Amazon FBA Freight Forwarders Explained in Detail
If you’ve been selling products on Amazon for some time, you’ve probably heard the term Amazon freight forwarders mentioned more than once.
International trade plays a major role in building a scalable and profitable eCommerce business. While importing and exporting open doors to global markets, they also come with their fair share of complexity.
From extensive paperwork and compliance requirements to managing shipping routes and timelines, global logistics can feel overwhelming—especially for growing businesses.
Although some sellers choose to handle logistics in-house, doing so requires significant investment. You need trained professionals, licensed systems, and advanced infrastructure to ensure smooth operations, which often results in high operational costs.
This is where freight forwarders become invaluable. They allow businesses to ship internationally without dealing with logistical stress.
Before diving deeper into Amazon freight forwarding, let’s first understand what freight forwarding actually is, and why it’s essential for Amazon sellers.
What Is a Freight Forwarder?
A freight forwarder—also referred to as a forwarding agent or NVOCC (Non-Vessel Operating Common Carrier)—is an individual or company that organizes the transportation of goods from manufacturers to a final destination. This destination could be a customer, warehouse, or marketplace like Amazon FBA.
Freight forwarders specialize in managing shipping and storage on behalf of shippers. Their services typically include:
- Preparing export and shipping documentation
- Coordinating inland transportation
- Booking cargo space with carriers
- Warehousing and freight consolidation
- Negotiating shipping costs
- Managing cargo insurance and claims
Most freight forwarders issue their own bills of lading or airway bills, commonly known as house bills. Their overseas partners handle delivery coordination, document verification, and freight collection.
In simple terms, a freight forwarder manages your import and export process from start to finish, making international shipping far less complicated.
What Does a Freight Forwarder Do?
A freight forwarder acts as a link between the seller and the final delivery point. While they don’t physically transport goods themselves, they coordinate multiple transport methods, such as:
- Road freight
- Ocean freight
- Air freight for expedited shipping
Thanks to long-standing relationships with carriers, freight forwarders negotiate competitive rates and identify optimal shipping routes that balance cost, speed, and reliability.
They compare multiple options and select the best solution based on your shipment’s requirements. This helps ensure timely delivery while maintaining product safety.
Exporters often rely on freight forwarders for guidance with shipping regulations, documentation, and compliance. Their deep understanding of global trade laws, banking processes, and transport costs significantly simplifies exporting.
Services Offered by Freight Forwarders
Freight forwarders play a vital role in supply chain management by guiding sellers through each stage of transportation.
Their core services include:
- Shipment tracking and monitoring
- Ensuring timely pickup and delivery
- Negotiating transportation costs
- Managing export and shipping documentation
- Arranging warehousing
- Offering cargo insurance
They also handle customs-related tasks such as:
- Customs clearance
- Import/export documentation
- Customs insurance
Additionally, freight forwarders assist with carrier paperwork, bills of lading, storage solutions, and payment coordination.
Why Use a Freight Forwarder?
One of the biggest advantages of using a freight forwarder is the amount of time and effort it saves. They handle complex logistics while ensuring cost-effective and reliable shipping.
For businesses involved in international trade, freight forwarders are a crucial asset—especially when internal teams lack expertise in global shipping regulations.
By functioning as an outsourced logistics department, freight forwarders help eCommerce sellers scale efficiently while minimizing costs and errors.
Benefits of Working With a Freight Forwarder
Local deliveries may be manageable directly with carriers, but international shipping is a different challenge altogether.
A freight forwarding company offers expert support, documentation management, and operational guidance to ensure your goods arrive safely and on time.
Below are some major advantages:
1. Cost Efficiency
Freight forwarders provide competitive pricing based on shipment needs. They often reduce costs by consolidating shipments from multiple businesses heading to the same destination.
By combining cargo into shared loads, forwarders lower transportation expenses and pass those savings on to sellers.
Since shipping rates—especially ocean freight—fluctuate frequently, freight forwarders also provide real-time pricing instead of locking sellers into rigid contracts.
2. Customs Expertise
Freight forwarders stay up to date with international customs regulations. They manage tariffs, taxes, and required paperwork, reducing the risk of shipment delays.
Their knowledge ensures your goods don’t get stuck at ports due to incomplete or incorrect documentation.
