Get to know the vital terms of Logistics and Supply Chain Management.
An FCR is a freight forwarder’s certificate of receipt. It is an official paper issued by the freight forwarder to the shipper. The freight forwarder’s cargo receipt proves that the goods have been received and that the freight forwarder assumes responsibility for the proper handling of the goods. The FCR is an important document in the logistics and shipping system because it is a means of ensuring transparency and guaranteeing that the freight forwarder holds the cargo.
Essentially, the FCR should confirm that the goods are received by the freight forwarder. This assures the consignor of the cargo’s custody with the forwarder and that the shipping process can continue under the agreement.
The FCR states that the forwarder accepted responsibility for the cargo. That therefore means that the forwarder assumes to carry, convey, and deliver the goods through proper handling to the consignee or the next point in the supply chain.
FCR is, on the other hand, not a negotiable document just like a Bill of Lading. Rather than transferring or endorsing to another party, it is simply a receipt and acknowledgment of responsibility between a freight forwarder and shipper.
The FCR settles the shipping process since it stamps an indisputable record of handing over goods to the freight forwarder. Specifically, where a shipper needs confirmation of goods in transit but will not require the document to act as a title for the goods.
A cargo receipt by a forwarder is one of the most important documents in shipping and the logistics industry. It is evidence of proof that the freight forwarder has received the cargo, and it will confirm the responsibility of the forwarder concerning handling and delivering the shipment. The document does not function as a title of ownership, but it does give the shipper peace of mind and restates accountability in the chain.