Shipping and logistics

What a freight forwarder does.

A forwarder arranges transport and the documents that go with it. They are not a carrier, they are not your customs broker unless you engaged them for that, and they do not carry your import obligations. What separates a good one on an Indonesian shipment is whether they understand the domestic leg.

Seven jobs.

Not all are needed on every shipment, and a buyer with a simple route may want only booking and documents.

  1. 01

    Book space

    With a carrier, on a service, for a sailing. Frequency and transhipment are decided here and they matter more than the rate on Indonesian cargo.

  2. 02

    Arrange inland movement

    From the producer to the port or the consolidation warehouse. On eastern Indonesian cargo this includes an inter-island leg with its own schedule.

  3. 03

    Handle export formalities

    Documentation at origin, terminal handling, and the verified gross mass submission before the cut-off.

  4. 04

    Issue transport documents

    A house bill of lading in many cases, which is their own document rather than the carrier's. Worth knowing when a bank is involved.

  5. 05

    Consolidate

    Where several suppliers feed one container, somebody has to receive, check and load. Some forwarders do this well and some subcontract it invisibly.

  6. 06

    Arrange insurance

    Usually as an agent rather than as an insurer. Read what cover was actually bought rather than assuming all risks.

  7. 07

    Coordinate at destination

    Delivery to the port of discharge and, where engaged, clearance and delivery to your door.

Three things they cannot carry.

Your position as importer of record. The customs declaration and the duty are yours whoever files them, and an arrangement where somebody else acts as importer transfers real legal responsibility rather than paperwork.

Your market's import obligations. Food programmes, product safety, registration and packaging obligations sit on the importer, and a forwarder is not equipped to notice you are missing one.

Responsibility for what is in the container. They arrange transport of what the shipper declared. Whether the box holds what the invoice says is the inspection's job and nobody else's.

The question that separates them.

Ask how the goods get from the producer to the port. A forwarder who quotes from Jakarta or Surabaya without asking where the producer is has quoted the easy half of an Indonesian shipment.

The follow-up is what happens if the domestic leg slips. On an archipelago that is the leg most likely to move, and a forwarder who has never dealt with an inter-island vessel will discover it with your cargo.

Then ask whether the house bill is theirs or the carrier's, because it matters to a bank and it matters if the forwarder has a problem.

Questions buyers ask.

Should I use my supplier's forwarder?

Under FOB you choose, and using the seller's nominated forwarder is convenient and puts the party arranging your transport in a relationship with the other side. It is common and it is worth being aware of rather than assuming it is neutral.

Is a house bill of lading a problem?

Not in itself, and it is the forwarder's own document rather than the carrier's. Where a bank or a letter of credit is involved, check which document is acceptable before booking, because a credit calling for a carrier bill will not accept a house one.

Do I need a forwarder and a broker?

Many forwarders offer both and they are different functions. What matters is that somebody is responsible for the customs entry in your name and that you know who. Assuming the forwarder covers it is how entries get filed on guesses.

Sourcing from Indonesia?

Tell us the product, the quantity and the destination. We come back with what it involves before anyone talks about money.

One line is enough to start. The more exact you are, the faster the answer comes back.

What you want back

Add a specification, packaging or a target price

Optional, and the fastest way for us to reply.

We answer within one working day, from Indonesia on UTC+7. Wholesale orders from $10,000 per shipment.