T4216 - Forwarding companies and warehousing as a business

Industry code: T4216
Premium rate: 2.99

Classification Facts

Class: T - Transportation, Warehousing
Rate Code: T42 - Transportation, Courier, Commercial Bus
Subcode: 16

Description

Operational Details
Freight forwarding is similar to expediting, with the exception that the forwarder specializes in handling overseas, out of province, and out of country shipments. They coordinate and make travel arrangement for the goods, completing all the documentation for customs, excise taxes etc. While an expeditor also arranges shipments, it is usually a service offered only on a local, or in-province basis. The freight forwarder contracts a long distance hauler, aircraft, or courier company to deliver the item to its destination, or to a pre-arranged point, where another carrier picks it up and delivers it to the destination point.

The freight forwarder not only arranges the shipment, but also takes responsibility for delivery. If any problems develop, the customer holds the forwarder responsible, not to the actual carrier. A forwarder may have a warehouse where the customer can deliver their goods for shipment. The forwarder arranges for a local carrier to pick up items and deliver them to their warehouse facility for short term storage. The forwarder has an advantage over transportation companies because they often have better knowledge of other jurisdictions transportation regulations and Canada Customs requirements.

SIC Codes
000000826 - Forwarding company
000000827 - Warehousing

Previous Codes

NAICS 2007
Code: 48851 - Freight Transportation Arrangement
49311 - General Warehousing and Storage