Why the forwarders’ certificate of receipt is arguably the most vital piece of international freight documentation

The crucial role of the forwarders’ certificate of receipt in international freight 

When it comes to freight forwarding solutions and the transport documentation associated with them, it can be easy to become confused or overwhelmed. However, one piece of such documentation that shouldn’t be overlooked, is the forwarders’ certificate of receipt, or FCR. 

The forwarders’ certificate of receipt is also sometimes referred to as the forwarders’ cargo receipt; it is a document that a freight forwarder issues to a shipper, constituting certification of the receipt of cargo. 

FCRs are international trade documents, issued by members of the International Federation of Freight Forwarders Associations, or FIATA, a non-governmental organisation that represents forwarders from around the globe. 

What is the purpose and benefit of an FCR? 

In an era in which so many operations to transport shipments from one part of the world to another are highly intermodal, freight forwarding companies play a crucial role as coordinators of such journeys. 

When, then – as an individual or organisation that is looking to move goods from one jurisdiction to another – you receive an FCR from a freight forwarder, this will serve as proof that the forwarder has accepted your shipment.

Indicated on the FCR will be a consignee – in other words, the person to whom the goods are being sent, and who will be the importer of record for the shipment. The FCR will come with irrevocable instructions to deliver the goods to the stated consignee. 

One advantage an FCR can offer, is the opportunity for payment to happen faster. You might, for instance, be selling to a purchaser in another country, and your contract with this buyer may stipulate that the goods are collected from the factory, with the buyer being responsible for organising the freight. 

If the above describes a particular transaction of yours, it will be possible for an FCR to be issued once the buyer’s forwarder has collected the goods. You will then be able to present the FCR for payment, without needing to wait for the issuance of a non-negotiable or negotiable transport document (the proof of the shipment having been loaded onto the transport conveyance for the main international carriage). 

The non-negotiable nature of an FCR means it features an unchangeable destination. This makes it different to a forwarders’ certificate of transport, which is negotiable. By this, we mean that with the latter document, the forwarder will accept responsibility to deliver to whatever destination you specify, unlike the situation with an FCR. 

Would you appreciate further help and advice on freight documentation? 

The question of which forms of documentation will be relevant or needed for which freight shipments, is one that you might be less than sure about when it comes to your own goods that you are looking to have transported between locations.

To learn more about how we can help with our leading freight forwarding solutions in the UK, Europe, and beyond, please don’t hesitate to reach out to the KTL UK team by phone or email today.  

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