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What is the difference between shipping and freight forwarding in international transportation?
Date:2023-05-28

    Shipping agency companies, shipping agency companies, and foreign shipping agency companies are all so-called "shipping agents". "Shipping agency" serves the shipping company, which can be simply understood as "the agent of the shipping company", while "freight forwarding" is "the agent of the cargo owner". The service objects of "shipping agency" and "freight agency" are different.


What is the difference between shipping and freight forwarding in international transportation (Figure 1)



  Ship agency industry is a service industry.




  The English of the shipping agency is Shipping Agency, such as:



  China Marine Shipping Agency Co., Ltd


  China Ocean Shipping Agency Co., Ltd.: China Ocean Shipping Agency



  Shanghai United Int'l Ocean Shipping Agency Ltd: Shanghai United Int'l Ocean Shipping Agency Ltd



  China Association of Shipping Agencies & Non-Vessel-Operating Common Carriers, CASA for short.


  According to the common practice of the international shipping industry, the main business scope of "ship agency" includes:



  1. Vessels entering and leaving the port



  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, handling sea rescue, maritime affairs handling, ship handover procedures at ports, etc.



  2. Freight related business



Such as arranging the loading and unloading of containers or other goods, tallying, transferring and handing over, storing and transporting, and assisting in claim settlement, the shipping company issues bills of lading, collects fees, and pays fees on behalf of the shipping company, signs demurrage and dispatch agreements with the port party on behalf of the shipping company, and Calculation of expenses, chartering and booking of space by shippers and related work, etc.



  3. Supply of marine materials and goods



  Such as handling fuel supply for the ship, providing fresh water, materials required by the ship and crew, food, and purchasing and sending ship spare parts and other materials for the shipping company.



  4. Other service business


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



  There is a big difference between "shipping agency" and "freight agency":




  1. The shipping agency mainly serves the shipping company and is the bridge between the shipping company (carrier) and the port; the freight forwarder mainly serves the cargo owner and is the link between the cargo owner and the carrier.



2. In addition to the main business of shipping agency, the shipping agency can also contract goods and issue bills of lading. This part of the business overlaps with the freight forwarding. Therefore, when the shipping agency undertakes the goods, it has advantages in terms of freight rate, shipping schedule, and bill signing compared with ordinary freight forwarders. After all, the shipping agency can rely on the support of the shipping company it represents, and get the moon first if it is close to the water!




  3. The shipping agency feels relatively tall and high, and the entry threshold is relatively high; the freight forwarder feels relatively low, and the entry threshold is very low.




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




  5. Shipping agents have less contact with ordinary people. After all, shipping agents mainly deal with shipping companies and ports; ordinary freight forwarders have more contact with freight forwarders, because freight forwarders mainly deal with cargo owners and carriers.


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