Nominated Freight Forwarder
A nominated freight forwarder is a logistics provider chosen by either the buyer or the seller to manage a specific shipment under the terms of a trade agreement. Instead of the shipper selecting the forwarder, the appointment is made by the counterparty to ensure consistency, preferred service levels, or negotiated rates. This arrangement is common in international trade where buyers want greater control over transportation and costs.
Under this setup, the nominated forwarder coordinates transport bookings, documentation, and shipment handling according to agreed terms. The shipper cooperates by delivering the cargo to the forwarder at the agreed handover point. Clear communication is essential, as responsibilities may be shared between the shipper, buyer, and forwarder. Misalignment can lead to delays or confusion if roles are not well defined.
Nominated forwarders are often used with Incoterms such as FCA or FOB, where the buyer controls the main carriage. The forwarder acts as the buyer’s logistics representative, ensuring that transport, customs coordination, and delivery schedules meet expectations. This provides transparency and control over routing and service quality.
Overall, a nominated freight forwarder supports structured logistics coordination in international trade. It allows one party to maintain control over shipping while ensuring professional handling of the cargo. When roles and responsibilities are clearly agreed, this model improves efficiency and reduces disputes.
Frequently Asked Questions about Nominated Freight Forwarder
Clear answers to the most common questions people have when learning about Nominated Freight Forwarder.
To give the buyer or seller greater control over transport costs, service standards, and carrier selection.
Yes. The shipper must prepare the cargo, complete export requirements, and deliver the goods as agreed.
FCA and FOB often use nominated forwarders, as these terms allow the buyer to control the main transport.