Air freight forwarding is a complex but surprisingly relative simple enterprise. The process of air freight forwarding is uncomplicated. Air freight forwarders pick up freight and deliver it to a consignee or the party to whom the goods are shipped for those unfamiliar with the lingo of air freight forwarding. However, the complexity of air freight forwarding exists for the forwarder and in the forwarding part of the process. In many cases, air freight forwarders do not own the equipment of employ the personnel that carry out the basic functions to pick up, sort, transport, and deliver the freight. In many instances, the pickup is carried out by one company, the transportation is handled through another, and the delivery is performed by still a different company-none of which represents the air freight forwarder. Conventional air freight forwarders create loose non-contractual partnerships with local agents to represent them at airport cities by handling the pickup and delivery services, paying them by the pound and on a per shipment basis. The same forwarders also build relationships with airlines to carry freight between cities with airports. The entire process can be complex with a great deal of cumbersome and time consuming processes that are filled with the potential for error and poor communication. Currently FedEx and UPS are the two largest air freight forward carriers in the world. FedEx is the more unique of the two because it offered specialty overnight service years before UPS. FedEx is also unique because, the college paper submitted to his economics class at Yale University, which received a “C”, outlined the concepts for revolutionizing the air freight forwarding industry by its current President and founder, a taciturn, ex-marine, named Fred Smith.
The different modes of transportation used are the aspect which separate freight forwarders. However, there is overlap among freight forwarders. For exa...