What are the differences between shipping agents and freight forwarders?

With the increasing volume of modern commodity transportation, the import freight forwarding industry in Lianyungang has become popular. However, do you know the difference between shipping agents and freight forwarders? Next, our Lianyungang freight forwarding company will introduce to you the differences between shipping agents and freight forwarders!

1、 Definition of Shipping Agents and Freight Forwarders' Equipment

A shipping agent is a unit that acts as an agent for business related to ships. Its scope of work includes handling water diversion, quarantine, tugboat, berthing, loading and unloading, materials, certificates, etc. The shipping agent is responsible for ship business, handling ship import and export procedures, coordinating with various departments of the ship and port to ensure smooth loading and unloading, and completing tasks assigned by the ship, such as changing crew members, materials, food supply, ship maintenance, etc. Sometimes the shipping company also entrusts the shipping agent to sign the bill of lading on their behalf.

Freight forwarder, literally, is the abbreviation for freight forwarder. From the perspective of job responsibilities, it is to accept the client's commission to complete a certain link or related link in the transportation of goods. Work related to this aspect can be directly or indirectly completed by finding freight forwarders, serving as a bridge and link between shippers and transportation providers.

Lianyungang import freight forwarder

2、 Main differences

Difference 1: Freight forwarders are freight forwarders, not actual carriers of shipping companies. Freight forwarders and logistics (third-party) are essentially the same as freight companies. Freight forwarders are different from shipping agents. Shipping agents can represent shipping companies in handling tasks such as booking, signing, modifying, and container loading, which are functions that freight forwarders do not possess.

Some students may ask, so freight forwarders can also book shipments. Here we will talk about the issue of freight forwarder booking.

As we all know, some freight forwarders can directly book cargo with shipping companies, and the freight forwarder referred to here is usually called the first generation.

So let me talk about the concept of a generation again here. I believe many students often hear people say that we are a generation.

The first generation here actually has two concepts. The current generation is the Non Vessel Operating Common Carrier (NVOCC), which can basically be said to be the first generation. The previous generation is a historical relic, which was once a state-owned enterprise. Non vessel operating common carrier (NVOCC) and first generation non vessel operating common carrier (NVOCC) brands can be owned by the same company at the same time, so it is common to see freight forwarding companies that are both first generation and non vessel operating common carrier (NVOCC); Non vessel operating common carriers (NVOCCs) and first tier freight forwarders are essentially the same. The former is approved by the Ministry of Transport, while the latter is approved by the Ministry of Commerce. The former can issue ocean freight invoices, while the latter can only use proxy invoices. Additionally, both can be invoiced in US dollars.

First level freight forwarders can directly obtain prices from shipping companies, but they may not necessarily be qualified to book shipping. Many shipping companies only designate a few freight forwarders as booking points, so it is not necessarily the case that first level freight forwarders are good at it. Most first level freight forwarders only limit their booking rights to a few shipping companies they are good at.

A first tier freight forwarder with booking rights may not necessarily receive good prices and services. In many cases, the booking freight forwarder may have to ask the freight forwarder (other first or second tier) who booked through them for the price and space. Here, the second tier is the well-known secret.

Regarding affiliation

Freight forwarder affiliation is normal, it doesn't mean that all affiliations lack strength, so don't just listen to that freight forwarder's affiliation and do whatever you want. Of course, if you are affiliated, don't insist that we are a first level office somewhere, and affiliation means affiliation. Also, don't think that just because we are first level doesn't mean anything. First level doesn't necessarily have the ability, but second level shouldn't think that you have some connections and do whatever you want. Understanding that shippers value whether you are a suitable freight forwarder for them;

So, when communicating with customers in daily life, we should be able to understand that what customers need is not just a generation

But rather a freight forwarder that is suitable for him and can provide the services he needs. At this point, everyone should understand that port freight forwarders are not necessarily first generation. It can be said that more than 90% of port freight forwarders are also freight forwarders or second-generation without booking rights,

Another special feature is that customs clearance companies are not necessarily customs brokers (companies), and freight forwarders can also apply. Some freight forwarders only do customs clearance work, while others do not; This kind of situation is very common

The shipper must book the shipment through the freight forwarder to the shipping company. Once the shipping company receives your shipper's order, it still needs to be done through the freight forwarder; Then the shipping agent will handle some tedious tasks related to the documents. The second generation cannot book shipping directly, it can be booked through the first generation, but the second generation can confirm the shipping cost with the shipping company.

Freight forwarders are rarely affiliated, with 60% of customs declaration and inspection being affiliated. Nowadays, freight forwarders have been liberalized, so the number of endorsements is decreasing. However, due to the characteristics of Xiaokuailing, many customs brokers rely on endorsements.

I believe you have gained some understanding of the difference between shipping agents and freight forwarders through the introduction of Lianyungang freight forwarders above! Professional Lianyungang freight forwarding companies, please look for Lianyungang Zhanhang International Freight Forwarding Co., Ltd!