Road transport can be classified as transporting either goods and materials. The major advantage of road transport is that it can enable door-to-door delivery of goods and materials and can provide a very cost-effective means of cartage, loading and unloading.
Delivery of goods between cities, towns and small villages is made possible only through road transport. Rates for road transportation are also unstable and unequal.
What difference does it make if the forwarder is selected by the supplier or by the buyer?
A forwarder works for, and is responsible to its principals, i.e. those from whom a mandate is received and who pay for its services. In a CFR or CIF contract, the forwarder selected by the supplier has no obligation towards the buyer on behalf of whom shipment is made, rather is responsible to carry out the instructions received from the client, the supplier. Often, in a CIF or similar contract, the name of the forwarder who actually handled dispatch is not known to the buyer. A forwarding agent appointed by a buyer is in fact the buyer’s representative on the spot, with the specific mandate to look after the interests of the principals, the buyer, and not after the supplier’s interest.
This can be very important should an incident occur at the time of delivery. The forwarder employed by a supplier may hesitate before making a claim against that supplier, while the forwarder appointed by a buyer may readily do so. Forwarders appointed by buyers can also perform other functions such as: keeping in touch with suppliers and sending them reminders when orders are falling behind their deliveryschedule and consolidating orders for joint dispatch, thus reducing overall cost of transportation and facilitating receipt of orders at destination by making one instead of several shipments.