What is the relationship among shipping companies, freight forwarders, and customs brokers?



A full complete process of international cargoes import and export will include shipping companies,freight forwarders and customs broker,so what is the relationship among shipping companies, freight forwarders, and customs brokers?This blog will explain to you.
As the world's largest shipping company,the weather vane of the shipping industry, Maersk, not only finished integration with supply chain management companies, to provide customers with all-round, end-to-end logistics solutions, but also finished the acquisition of top US customs brokers, design and build project of customs clearance ,trade rules and risks control.So shipping companies have begun to engage in customs declaration business. How should the customs brokerage industry use its advantages to accept the challenges of the market?

What are the advantages of customs broker?
An import and export trade process includes stock preparation, packaging, customs clearance, shipment, transportation insurance, warehousing, transportation, foreign exchange settlement and many other links. Therefore, we have to start with what role the customs broker plays in the entire chain of import and export trade activities .Since we mentioned the integration and transformation of the largest shipping company Maersk, we will start with the shipping company first.

About Shipping Company
Shipping company is a totally name,it includes the following 3 kinds:

1.Shipowner's company:
The shipowner refers to the legal holder of the "Ship Ownership Certificate", that is, the person who legally owns the sovereignty of the ship. The company has the actual owner of one or more ships, and the ship can be chartered. Operate for others or manage it himself.

2.Management company:
It refers to the company that conducts operation and management of the ship, and may not be the actual owner of the ship. For example, a shipowner company has 10 own ships, which are handed over to a management company for ship operation, maintenance and management.

3.Chartering company:
It refers to the company who can do shipping chartering for cargo transportation.

The above-mentioned companies can all have their own ships, and the management company and chartering company may not have their own ships. But the chartering company is also carriers."Carrier" refers to a person who, in his own name, or entrusts others to conclude a contract for the carriage of goods by sea with the shipper. The carrier shall properly and carefully load, move, stow, transport, keep, take care of, and unload the cargo.

International freight involves a wide range and strong professionalism. Since shipping companies generally do not directly contact import and export consignees and consignors, it is difficult for import and export consignees and consignees to fully grasp these knowledge and skills, and they do not have sufficient experience. Therefore, shipping companies must pass The intermediary company is connected with it, and the freight forwarders serving both the import and export consignee and the shipping company become professional service providers. On the one hand, they help the shipping company collect goods and serve their customers well on the other.

About Freight Forwarding Companies in Customs Declaration
Freight forwarder companies is that mainly serve international cargo transportation business. The International Federation of Freight Forwarders Associations (FIATA) defines its regulations as: international freight forwarders are persons who collect transportation for the benefit of customers according to the instructions of customers, and are not carriers themselves. 

International freight forwarders can also engage in activities related to the delivery contract based on these conditions, such as storage, customs declaration, acceptance, and payment collection. In the past, freight forwarders were divided into first-level and second-level freight forwarders. First-level freight forwarders can get lower freight rates from shipping companies so that they can have a price advantage. But now thanks to the development of network technology and information technology,basically all freight forwarders can get first-hand shipping rates directly.

Generally speaking, after accepting the consignment of import and export consignees and consignors, the freight forwarder will contact the shipping company to book the space, and then choose a suitable customs broker to go through the customs clearance procedures with the customs. At this time, the customs broker begins to play effect.

About Customs Broker
What we usually call "customs declaration companies" actually exist in two types of companies. One is freight forwarding companies or logistics companies. Because they have the qualifications of "declaration agent", they generally focus on freight forwarding business, with customs declaration as a supplement. ; The other category is professional customs declaration enterprises, which are mainly engaged in accepting the entrustment of the consignees and consignors of cargoes imported and exported, and freight forwarders to specialize in cargoes import and export customs declaration business.

 In addition to "declaration agents" and "professional customs declaration enterprises, there is also a "self-care declaration enterprise", which refers to the consignees and consignors of cargoes import and export registered with the customs. This type of customs declaration enterprises can only handle the customs declaration procedures of trading companies, can not represent other enterprises to declare customs.

For a long time, although freight forwarding companies have the qualifications for customs declaration and import and export consignees and consignors also have the qualifications for self-declaration, most of them still choose professional customs declaration companies to go through customs clearance procedures because of their lack of professionalism. 

What are the aspects of the professionalism of the customs declaration industry? We will talk about it in the next blog.

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Established in 2003, JCtrans Logistics Network is a global logistics network. Since founded, JCtrans relies on e-commerce and online public platform to provide global networking services for ocean global freight forwarders and other logistical service providers, by means of network marketing promotion, transaction, settlement platform, financial protection, credit system, logistics transportation and other diversified services.


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