Who Should Pay the Fees When Looking for an Export Freight Forwarding Agent?
Solved#Export agent#
Our company intends to look for an export freight forwarding agent to handle matters related to the export of goods, but we are not very clear about who should pay the fees. Should our consignor bear all the costs, or should the agent also share a part? Are there any industry practices regarding these fees? In addition, for different service items, such as booking shipping space, customs declaration, transportation, etc., will there be differences in the payment methods? We hope that friends with experience can help answer these questions.
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally speaking, when looking for an export freight forwarding agent, the fees are mainly borne by the consignor. This is because the export freight forwarding agent is entrusted by the consignor to provide relevant services, and the service fees should naturally be paid by the consignor.
For example, the booking fee is for reserving the cabin space for the consignor to facilitate the transportation of goods, so it is paid by the consignor. The same applies to the customs declaration fee. The agent helps handle the customs declaration procedures for the import and export of goods, and the fee is also paid by the consignor. The transportation fee, whether it is domestic short-distance transportation or international ocean transportation, etc., as long as it is the transportation service arranged by the agent according to the requirements of the consignor, the fee is also borne by the consignor.
However, in some special circumstances, such as when the agent and the consignor negotiate and reach an agreement to share some of the costs, it is also possible for the agent to share. But this is an individual case and not an industry practice. In short, before cooperation, both parties should clearly define the subject of cost bearing to avoid subsequent disputes.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Usually, the consignor pays because the freight forwarder does things according to the requirements of the consignor, and the fees are definitely paid by the consignor. Although different service items are all borne by the consignor, the specific details should be confirmed clearly with the freight forwarder in advance.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Most of the time, the consignor pays all the fees. However, there are also some agents who, in order to attract customers, bear some miscellaneous fees. This situation is rare. Just negotiate well before signing the contract.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, the consignor pays. After all, it is the consignor who wants to export the goods, and the freight forwarder is just providing services. But some freight forwarders may include some fees in the agency fee and collect them uniformly.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Definitely the consignor pays. The freight forwarder provides services such as booking shipping space and customs declaration, and the consignor has to pay for enjoying the services. But the fee standards should be asked clearly in advance.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Normally, the consignor pays. For some unexpected fees during the transportation process, both parties can also agree on the sharing method in advance to avoid disputes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Basically, the consignor bears the fees. However, when cooperating, list all the fees clearly to avoid the freight forwarder randomly increasing the prices halfway.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In most cases, the consignor pays. There is not much difference in the payment methods for different service fees, and all are borne by the consignor. But you can negotiate with the freight forwarder for a packaged preferential price.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The fees are generally paid by the consignor. There are many international freight forwarding services, and the consignor has to consider each service fee carefully and not miss any items.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The consignor pays in most cases. However, before cooperation, ask the freight forwarder to explain the composition of the fees in detail to prevent hidden fees.