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Former Member

Difference between Freight order and Forwarding order in TMS

Hi All,

I am new to TM.

Can anyone please shed some light on what is difference between Freight order and Forwarding order in TMS terms?

I am assuming that a Forwarding order is an order( like sales order) which is provided by Forwarding agent to Shipper and that Freight order is provided by carrier confirming the freight charge! ( Just my assumption)

Can any one please help me in giving a difference between these two?

Thanks,

Ajay Kaushik

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5 Answers

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    Former Member
    Sep 17, 2013 at 12:00 PM

    Hi Ajay

    Here is the definition...

    Forwarding Order - is an order from an ordering party to a carrier or logistics service provider to transport goods from a shipper to a consignee in accordance with agreed terms and conditions.

    Freight Order - is an order whose execution is planned by a carrier or the shipper. The order contains the following:

    • Plan for the logistical processing, for example, when and onto which vehicle freight units are to be loaded
    • Planned departure times for the vehicle

    • Execution data

    So, forwarding order is a manual order on TM which is usually used by a 3PL or LSP using TM. Shipper usually use the integration with the ECC and creates an OTR on TM from a sales order, purchase order or sto.

    Regards

    Eduardo Chagas

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    Former Member
    Sep 17, 2013 at 11:35 AM

    Hi,

    a LSP receives an order by a shipper to transport goods for him. This is the Forwarding Order in the system of the LSP. It is the Freight order in the shipper's system.

    regards, Holger

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    Former Member
    Sep 17, 2013 at 11:39 AM

    Hi

    When an LSP ( say freight forwarder) receives an order from the shipper, the same is entered in the LSP's system as a forwarding order. If the LSP or Shipper hires a carrier to ship the goods then they will issue a freight order to the carrier.

    Thanks

    Ganapathy

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  • Sep 17, 2013 at 12:53 PM

    Hi Ajay,

    Forwarding order is TRQ object (Technicall name) in TM which is created with respect to customer.

    Forwarding order is created by LSP or freight forwarder when order has been placed or received from customer.

    In Forwarding order contains the transportation leg(stages) between shipper and consignee.

    These transportation legs could be Road, Rail / Ocean / Air. we call them as stages / stops.

    They are separated in to different carriages such as Pick-ip, Pre-Carriage, Main Carriage, On-Carriage and Delivery.

    For each carriage / stage has Source location and destination location.

    Carrier will take care of transporting these goods from one location to destination location for each stage.

    Freight order is TOR object (Technical name) in TM which is created with repsect to carrier.

    Freight order is created for mainly for carriages such as Pickup, Pre, On and Delivery.

    There is another TOR object which is called as Freight Booking which is created for Main carriage.

    Hope above information helps you to understand.

    Thanks,

    Bharath.

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    Former Member
    Oct 01, 2013 at 10:44 AM

    Thanks to all of you

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