in order to insure their inclusion in the monthly statistical reports. Freight Forwarders.-Freight forwarders are shippers' agents who handle their cargoes at the seaboard. Forwarders perform a useful function in facilitating the movement of goods from consignors in one country to consignees in another. Being in constant communication with steamship companies, they are able to supply information as to the best routes and lines, dates of ships' sailings and current freight rates. Freight forwarders book space on outgoing vessels, prepare documents to meet consular, customs and steamship companies' requirements, attend to the transfer of shipments from railroad cars to the piers and on board ship, if instructed to do so, and perform many other acts which may be necessary in connection with the handling of shipments. Forwarders often combine small shipments, thus being able to quote lower rates than those charged by steamship companies on small packages if each package is sent separately; they are of special service when it becomes necessary to reweigh, or recondition the goods or to repair any damaged packages which the steamship company refuses to take except on a "foul bill of lading." The forwarders often prepay freight, undertaking its collection from consignors; they handle refused shipments to the best interests of the consignors. The value of the freight forwarder's services to the shipper depends upon the extent and efficiency of his foreign connections, as in many instances goods are consigned to an inland importer and it devolves upon the forwarding house to make sure that the consignment is properly cleared at the port of entry and is shipped by the best available route to the place of destination. Some forwarders, particularly European firms, have extended their activities beyond their original and primary functions; they cash drafts drawn by the shippers against consignees, operate warehouses, issue foreign money orders and letters of credit, buy goods and ship them on their own FREIGHT FORWARDERS 325 account, represent insurance companies and steamship lines. While this may increase the forwarder's business, it should not be overlooked that by doing all these things, the forwarder enters into direct competition with other agencies, especially established to do this kind of work. Branching out into various activities means the spreading of capital and the scattering of effort; unless the freight forwarder possesses sufficient means, knowledge and experience, unless he can establish an efficient organization, he should not attempt to cover too much ground. As a rule, shippers will find it more advantageous to entrust the financing of business to banks and the insurance of goods to a competent insurance broker. Many of the larger steamship companies have established their own freight-forwarding departments, offering the services of these departments to shippers. Unless cargo space has been engaged in advance, the services of a reliable, independent forwarder seem to be preferable; a steamship company sometimes holds up consignments for its own ships, and the rates it charges are at times somewhat higher than those which a forwarder can obtain by offering the shipment to different companies and selecting the one whose charges are the most reasonable. Freight-forwarding functions have been also assumed by some export commission houses which compete for business with professional forwarders. One of the worst abuses which has crept into the forwarding business is speculation in ocean freight; it consists of buying or booking space on a ship for the purpose of reselling it to shippers at a more or less high premuim. Under such an arrangement consignees abroad pay a higher rate for transportation than the regular rate charged by the steamship companies; this naturally creates dissatisfaction and prevents the development of friendly commercial relations between consignors and consignees. Reliable freightforwarding houses do not engage in such gambling operations; they do honorable, legitimate work, the character of which has just been described and for which they receive a certain stipulated remuneration per ton of cargo. The extent of their commission fluctuates in accordance with the services performed. REFERENCES PRICE QUOTATIONS AND EXPORT ORDERS EDER, P. J. Foreign and Home Law. Course in Foreign Trade. Vol X, Chap XII HOOPER, F. and GRAHAM, J. Export and Import Trade. HOUGH, O. B. Practical Exporting, Chap. X. KIDD, H. C. Foreign Trade, Chap. VIII. NATIONAL FOREIGN Trade COUNCIL. American Foreign Trade Definitions. ROSENTHAL, M. S. Technical Procedure in Exporting and Importing, Chaps. I, II. SNIDER, G. E., MAULE, W. M., and MACELWEE, R. S. Paper Work in Foreign Trade. Bureau of Foreign and Domestic Commerce Miscellaneous Series No. 85. TOSDAL, H. R. Problems in Export Sales Management, Chap. VI. PREPARING GOODS FOR SHIPMENT. PACKING AND MARKING. BÄCHER, E. L. Export Technique. Course in Foreign Trade. Vol. IX, Chap. IX. BUREAU OF FOREIGN AND DOMESTIC COMMERCE. Packing for Export. DUDENEY, F. M. Exporters' Handbook and Glossary, Chap. XXX. HOUGH, O. B. Practical Exporting, Chap. XI. KIDD, H. C. Foreign Trade. Pp. 59-75. MARTIN, C. C. PRECIADO, A. A. TAYLOR, T. R. Export Packing, Chaps. I, II, IV-X. Exporting to the World, Chap. XIV. Stowage of Ship Cargoes. Bureau of Foreign and Domestic FREIGHT FORWARDERS DAILEY, B. C. Freight Forwarders. Address before the Foreign Trade Club of San Francisco. HENIUS, F. The A. B. C. of Foreign Trade, Chaps. X, XI. HOUGH, O. B. Practical Exporting. Pp. 401-409. HUEBNER, G. G. PRECIADO, A. A. Ocean Steamship Traffic Management, Chap. VI. ROSENTHAL, M. S. Technical Procedure in Exporting and Importing, Chap. IV. TALBOT, H. A. The Export Forwarder. Course in Foreign Trade. Vol. IV, Part III. TOSDAL, H. R. Problems in Export Sales Management. Pp. 568–577. WORLD'S MARKETS. Articles on: The Services of the Freight Forwarder. April, 1919. Freight Forwarding for Export. May, 1919. Foreign Freight Forwarders. June, 1921 CHAPTER XXIII IMPORTING Character of Imported Goods.-Imported goods may be divided into two classes, staples and specialties, the latter being also known as shopping line articles. A large part of the class known as staples consists of producers' goods, raw materials or semi-processed commodities, such as wool, rubber, wood-pulp, tin, seeds, fertilizers, breeding stock. These commodities are bought by farmers and manufacturers, the latter using them, either independently or mixed with domestic materials, in the making of finished articles. Some imported staples enter directly into consumption; among these are foodstuffs and beverages, such as coffee, cocoa, rice, bananas, pineapples, and other tropical fruits, as well as certain manufactures, like plain chinaware, kitchen utensils, and textiles. However, many kinds of imported consumers' goods belong in the class of specialties and novelties. They are creations of style and fashion, exclusive wearing apparel, millinery, laces, dress goods, and perfumes, face powders and soaps, in fancy receptacles, with fancy prices attached to them; scientific apparati and instruments of precision; statues, pictures, and thousands of articles of adornment and ornamentation. Seasonal commodities are often imported because they are ready for the market at different times in various regions of the world. Thus, when Europe and the United States are held in the grip of winter, the warm summer sunshine matures the crops of Australia, New Zealand, South Africa and the West Indies; the products of their fields, orchards and gardens are harvested and sent to northern markets, where they are eagerly bought. |