Federation of Freight Forwarders⤠Associations in India (FFFAI)is the Apex Body and the Sole Representative of 24 Member Associations from all over India representing 5000 Custom House Agents (employing over 1,000,000 people)There are two major types of freight businessâa freight brokerage business and a freight forwarding business. Both sectors have a range of benefits and downsidesStarting a freight brokerage business:Freight brokerage businesses generally donât handle any shipments themselves. They instead act as coordinators, matching suppliers with carriers. The role involves a great deal of communicationâsoliciting clients, negotiating rates with carriers, tracking shipments, and arranging alternative transport if a problem develops in the supply chain.Starting a freight forwarding business:Unlike brokers, freight forwarding businesses often directly handle customer shipments. Depending on the size of the shipment and the destination, a freight forwarding business could collect goods from a customer, store them at a warehouse, group smaller shipments into one larger consignment, and even deliver them.You will need at least one vehicle for transportation, a secure storage facility for shipments, and potentially packing materials. If youâre planning on commissioning other carrier companies, you will also need to purchase logistical software.However, this increased responsibility also leads to increased liability. Where freight brokers largely act as salespeople, freight forwarders actually handle shipments and are therefore subjected to many insurance and licensing regulations.Funding and Investment: To setup a freight forwarding service in India, one will require a capital investment of approximately 12 crores. A pure third party logistics service will require investments ranging from 65-100 crores. Starting an Inland Container Depot (ICD) or Container Freight Station (CFS) requires investment of several hundred croresCompliance and Registration: In India, registration with International Air Transport Association (IATA), Air Cargo Agent Association of India (ACAAI) are very useful for freight forwarders. Other important registrations in India include:Directorate General of Foreign Trade (DGFT) registrationRegistration with the Income Tax DepartmentRegistrar of Companies and related Government Departments.Private limited company registration.Import export code (IEC).VAT (value added tax) registration.Employeeâs state insurance (ESI) or PF registration.Trademark registration, when there is a unique brand name.Other services:Insurance services : The freight forwarder will provide the client insurance services to make sure that if the items do arrive damaged, they will be reimbursed and not liable for the damages.Documentation: Documentation is important for the shipment of an item overseas. There are a number of documents that the freight forwarder needs to prepare for the shipment that requires specialist knowledge.Bill of Lading (BOL) ⤠The BOL is a contract between the owner of the goods and the carrier. There are two types of BOL; firstly a straight bill of lading which is nonnegotiable and secondly, a negotiable or shipper's order bill of lading. The negotiable BOL can be bought, sold, or traded while the goods are in transit. The customer will usually need an original as proof of ownership to take possession of the goods.Commercial Invoice ⤠The invoice is the bill for the goods from the seller to the buyer. It can be used to determine the true value of goods when assessing the amount of customs duty.Certificate of Origin (COO) ⤠The COO is a signed statement which identifies the origin of the export item.Inspection Certificate ⤠This document may be required by the customer to certify the goods have been inspected or tested and the quality of the goods is acceptable.Export License ⤠This license is a government document that authorizes the export of goods in specific quantities to a specific destination.Shipper's Export Declaration (SED) ⤠The SED is used for export statistics. It is prepared via the US Postal Service (USPS) when the shipment is greater than $500.Export Packing List ⤠This is a detailed packing list that itemizes each item in the shipment, what type of packaging container was used, gross weight, and package measurements.3. Packaging.4. Labeling.5. Why should I be aware of the HS Code and tariff and why is this information important to start my own shipping and freight business you may ask.6. I have been able to find a link of pdf which says Educational wing of Federation of Freight Forwarderâs Association in India. I hope this will be a help for you: http://fiata.com/fileadmin/user_...7. There is a blog by Vijay kumar chouhan related to the challenging opportunities for Freight Forwarders in India: https://www.linkedin.com/pulse/c...Itâs advisable to seek membership of an accredited industry organization. This will lend your new company some credibility, and help persuade potential customers to enlist your services. Here is the link of the FFFAI membership association Welcome to FFFAISome other few links Iâve gathered for you:https://shippingandfreightresour...http://smallbusiness.chron.com/b...http://cerasis.com/2015/06/29/ho...https://bizfluent.com/how-694127...How to Start a Freight ForwardingWith my research Iâve found out that most of the Freight Forwarder Entrepreneurs have asked the same question which youâve asked. So I hope this research help you out. And have a great future ahead.
