mple, air freight forwarders like UPS and FedEx also use trucks, while ocean freight forwarders rely on rail. However, each forwarder to remain competitive has its own particular specialization. For instance, FedEx is devoted mainly to specialty service in terms of time-frame for delivery and they focus on freight that is basically under 70 lbs. while UPS regularly carries much heavier freight. A forwarder acts in a dual role because it represents a shipper to the carrier and a carrier to the shipper. Traditionally, freight forwarders must offer assembly, breakbulk, consolidation, and distribution. There are also external factors which regulate the industry, such as government regulations that affect both air transportation and cargo regulations, “Forwarders must keep up to date on regulations affecting cargo movements such as foreign documentation requirements, hazardous materials rules, US government regulations, special packaging or handling restrictions, and any applicable licensing provisions. Forwarders coordinate arrangement for storage, pick-and-pack operations, consolidations or full-container movements, as well as inland transportation to provide clients with door-to-door service. Other services might include warehousing, crating, binding, shrink and marking and labeling” (Richardson 81). Other considerations include liability. Shippers generally assume liability for the shipper’s freight but agents pass the responsibility to air carriers.
Because of the growing scope of global trade, air freight forwarders have been scrambling to form strategic alliances, make acquisitions and expand their services because of increased competition and opening markets. Many have predicted that the demise of the small to mid-sized forwarder is inevitable in the face of market changes which have the air freight forwarding industry in a state of flux. There any many market forces which have driven this change in the air fre...