Differentiation Between Clearing Agencies and Freight Forwarders

In case you are shifting considerable amounts of non-public or business cargo internationally, then you can certainly utilize a freight forwarder or clearing agent. You'll not be stressed if you utilize these services. A clearing agent and freight forwarder can assist you in transportation of your cargo and make sure how the cargo reaches its destination safely. However, when you may believe that freight forwarders and clearing agents are the same, there's a difference between both.

When you are moving cargo to a international destination, you'll have to fulfill certain customs formalities. This is when a clearing agent can assist you because so many agents have a very good relationship with customs authorities. Any documentation associated with the clearing of items with the customs and transportation with the goods will likely be handled from the clearing agent. Whenever a clearing agent handles your cargo, you will not be hassled from the paperwork. Also, you will not worry about paying duty and VAT because these fees will likely be handled from the agent.



A forwarder might be a company or a self-employed person who manages exports. Often a forwarder is often known as 3rd party logistics provider. The forwarder is in charge of organizing the operation of transportation for the cargo prior to it being packed. Invariably, the freight forwarder will take the cargo to his warehouse and store it there prior to it being transported. The transportation is organized according to exactly what the customer wants. Usually, the client has to inform the forwarder in which the cargo needs to be shipped as well as the forwarder will be for the best and quite a few cost effective route. The freight forwarder usually handles shipments that are sent either by sea, but he is able to also handle air shipments.

So, while transportation needs and customs are addressed by a freight forwarder, customs and documentation are handled by a realtor. This is actually the basic contrast between a forwarder plus an agent.

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