Freight Forwarders & Clearing Agents

Nowadays, more and more entrepreneurs are getting interested in the business of shipping due to the profit it promises to provide. If you have been planning to do the same, there are certain things associated with the logistics management chain that you must make yourself aware of. Let’s get you acquainted with the two most important professionals in the realm of shipping - freight forwarders and customs clearance agents.

Professional freight forwarders are generally entrusted with the responsibility of ensuring security for the business of importers and exporters. Their job is to collect shipped goods from their clients, then move and store them carefully in designated warehouses. They must also take and follow instructions from customers pertinent to forwarding or distribution of cargoes, and may use varied or regular routes for ensuring proper distribution. Most freight forwarders usually negotiate freight rates with shipping lines keeping in mind the interest rates of their clients. Once the negotiation has been done, they book cargoes as per client requests. After that, they prepare the negotiating documentation and lading bills. They can also file for customs clearance if they want to.

Clearing agents, as their name suggests, normally offer customs clearance services. They are not individuals, rather accredited companies with reference to local customs authorities, border agencies and other pertinent matters. Their job is to arrange and submit requisite documents at the customs. They also organise for required inspection and review as well as process VAT & duty payments wherever applicable. If needed, they can even claim for refunds. But unless they are registered, they cannot issue their own lading bills.

One of the most marked differences between freight forwarders and customs clearing agents is that the former ones can take care of shipping requirements as well as customs clearance. However, the latter can only provide clearance services to their customers. Besides, they also cannot issue lading bills without proper registration whereas the former can do so without requiring any kind of registration.

If you wish to achieve success in the field of cargo shipping, you would require the services of freight forwarders as well as clearing agents. There are many companies which can provide you with both types of professionals. All you need to do is locate a good logistics management firm to work with. Once you find a good company, most of the requirements pertinent to your shipping business will be handled by them.