Freight Forwarder vs Shipping Agent – What’s The Difference?
Differences Between A Freight Forwarder and A Shipping Agent Both freight forwarder and shipping agent deal with logistics in companies. However, the roles of a freight forwarder vary from those of a shipping agent. How to differentiate a forwarding agent from a shipping services provider If you are a forwarding expert, you will be handling some of the tasks meant for a shipping expert as should offer assistance in the transportation of cargo. However, you will find that the main difference between a shipping services provider and a forwarding agent is: Types of services offered Many people confuse the services offered by sea freight forwarders with those functions accomplished by the shipping-agent. But in an ideal situation, sea freight will perform and provide services over and above the shipping-agent's services. One of the essential functions of a freight-forwarder is to oversee the entire cargo movement from the shipping service provider like LCL & FCL shipping provide up to the importer's doorstep. On the other hand, the shipping-agent gets involved during cargo consolidation, and finally, he will be available during the deconsolidation process. Freight forwarder such as LCL & FCL shipping are heavily involved in cargo transportation services, while shipping-agents only specialize in one mode of transport to move your cargo from one point to the next. The duties of a forwarding agent include overseeing the success of the entire shipping process unlike for the shipping services provider whose roles and responsibilities are limited to their scope which includes cargo consolidation. Mode of transport You will find shipping experts specialize in one mode of transport while a forwarding agent can provide a wide range of transportation services. You will find that you will have more benefits when dealing with a forwarding agent as there is access to many freight shipping vehicles and storage facilities as compared to the shipping experts. Value-added services Freight-forwarders use their network within their service providers' domain to provide all the necessary services that facilitate transportation of goods from one point to another. They are known to offer export and import services through sub-contracting other related companies. As a result, they create firm business ties with companies that own trucks, custom brokers, warehousing, and other necessities that shippers might require. This mode makes the processes, especially when working freight-forwarders, since much of the time is secured, which would track down valuable primary services from several clients. On the other hand, shipping-agents cannot offer the mentioned value-added services. Their crucial role gets primarily channelled to the relocation of containers in a ship. They may sometimes track cargo from one point to another, moving cargo from port to its desired destination. They do not offer services like documentation and customs clearance. Ownership of vessels Air Freight do not possess the ownership of vessels used for shipping or carriers. They operate by space sub-leasing for cargo carriage in a ship or containers. This process indicates that freight-forwarders work as an intermediary amongst professional shipping lines and business owners. Air freight may merge…