You might be new to shipping products and find it confusing to get to grips with all of the different terminology and types of businesses involved. In this guide, we're looking at the differences between shipping lines and freight forwarder companies.
Freight Forwarder or Shipping Lines - A Quick Definition
In order to properly understand the differences between these two types of shipping businesses, we need to define them. Freight forwarding services play a critical role in streamlining the shipping process for businesses by managing logistics complexities, facilitating compliance with regulations, and providing additional support like documentation, customs clearance, and specialized trucking services. On the other hand, shipping companies own and operate the vessels used for transporting cargo, while forwarding companies act as intermediaries, consolidating shipments and managing logistics without actually owning transportation assets.
What is a Shipping Line?
Shipping line businesses are responsible for providing transportation services to get the cargo to the location safely. Someone shipping goods can do so via the shipping line and also give them the power and permission to sign off on goods and documentation between ports if needed. The businesses can sometimes be held accountable for any damages that happen to the goods or if they get lost.
What is a Freight Forwarder
On the other hand, freight forwarders deal with moving items from port to port and other transport hubs using the roads or even air travel. Freight forwarding companies and businesses can arrange the most effective way of shipping and sometimes storing items if needed. Freight forwarders also work closely with customs brokers to handle customs clearance on behalf of a shipper. Freight forwarders play a crucial role in managing shipments across multiple countries.
The key difference is that a freight shipping company will take on the responsibility of transporting goods between ports as well as getting them to the ports. On the other hand, a shipping line service is just port-to-port via sea travel rather than getting the goods to their final destination. Freight forwarders provide comprehensive import and export services and logistics services to ensure efficient transportation.
Often, freight forwarders will take responsibility for the customs forms and, for an additional fee, can deal with this complicated shipping area. They also subcontract with truck companies to facilitate the transportation of goods. Freight forwarders can oversee the whole process and offer “door-to-door” delivery.
Shipping lines might make it easier to track your goods because they are not using multiple forms of transport to get them from “A” to “B”. A freight forwarder might offer this, but as the process of shipping items can include trucking, ocean freight, and air freight shipping, it might be a bit more tricky.
Shipping lines also make it easier to establish if an item or items have been damaged in their care, as they will be checked before and after shipping. Freight forwarders may just move the items to the next form of transport, but they often provide value added services such as real-time tracking, packaging, and inventory management.
Shipping Lines & Freight Forwarders - The Similarities
There are similarities between the two business types, too. A freight forwarder will be able to use the same shipping services and shipping lines that are available if you contact them directly. Both can sometimes sign off on responsibilities for your goods, and both will transfer goods over long distances. However, many people opt for a freight forwarding business.
Why Choose Freight Forwarders?
A lot of people choose freight forwarders for business success, as they ensure timely delivery and take a lot of the doubt and worry away from business owners. If you are involved in international importing or exporting goods, a freight forwarder can oversee the whole transportation process and not just the port-to-port transfer of goods.
Freight forwarders may also be the best option for getting great shipping rates; they might even be able to negotiate better rates with the shipping lines to save you money in the long run.
Choosing Your Forwarder or Shipping Lines
How can you make sure you are opting for a trusted shipping service? It's integral that you choose a company that can get your goods safely transported.
Freight Forwarder
Ensure that the freight forwarder has experience in the area. Does their website show other companies they’ve worked with? If you can, get testimonials from them to prove their credentials.
Discuss a quote first and make sure that they offer all of the services you need. You might need specific customs forms, for example. Alternatively, you might need to make sure they have a method to get your goods to their destination after reaching a port, with further road travel, for example. Check that they are comfortable handling this before you start doing business with them.
SeaRates’ tools can allow you to easily check which forwarders might be able to offer you exactly the services you require at the best possible shipping rates and prices.
Shipping Line Companies
You should always check a company's assets to ensure that they are a real business and aren’t looking to scam you and take your cash or steal your ID. This due diligence goes a long way toward establishing whether a company can be relied upon.
When choosing a shipping company, you will want to check whether or not they offer a tracking tool, such as an app, that can show you when your goods have arrived and been signed for.
Always check the speed of shipment, too. You may be able to get a very good rate if you are willing to wait months for your goods to reach their destination, but this sort of holdup can be fatal for businesses, and if you haven’t thought out exactly how you are going to handle your international shipping, then you might spend months waiting on goods.
Conclusion
Fortunately, in the modern age, it is easier than ever to establish which types of shipping you need for goods, compare shipping quotes, and get things moving quickly. If you want a “hands-off” experience, then a freight forwarder such as SeaRates may be the best way to take the responsibilities off your hands and ensure that your goods get to where they need to be.
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