Exporters use the services of a forwarder primarily for convenience. New exporters can benefit from the services of a good and honest forwarder.

In less developed countries, it is a business practice that the exporter utilizes own contacts or sources of export services like trucking and customs declaration, especially in ocean shipments, instead of relying on the forwarder, which is the practice in developed countries.

Referring to Case Sample: Freight Consolidation (1), XY Consolidator may offer UVW Exports to transport their goods at US$70/CBM, including such charges as the inland freight (cartage) and handling, from UVW Exports' premises to Port B. If UVW Exports uses its own contacts in the forwarding instead of a consolidator, the freight rate of US$55/CBM from RS Shipping plus all other charges may amount to less than US$70/CBM. Exporters should always check the options.

Some importers may specify the forwarder to use for their imports. The international freight forwarder either has own office or a handling agent abroad.

In another instance, the importer, especially the new customer, may not inform the exporter that a forwarder will be involved in the delivery. The exporter becomes aware of such involvement only after receiving the letter of credit, in which a forwarder is specified. Such incidence must be avoided as the cost of exporting can be affected, for example, the diversion of cargo to another location designated by the forwarder, which may cost more.

The pattern of cargo reception and shipment has changed with the use of the freight container---container, box or LO/LO (lift on/lift off). The use of containers, which started more than 40 years ago, in intercontinental traffic is now available in most seaports worldwide.

In the 1960's, many seaports either had inadequate container facility or none at all. Consequently, export shipments often relied on conventional (break-bulk) vessels. The cargoes were placed alongside a vessel for hoisting on board. The stevedores (longshoremen) were often employed to carry cargoes on and off the vessel. The loading and unloading of vessels consumed too much time, which caused dockside bottlenecks and delayed shipments. With the increased use of containers, the congestion was decentralized. The problem of congestion was transferred from the docks or piers to the container freight stations or terminals.

ISO Freight Containers

The acronym ISO stands for the International Organization for Standardization, with headquarters in Geneva, Switzerland. The ISO freight container refers to a container complying with the ISO container standards in existence at the time of its manufacture.

Containers are available in configurations to take almost every kind of cargo and mode of transportation (ocean, air, road, and rail).

Containers for Intercontinental Use

In terms of the type of cargo for which the containers are mainly intended, they are classified as general cargo container and specific cargo container.

Unit Load Device (ULD)

The unit load device (ULD) is the air equivalent of the ISO container. Due to its unique shape resembling an igloo, the ULD is sometimes called the igloo (or iglu).

The air mode containers mainly are of the IATA (International Air Transport Association) types. The popular sizes of ULD include the IATA Type:

IATA Type
8   lower deck container,	60.4"	x  61.5"	x  64"
5   lower deck container,	88"	x  125"	x  64"
3   main deck container,	88"	x  125"	x  86"

Several other types of ULD are also in use worldwide.