What is International Shipping Agent?

June 5, 2024

What is an international shipping agent?

International shipping agent refers to the economic activities in which international shipping agent organizations accept the entrustment of consignees and consignors of import and export goods, handle international cargo transportation and related business for the instructors in the name of the instructors or themselves, and collect labor remuneration.

 

The status and role of international freight forwarding

International shipping agents play an important role in promoting the development of the domestic and world economy. They can not only simplify international trade procedures and reduce transportation costs but also save foreign exchange and help improve the balance of foreign exchange receipts and payments by supporting carriers and insurers.

The nature of the work of international shipping agents determines that people engaged in this business must have extensive professional knowledge, rich practical experience, and excellent serviceability in international trade transportation. The role can be roughly summarized into the following main aspects:

  • Organization and coordination role. International shipping agents use the most modern communication equipment to promote the simplification of international trade procedures. International freight forwarders have always been called “designers of transportation” and organizers and coordinators of “door-to-door” transportation. With the transportation knowledge and other related knowledge, it organizes transportation activities, designs transportation routes, selects transportation methods and carriers (or cargo owners), coordinates cargo owners, carriers and their relationships with warehouse custodians, insurers, banks, ports, airports, stations, yard operators and customs, commodity inspection, health inspection, animal and plant inspection, import and export control and other relevant authorities, which can save time for the client, reduce many unnecessary troubles, and concentrate on the main business.

shipping agent

  • Professional service role. The various services of international freight forwarding are specialized. Usually, it has professional knowledge of complex import and export business, sea, land, and air transportation, settlement, consolidation, warehousing, container transportation, dangerous goods transportation, insurance, etc.
  • Communication, development, and control role. International freight forwarding not only organizes and coordinates transportation, but also affects the creation of new transportation methods, the development of new transportation routes, the formulation of new transportation rates, and the market development of new products.
  • Consulting role. International freight forwarders are consultants for enterprises. They can provide consultation on freight, packaging, documents, finance, customs, and consular requirements required for import and export business, and can also make suggestions on the possibility of sales in foreign markets.
  • Cost reduction. International freight forwarders have a close understanding and long-term cooperation with the transport parties, warehouse custodians, loading and unloading operators, banks, customs authorities, etc. of the goods. They trust each other. International freight forwarders can pay relevant fees and taxes on behalf of consignees and consignors, settle relevant fees with carriers, warehouse custodians, and loading and unloading operators in advance, and provide fees, tax guarantees, or risk guarantees to carriers, warehouse custodians, loading and unloading operators, banks, and customs authorities with their strength and reputation. They can help the client to raise funds and reduce capital occupation. Through the efforts of international freight forwarders, the role of financing is enhanced and the efficiency of the client’s capital utilization is improved.
  • The service is competitive. International freight forwarders have a good grasp of the market conditions for the transportation, storage, loading and unloading, and insurance of goods. They have long-term, close, friendly, and cooperative relations with the transportation parties, warehouse custodians, ports, airports, stations, yard operators, and insurers of goods. They have rich professional knowledge and business experience, a favorable negotiating position, and skilled negotiation skills. Through the efforts of international freight forwarders, they can recommend to customers the latest and most economical transportation methods, choose the best transportation routes and transportation methods for goods, the best warehouse custodians, loading and unloading operators, and insurers, and strive for fair and reasonable rates, thereby helping customers control the proportion of freight in the sales price of goods.

Provide special services. International freight forwarders can provide a variety of special project services. For example: concentrating small batches of goods into a whole group of goods, which is very valuable for people engaged in export trade

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