Difference between Freight Forwarder and Shipping Agent

The Role of a Freight Forwarder

Freight forwarders are organisations that serve to arrange shipments for individuals and companies and may also be the carrier themselves. Often times, they are the link between individuals or organisations who need to ship goods and the carriers, assisting along the way to ensure that no logistical hiccups occur. In addition, they usually provide extra services in the form of advising on packing, completing the necessary paper, providing insurance coverage and may or may not include custom clearing services.

The Role of a Shipping Agent

A shipping agent is an individual or organisation that is deemed responsible for the handling and transportation of cargo with the general interest of its customers in mind. They oversee tasks ranging from crew transfers on the ship, custom clearance and waste declaration to the despatching of vessels.

Differences between Freight Forwarder and Shipping Agent

  • Types of Services Offered

    Oftentimes, a professional freight forwarder will provide services which are outside the scope of a shipping agent. For instance, a freight forwarder will often see the cargo through the entire process from door to door sea freight services. While a shipping agent may only be concerned during the process when the cargo is consolidated to the time when the cargo is deconsolidated. Furthermore, a freight forwarder often provides multi-modal transportation options to facilitate this while a shipping agent will often specialise in a certain mode of transportation, be it via ship or other means.

  • Ownership of Vessel and Facilities

    Freight forwarder’s ownership of certain warehousing facilities or shipping vessels allows them to dictate better rates for customers.

In essence, all freight forwarders are shipping agents as they provide ancillary services that complement the transportation of cargo from one point to another. However, not all shipping agents are freight forwarders as freight forwarders are able to oversee the transportation process from door-to-door. In addition, freight forwarders are usually larger organisations with a greater access to resources compared to an ordinary shipping agent.

Similarities between Freight Forwarder and Shipping Agent

  • Competitive Rates

    Both organisations may or may not own the vessel itself. In the event that it does not, they will rent out space from the shipping line, break it up and offer it to customers who require it. Apart from that, they can also negotiate on behalf of the customers with shipping lines to obtain the most competitive rates and source out the most economical route to take.

  • Cargo Consolidation

    Both organisations are often equipped to offer both Full Container Loading (FCL) and Less Container Loading (LCL) by helping to consolidate goods in a warehouse prior to loading it in a container.

  • Custom Documentation

    Both organisations are well-versed in the regulations of international shipping and can often advise on custom clearances procedures either by having an office in the country you intend to export to or by liaising with a custom clearance service provider in that country. Hence, ensuring that your cargo is sent over without facing any issues.

  • Shorter Transport Time

    During the transportation phase, both entities will be accountable for any loss or damages. Furthermore, the owner of the goods can authorise the forwarder/agent to sign on their behalf to expedite any processes along the way, without the need of the owner to physically be there. However, the degree to which this autonomy is given is often listed out in the agreed contract prior to the shipment. For instance, some agents may be allowed to make decisions by themselves before informing the owner as long as it serves the interests of the owner while others may be required to inform the owners before taking any action whatsoever.

Why choose M&P International Freight?

M&P International Freight is a one-stop shipping solutions company located in Singapore who primed and ready to meet the transportation needs of international clientele.

 

One Stop Shipping Solution

Here at M&P International Freight, we offer a large array of services that range from sourcing for the most economical and reliable routes to providing warehouse rental and custom clearance services to ensure that you are hassle-free throughout the entire process.

Professional and Reliable

Having been in the service for a decade, we have groomed and assembled a team of professionals to meet your every need. Our team has overseen all kinds of cargo transportation requests all over the world and helped to facilitate many successful shipments over the years. With that, we are dedicated to providing a high quality service that is guaranteed to deliver.

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