When it comes to shipping agents and freight forwarders, many people are confused about their roles and responsibilities. Here we explain the difference.
Shipping Agent:
A shipping agent is an agent of a shipping company who provides services on behalf of the shipping company at ports or destinations.
The shipping agency is responsible for handling the work directly related to shipping, such as booking, signing documents, loading and unloading goods, etc.
At the port, the shipping agency coordinates the docking of ships, loading and unloading of goods, maintenance of ships and goods, and other port services. Shipping agencies deal directly with shipowners, crew members and other parties involved in the operation of ships.
Freight Forwarder:
A freight forwarder is an independent third party company that is not part of a shipping company and works with several transport companies.
The freight forwarder is responsible for the entire transport process of goods from the point of origin to the point of destination, including the combination of different modes of transport.
Freight forwarders provide a variety of services, including booking space, customs clearance, cargo storage, cargo insurance, transport planning and more. Freight forwarders' customers are usually shippers who entrust the forwarders with the entire transport and related affairs of the goods.
The Main Differences Are:
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1. Different Definitions:
Freight forwarder, also known as freight agent. In logistics and transport, one or more links of goods are completed by the agent. The work of international freight forwarders includes sea transport, import and export, customs clearance and import declaration.
shipping agent, it includes the procedures and coordination work related to ship operations and ultimately ensures the smooth completion of cargo loading and unloading. The work usually carried out by the ship's agent includes quarantine, towing, loading and unloading goods and signing bills of lading on behalf of clients.
2 . Different Responsibilities:
Freight forwarder, essentially the same as third party logistics, are not the actual carriers of shipping companies, but clients of shippers who help shippers connect and communicate in all aspects of logistics.
The shipping agent mainly provides specific services to ships and shipping companies.
3. Differences in Service Objects:
Freight forwarder: It is the link between the cargo owner and the carrier for domestic and foreign traders, factories and cargo owners.
shipping agent: It serves the shipping company and is the bridge between the shipping company or carrier and the port.
4. Forwarder Level:
Freight forwarder: Generally divided into first level agents and second level agents. First level agents can book space directly with shipping lines. When choosing a freight forwarder, it is important to consider the qualifications and capabilities of the company. Not all freight forwarders are all-rounders and not all areas of work are consistent.
Shipping agent: LCL bookings are made by freight forwarders and shipping companies generally do not accept them, so the bill of lading is generally not from the shipping company.
Both shipping agents and freight forwarders play a key role in the international transport of goods, providing services to cargo owners through their expertise. There may be some overlap between shipping agents and freight forwarders in terms of document handling, customs clearance, insurance and other aspects.
In general, shipping agents focus more on work directly related to ships and ports, while freight forwarders are responsible for coordinating and managing the entire cargo transport process.
Freight forwarders' services are more comprehensive and include several modes of transport, while shipping agents focus on maritime transport.
In practice, shippers usually work with freight forwarders to ensure the efficient and safe movement of goods around the world.
As a logistics company with a century-old brand heritage, PGS Logistics can provide personalised and highly competitive logistics solutions to global customers with more than 200 years of global shipping experience and a strong logistics network. If you have a freight requirement, please contact us!
