The Role of Forwarders in Supply Chain Risk Management

In just a short span of time, a series of serious maritime accidents have occurred, disrupting global supply chains and causing significant damage to businesses. From the DALI vessel crashing into a port bridge in Baltimore (USA), which paralyzed the port for weeks; to the ONE Apus losing over 1,800 containers in the middle of the Pacific Ocean—an incident with estimated losses in the hundreds of millions of USD. Most recently, on May 25, the MSC ELSA 3 capsized and sank off the coast of India, carrying more than 640 containers, including hazardous goods and industrial chemicals that pose a severe risk of marine pollution.

A photo shows the vessel listing at sea. Photo: The Hindu

These incidents once again sound the alarm on the significant risks in ocean freight—where even a single unexpected event can have severe consequences for the environment, the economy, and import-export businesses themselves. Even with cargo insurance in place, companies still face substantial losses in terms of time, costs, and preparation efforts—virtually “swept away” along with the containers lost at sea.

For situations involving cargo falling overboard, you can refer to this article for detailed insights and recommended handling procedures.

So, what can businesses do to prevent and minimize risks from offshore accidents like these? The answer lies in the strategic role of the Forwarder.

Forwarder is the party that acts on behalf of the business to organize and manage the transportation process.

Who is a Freight Forwarder?

A Forwarder (also known as a freight forwarding company or international shipping agent) is an organization or individual that specializes in providing services to support the import and export of goods. A Forwarder acts as a bridge between exporters and importers, facilitating the international transportation process efficiently and safely. In addition to handling the transportation itself, Forwarders also assist with administrative procedures, customs clearance, insurance, and other supplementary services related to international trade.

Forwarders do not own the transport vehicles themselves. Instead, they coordinate with shipping lines, airlines, transport companies, and other logistics service providers to carry out the shipment. Simply put, a Forwarder represents the business in organizing and managing the entire process of cross-border cargo transportation.

Perspectives and responsibilities of a Forwarder

Here’s an overview of KVN Logistics’ approach and key responsibilities when acting as a Forwarder on behalf of our clients.

1. Consulting on optimal transportation solutions

Forwarders possess in-depth knowledge of shipping routes, carriers, local regulations, and other logistics-related factors. This allows them to advise businesses on the most suitable shipping plans—balancing cost, time, and risk levels.

Example: When there’s news of port congestion or adverse weather, a forwarder can suggest rerouting or delaying shipments to avoid risks such as delays or lost cargo.

2. Document checking and regulatory compliance

Forwarders assist businesses in reviewing documentation (invoices, packing lists, certificates of origin, MSDS, etc.) to ensure compliance with customs and quarantine regulations in both exporting and importing countries. This reduces the risk of fines, cargo holds, or returns.

3. Tracking and shipment status updates

Through tracking systems and direct coordination with carriers, port agents, and bonded warehouses, forwarders help businesses stay updated on cargo status—especially in high-risk scenarios such as transshipments, connection delays, or port hold-ups.

4. Advising and supporting cargo insurance

While not insurance providers themselves, forwarders help businesses choose the right type of cargo insurance and clarify coverage terms (All Risks, ICC-A/B/C), including what is and isn’t covered for compensation.

5. Incident and claim handling

In cases of incidents like dropped containers, damaged goods, vessel delays, port congestion, or unusual inspections, forwarders act directly with carriers, ports, and insurance companies to resolve issues quickly—minimizing damages and wait time. That’s why selecting a forwarder with a professional, 24/7 support team is crucial for businesses needing real-time updates and urgent assistance.

6. Risk mitigation through experience and partner networks

Experienced forwarders often have an extensive partner network (including memberships in associations like WCA, Neptune...), enabling them to quickly adapt or reroute cargo during emergencies. Moreover, reputable forwarders maintain strong relationships with global carriers, making it easier for businesses to negotiate pricing or request changes—such as COD (Change of Destination)—when needed.

Recently, KVN Logistics officially became a member of Neptune Cargo Network — one of the world’s leading LCL & NVOCC shipping networks, with over 300 members from more than 70 countries. KVN is committed to expanding and enhancing its capabilities to provide the most dedicated support to our customers!

Contact KVN for expert consultation on optimal transportation and insurance solutions, so you can confidently conduct international trade!

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KVN Logistics

Head Office:No. 41 Nguyen Trai Street, Phan Dinh Phung Ward, Nam Dinh City, Nam Dinh Province, Vietnam.

Hanoi Office:36th Floor, Discovery Complex, 302 Cau Giay Street, Dich Vong Ward, Cau Giay District, Hanoi.

Hai Phong Office:Room 740, Thanh Dat 3 Building, No. 4 Le Thanh Tong Street, Ngo Quyen District, Hai Phong.

Ho Chi Minh City Office:6th Floor, UOA Tower, No. 6 Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City.

Tel: +(84) 02871013998

Email: info@kvnlogistics.vn

Tax ID: 0601231322.