What is the difference between shippers and freight forwarders?

Jun 17, 2024

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1, Definition and Overview
Shipper
The shipper, also known as the shipper or cargo owner, refers to a natural person, legal entity, or other organization that hands over the goods to the carrier for transportation. The shipper is the owner or actual controller of the goods, who signs a transportation contract, hands over the goods to the carrier for transportation, and pays the corresponding freight.
Freight forwarder
Freight forwarders, also known as freight forwarders or logistics agents, are third-party service organizations specialized in organizing, coordinating, managing, and controlling cargo transportation. As a bridge between shippers and carriers, freight forwarders assist shippers in completing the transportation tasks of goods by providing professional logistics services.
2, Responsibilities and Functions
The responsibilities and functions of the shipper
The main responsibility of the shipper is to select a suitable carrier, sign a transportation contract with them, hand over the goods to the carrier for transportation, and pay the corresponding freight. The shipper needs to ensure that the packaging, labeling, and quantity of the goods comply with relevant regulations in order for the goods to be transported smoothly. In addition, the shipper also needs to purchase corresponding insurance for the goods to cope with potential risks during transportation.
The responsibilities and functions of freight forwarders
The main responsibility of a freight forwarder is to provide customers with comprehensive logistics services. They need to understand the customer's needs and the characteristics of the goods, and develop reasonable transportation plans for the customer. Freight forwarders are responsible for communicating and coordinating with carriers, customs, inspection and quarantine agencies, and other parties to ensure that the goods can smoothly pass through various links. In addition, freight forwarders can also provide value-added services such as cargo tracking, customs declaration, inspection, warehousing, and insurance to meet the diverse needs of customers.
3, Rights and Obligations
Rights and Obligations of Shippers
The shipper's rights include requiring the carrier to transport the goods to the destination at the time, place, and method specified in the contract, and to pay the corresponding freight. The shipper's obligations include ensuring that the packaging, labeling, and quantity of the goods comply with relevant regulations, purchasing corresponding insurance for the goods, and providing necessary transportation information and documents.
Rights and Obligations of Freight Forwarders
The rights of freight forwarders include charging service fees to customers, requesting them to provide necessary transportation information and documents, etc. The obligations of freight forwarders include providing professional logistics services to customers, ensuring smooth transportation of goods, communicating and coordinating with all parties, and protecting customer trade secrets.
4, Relationship with customers
Relationship between shipper and customer
Shippers are usually the owners or actual controllers of the goods, and their relationship with customers is mainly based on sales contracts or transaction relationships. The shipper needs to ensure that the goods can be delivered to the customer according to the time, place, and method specified in the contract, and bear corresponding breach of contract responsibilities.
The relationship between freight forwarders and customers
The relationship between freight forwarders and customers is mainly based on logistics service contracts. Freight forwarders need to provide professional logistics services to customers to ensure smooth transportation of goods and assume corresponding service responsibilities. At the same time, freight forwarders also need to maintain close contact with customers, communicate the transportation situation of goods in a timely manner, and solve any problems that may arise during the transportation process.

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