Shipping Agent vs Freight Forwarder - What's The Difference?

In international cargo transportation, many people always confuse the difference between shipping agent and freight forwarder, and cannot tell the relationship between them! Today, STU Supply Chain will talk with you about the difference between shipping agent and freight forwarder.

In this Mexico trade guide is divided into 6 parts：

Shipping Agent vs Freight Forwarder - Different Between Concept

Shipping Agent vs Freight Forwarder - Different Between Responsibilities

Shipping Agent vs Freight Forwarder - Different Between Service Objects

Shipping Agent vs Freight Forwarder - Different Between Business Content

Shipping Agent vs Freight Forwarder - Different Between Contact Range

Shipping Agent vs Freight Forwarder - Other content

1. Shipping Agent vs Freight Forwarder - Different Between Concept 

Shipping Agent: It can also be called a shipping agency, that is, a company that acts as an agent for ship-related business. Its scope of work includes handling water diversion, quarantine, tugboats, berthing, loading and unloading, materials, documents, etc. The shipping agency is responsible for ship business, handling ship import and export procedures, coordinating ship and port departments to ensure smooth loading and unloading, and completing ship's commissioned matters, such as replacement of crew, materials, food supplies, ship repairs, etc. Sometimes the ship will also entrust the ship to sign the bill of lading on behalf of the ship.

Freight Forwarder: It can also be called freight forwarding or ocean freight forwarder, which refers to accepting the entrustment of customers to complete a certain link of cargo transportation or a link related to it. The work involved in this area can be directly or indirectly completed by looking for a freight forwarder. , in order to save capital, they serve the whole society and are the bridge and link between cargo owners and transport capacity providers.

2. Shipping Agent vs Freight Forwarder - Different Between Responsibilities

Shipping Agent: Shipping agent mainly provides a series of specific services for ships and shipping companies.

Freight Forwarder: It is essentially the same as third-party logistics. It is not the actual carrier of the shipping company, but the consignor of the cargo owner, helping the cargo owner handle the connection and communication of the goods in the import and export logistics.

3. Shipping Agent vs Freight Forwarder - Different Between Service Objects

Shipping Agent: Serving shipping companies, it is a bridge between shipping companies or carriers and ports.

Freight Forwarder: Serving the vast number of foreign trade, factories and shipper friends, it is the link between the shipper and the carrier.

4. Shipping Agent vs Freight Forwarder - Different Between Business Content

Shipping Agent: Shipping agency business is a comprehensive business with a wide range, including all the business that should be handled by the shipping company and a small amount of freight-related business that should be handled by the owner. The details are as follows:

(1) Ship entry and exit business

Such as handling customs and related port joint inspection procedures, dispatching tugboats for pilotage, berthing at ports, inspection and maintenance, cleaning or cleaning of cabins, fumigation and disinfection, marine rescue, maritime handling, and ship handover procedures in port, etc.

(2) Freight-related business

Such as arranging the loading and unloading of containers or other goods, carrying out tally, transit handover, storage and transportation, assisting in claim settlement, issuing bills of lading, charging fees, and paying fees on behalf of the shipping company, signing demurrage and dispatch agreements with the port on behalf of the shipping company, and Calculation of costs, freight forwarder, charterer, booking space and related work, etc.

(3) Supply business of marine materials and articles

Such as handling fuel supply for ships, providing fresh water, materials and food required by ships and crew, as well as purchasing and sending marine spare parts and other materials for shipping companies.

(4) Other service business

Such as handling entry and exit procedures for crew members, crew exchange, repatriation, medical treatment, tours, family visits, letter delivery, and other matters entrusted by the shipping company.

Freight forwarding: At present, a considerable number of freight forwarders master various means of transportation and warehouses for storing goods, and handle the transportation of goods including sea, land and air when operating their business. The business scope is as follows:

(1) Arrange suitable packaging of goods and choose the transportation route of goods in the fastest and most economical way of transportation;

(2) Suggest storage and distribution to customers;

(3) Choose a reliable and efficient carrier and be responsible for concluding a contract of carriage;

(4) Arrange the weighing and measurement of goods;

(5) Handling cargo insurance;

(6) Assembly of goods;

(7) Warehousing the goods before shipment or distribution at the destination;

(8) Arrange the transportation of the goods to the port, go through customs and related documents, and deliver the goods to the carrier;

(9) On behalf of the shipper/importer to undertake freight, customs duties and taxes;

(10) Handle any foreign exchange transactions related to the transportation of goods;

(11) Obtain various signed bills of lading from the carrier and deliver them to the consignor;

(12) Supervise the progress of cargo transportation and let the shipper know where the cargo is going.

5. Shipping Agent vs Freight Forwarder - Different Between Contact Range

The shipping agency generally has less contact. After all, the shipping agency mainly deals with shipping companies and ports; the freight forwarder has more contact with the ordinary people, because the freight forwarder mainly deals with the owner and the carrier. The number of shipping agents is not too large (compared to freight forwarding); the number of freight forwarding is overwhelming.

6. Shipping Agent vs Freight Forwarder - Other content

The number of shipping agents is not too large (compared to freight forwarding); the number of freight forwarding is overwhelming.

In short, the freight forwarder is mainly responsible for helping customers book space, trucking, customs declaration, towing, and is responsible for delivering the owner's goods to the ship. Shipping agency refers to the agency of the shipping company, which is responsible for helping the shipping company to accept the booking entrustment of each freight forwarder and allocate space.