3. Greater Control
Many freight forwarders specialize in specific transport modes or regions, allowing sellers to choose exactly which services they want to outsource.
With a clear understanding of your product type, forwarders select suitable carriers, routes, and handling methods to ensure timely delivery in good condition.
4. Value-Added Services
Freight forwarders often provide trade-related services such as:
- Preparing bills of lading
- Managing banking documents for payments
- Offering shipment insurance
These additional services make freight forwarding a comprehensive solution for international sellers.
How Do Freight Forwarders Charge for Their Services?
Freight forwarding costs depend on several variables, making pricing less straightforward.
Some forwarders bundle charges into one quote, while others list services as optional extras. In certain cases, a service may not be included at all.
That’s why it’s crucial to request a detailed cost breakdown before finalizing a forwarder. Reputable freight forwarders are transparent and happy to explain their pricing.
Below are common cost components you should review:
1. Carrier Charges
The cost of transportation depends on whether goods are shipped by sea, road, or air. Sea freight is generally the most affordable, while air freight is the most expensive.
Interestingly, longer distances don’t always mean higher costs—popular trade routes often have lower rates due to frequent traffic.
2. Container Costs
Ocean shipments are priced as:
- FCL (Full Container Load)
- LCL (Less than Container Load)
LCL is cost-effective for smaller shipments but involves additional costs for separating goods at the destination.
Air freight uses ULDs (Unit Load Devices), either as pallets or containers.
3. Cargo Type
Some goods are more expensive to ship due to special handling requirements. Perishable items, hazardous materials, and oversized cargo often require specialized containers or equipment.
4. Cargo Volume and Weight
Shipping costs are based on chargeable weight, calculated as the higher of actual weight or volumetric weight.
Even shipments with identical weights may differ in cost depending on the space they occupy.
5. Packaging and Palletization
International shipments must meet strict packaging standards. Certain freight forwarders charge extra for compliant packaging.
Improper packaging can result in returned shipments, significantly increasing costs.
6. Insurance
Cargo insurance protects shipments against loss or damage. Many freight forwarders offer insurance as an add-on.
Always confirm whether insurance is included or needs to be purchased separately.
7. Documentation Fees
Administrative costs usually cover documentation such as invoices, bills of lading, and export paperwork.
Restricted or hazardous goods may require additional documentation fees.
8. Destination Charges
Destination-related costs may include:
- Port handling fees
- Customs clearance charges
- Security surcharges
Additional costs can include warehousing, unpacking LCL shipments, and inland transportation.
9. Administration Fees
Freight forwarders charge an administration fee for coordinating logistics, communication, and compliance tasks.
This fee is part of the overall quote and should be reviewed carefully.
10. Extra Surcharges
Carriers may apply surcharges such as:
- Fuel surcharges (BAF)
- Currency adjustment factors (CAF)
- Peak season surcharges
- Demurrage fees
- Security or war-risk charges
11. Additional Services
Some freight forwarders manage the entire supply chain—from sourcing and packaging to warehousing and final delivery. When comparing quotes, always check what services are included to determine the best value.
Amazon Freight Forwarding and Hand-Carried Shipments
When using freight forwarding or hand-carry services, it’s important to follow Amazon’s policies:
- Amazon is not responsible for loss or damage after delivery to a forwarder
- Lost goods after receipt are entirely the seller’s responsibility
- Damaged goods may be refused upon delivery
- Sellers or forwarders with U.S. addresses can ship within the U.S.
- The exporter is responsible for all import/export compliance
- Amazon must not appear on export documentation
- Written authorization is required for sellers without a U.S. address
Customs, Duties, and Taxes
The shipment recipient is considered the importer and must comply with local laws.
International orders may be subject to:
- Import duties
- Local taxes
- Additional processing fees
These charges are determined after arrival and must be paid by the recipient. Amazon does not cover or estimate these costs.
Because customs regulations vary by country, sellers should consult their local customs office to avoid delays.
Final Thoughts
In many countries, customs authorities require importers to provide identification before releasing shipments.
This may include a Tax ID, Unique Identification Number (UIN), or similar documentation.
Countries that typically require importer identification include Brazil, China, India, Turkey, South Korea, Qatar, South Africa, and several others.
Proper planning and working with an experienced freight forwarder can help you navigate these requirements smoothly and keep your Amazon supply chain running efficiently.
