elevators
Hoppers
Silos
Other Materials Handling Guides
Common Types of Pallet Racks
Drum Liners Buying Guide
Food Containers Buying Guide
4- Improve Customer Service
5- Sales and Operations Planning
6- Supply Chain Network Desiogn
Establish customer service offers (your first bookend)
a. Customer locations and lead time
b. Service expectations
Establish supply points/lead times (your other bookend)
Identify current network performance

c. Facility costs
d. Inventory costs
e. Transport costs (inbound and outbound)
f.

Service performance

Test and quantify alternatives for least-cost networks


Consider network transformation, if the benefit will be large enough
7- Outsourcing, become middle mans
8- Performance measure of our team (Quality assessments)
9- Sales and Marketing Strategy

A market penetration strategy.

A growth strategy. This strategy for building your business might include: an internal strategy
such as how to increase your human resources, an acquisition strategy such as buying another
business, a franchise strategy for branching out, a horizontal strategy where you would provide
the same type of products to different users, or a vertical strategy where you would continue
providing the same products but would offer them at different levels of the distribution chain.

Channels of distribution strategy. Choices for distribution channels could include original
equipment manufacturers (OEMs), an internal sales force, distributors, or retailers.

Communication strategy. How are you going to reach your customers? Usually a combination of
the following tactics works the best: promotions, advertising, public relations, personal selling,
and printed materials such as brochures, catalogs, flyers, etc.

10- Create Your Business Plan

Executive Summary
Company Description
Market Analysis
Organization & Management
Service or Product Line
Marketing & Sales
Funding Request
Financial Projections

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