Freight forwarding represents a critical backbone of global trade, serving as the essential link between suppliers, manufacturers, and consumers across international boundaries. This complex process involves coordinating and facilitating the movement of goods through multiple transport modes, handling documentation, and navigating customs requirements. As global trade patterns evolve and digital technologies transform logistics operations, the freight forwarding industry is experiencing significant changes that present both challenges and opportunities for stakeholders throughout the value chain
The freight forwarding value chain encompasses five interconnected stages that guide cargo from origin to destination. Beginning with booking, consignors select forwarders, fill shipment details, receive quotations, and process payment arrangements. The haulage and stuffing phase involves complying with packaging requirements, transferring cargo to origin warehouses, and loading containers according to FCL/LCL requirements. During export documentation, forwarders verify supporting documents, establish payment terms, and inspect cargo against inventory lists, while handling critical paperwork including commercial invoices and certificates of origin.
Import documentation involves reviewing supporting documents, damage assessment, finalising carrier bills, and securing customs clearance as cargo is unloaded at destination ports. The final stage, import haulage and payment, covers the transfer of cargo from the forwarder's warehouse to the destination, final inspection by the consignee, and cargo payment from consignee to consigner, completing the comprehensive end-to-end process that enables global trade operations.
India's air and ocean freight markets are experiencing robust growth driven by several key factors across both sectors. In the air freight segment, e-commerce is projected to grow fivefold to reach approximately US$ 200 billion by CY26, while pharmaceutical exports grew by 18% in FY20. The industry is rapidly embracing digitisation and emerging technologies to enhance efficiency and reduce costs, while the National Air Cargo Policy 2019 aims to position India as a premier air freight market by CY25, capitalising on the country's strategic location as a transit hub between Europe and Southeast Asia. The ocean freight market is equally dynamic, with major ports launching seven projects through public-private partnerships in FY22 and the Union Budget CY21 allocating a subsidy of approximately 1,624 crore rupees to Indian shipping companies. External trade growth is driving significant expansion in India's port sector, with containerised traffic across all ports reaching 246 million metric tonnes in FY20. India's extensive coastline stretching over 7,517 kilometres with more than 200 ports provides strategic advantages, as the majority of cargo ships from East Asia, America, Europe, and Africa transit through Indian territorial waters. |