What is the difference between freight forwarders and shippers?

Aug 08, 2024

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1, Definition and role positioning
Freight forwarder: Freight forwarder, also known as freight forwarder, is an organization or individual specialized in freight forwarding services. They accept commissions from shippers or other clients to provide comprehensive services for cargo transportation, including but not limited to booking, warehousing, customs clearance, inspection, insurance, transportation arrangements, cargo tracking, etc. As an intermediary, freight forwarders coordinate the relationships between carriers, shippers, customs, inspection and quarantine agencies, and other parties to ensure that goods can be safely, timely, and economically delivered to their destination.
Consignor: The consignor refers to the person or organization who hands over the goods to the carrier for transportation. In a contract of carriage of goods, the shipper is a party to the contract, responsible for providing the goods and paying the freight according to the contract. The main responsibilities of the shipper include providing accurate information about the goods, handling necessary export procedures, and ensuring that the packaging of the goods meets transportation requirements.
2, Responsibilities and Business Scope
The responsibilities of a freight forwarder: The responsibilities of a freight forwarder are extensive and complex. They not only need to develop transportation plans according to the shipper's requirements, but also be responsible for booking, arranging transportation vehicles, coordinating loading and unloading operations, and handling customs declaration and inspection procedures. In addition, freight forwarders also need to pay attention to safety issues during the transportation of goods, ensuring that the goods are not lost or damaged during transportation. At the same time, freight forwarders also need to provide cargo tracking services and promptly report the transportation status of goods to shippers.
The responsibilities of the shipper: The main responsibilities of the shipper are relatively simple and clear. They need to provide true and accurate information about the goods, including the name, quantity, weight, volume, packaging method, etc. In addition, the shipper is required to pay the freight according to the contract and complete necessary export procedures, such as applying for an export license and obtaining a certificate of origin. The shipper also needs to ensure that the packaging of the goods meets the transportation requirements to avoid damage or leakage during transportation.
3, Relationship with customers
The relationship between freight forwarders and customers: Freight forwarders usually establish long-term and stable cooperative relationships with customers. They help customers reduce logistics costs and improve logistics efficiency by providing professional logistics services. The communication between freight forwarders and customers is frequent and in-depth, and they need to understand their needs and expectations in order to provide customers with more personalized and customized services. At the same time, freight forwarders also need to report the transportation status and problems encountered to customers in a timely manner, so that customers can understand and make corresponding decisions in a timely manner.
The relationship between the shipper and the customer: The relationship between the shipper and the customer is relatively simple. In international trade, the shipper is often the seller or exporter of the goods, while the customer is the buyer or importer of the goods. The shipper shall deliver the goods to the carrier for transportation in accordance with the contract, and bear the corresponding freight and export procedure fees. The customer is responsible for receiving the goods and paying for the goods.
 

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