What Is a Freight Agent?

In this article, everything about freight forwarding will be presented.

What Is a Freight Agent?

A freight forwarder is an intermediary, broker, and transport organizer between cargo owners and carriers, from the work content, to accept the client’s commitment to complete a certain part of cargo transportation or related to it. All the work involved in this area can be done directly or indirectly by looking for freight forwarders to save costs. As a freight forwarder, in addition to your duties of managing transportation logistics, working with carriers, and documenting cargo movements, you must also ensure that facility operations are cost-effective and meet government and company policy requirements.

What Does a Freight Agent Do?

The business process of freight forwarding mainly includes the following steps

Quote

Provide inquiry information: name, number of pieces, weight, box size, destination airport, and inquiry from the freight forwarder. And sign the cargo consignment power of attorney, that is, the contract.

Book

After receiving the consignment, the freight forwarder will choose the appropriate route and flight time for booking with the carrier according to the shipper’s requirements.

Receive the Goods

A: the consignor from the delivery: freight forwarders should fax the goods into the warehouse map to the consignor, indicating the contact person, telephone, delivery address, time, etc. So that the goods into the warehouse in a timely and accurate manner.

B: freight forwarder to receive the goods: the consignor needs to provide the freight forwarder with a specific receiving address, contact person, telephone, time, and other relevant information to ensure that the goods into the warehouse in a timely manner.

Customs Declaration

the shipper provides the required information for customs declaration: corresponding box list, invoice, customs declaration power of attorney, and other documents (at present, all the national customs implementation of paperless declarations, the customer needs to sign a paperless agreement with the customs online), and freight bill together with the customs broker to customs declaration. After the customs audit, the goods will be released and the customs declaration procedure will be completed.

Transit Clearance

A: direct destination: the consignee will be cleared by the air waybill, and the goods will be collected. B: Non-direct destination port: The airline will be responsible for transshipment, delivering the goods to the destination port, and then the consignee shown on the waybill will clear customs and collect the goods.

Cost Settlement

cost settlement needs to be based on the settlement method agreed by both parties, if it is a cash settlement method, the cargo owner needs to pay the freight in advance, and then the cargo will be handed over to the carrier for transportation. If the parties have signed a monthly settlement agreement, the settlement will be made in accordance with the settlement time agreed upon by both parties.

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Freight Broker vs Freight Agent: What’s the Difference?

Both freight forwarders and brokers are intermediaries responsible for transactions between buyers and sellers, the main difference between them is that freight brokers obtain a freight broker’s license through the FMCSA and are responsible for the transportation of goods. Freight forwarders, on the other hand, do not need a license and do not need to assume the credit risk of their clients in terms of invoice collection or freight forwarder’s bond.

A freight forwarder has less responsibility than a freight broker. Freight forwarders need freight brokers to operate, while freight brokers can operate without freight forwarders.

In terms of size, a freight forwarder’s business is not as large as a freight broker’s business.

When it comes to day-to-day work, freight forwarders are only responsible for finding their own customers and carriers and arranging their own freight. While freight brokers are responsible for finding customers and carriers in addition to invoicing, compliance, claims, credit checks, etc.

How To Become a Freight Agent?

In addition to a high school diploma or GED, excellent communication, time management, and organizational skills are necessary to become a freight forwarder. Understanding and mastering the basics of logistics, shipping, and import laws is a must to become a freight forwarder. In addition to education and training, freight forwarders must obtain a broker bond and, depending on the type of shipment, a license from a government agency.

What’s the Importance of Cooperating with a Freight Agent?

As global trade becomes more complex, working with a freight forwarder can help you save time and money in the long run by preventing cargo delays and streamlining supply chain processes.   

Freight Agent Opportunity

The best freight forwarding opportunities offer high commissions, weekly pay, advanced software, national service, an extensive network, sign-on bonuses, 24/7 support, and low customer saturation. There are many benefits to running a freight forwarding business, starting a freight forwarding business requires very little capital, very low overhead, and great earning potential. Anyone can become a freight forwarder! Working with a great freight forwarding company ensures that you are working with experts and that every detail of the workflow can be optimized and executed to a high standard. Working as a freight forwarder can be fulfilling, enjoyable, productive, and growing. To find out how much you can earn and take the next step in your career, contact us today!

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