Can the export ocean freight agency fee be included in the freight cost?
Solved#Freight forwarding#
Our company has a batch of goods to be exported recently and has engaged a freight forwarder to help handle the matters related to ocean freight. Now it comes to cost settlement and we want to know if the export ocean freight agency fee is counted as freight cost. We haven't paid much attention to this aspect before and don't know how the industry defines the export ocean freight agency fee and the freight cost. We are worried about being ripped off during settlement. Can any knowledgeable friends please explain it to us?
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The export ocean freight agency fee is usually not counted as freight cost. The freight cost mainly refers to the fees charged by the shipping company for a series of services such as loading the goods on board, transporting and unloading them when the goods are transported from the port of departure to the port of destination. And the export ocean freight agency fee is the fee charged by the freight forwarder for providing services such as booking space, customs declaration, inspection application, document processing, etc. for the cargo owner.
These services provided by the freight forwarder can help the cargo owner complete the export ocean freight process more smoothly, but they are of different natures from the freight cost charged by the shipping company. For example, for the customs declaration service, the freight forwarder needs to declare to the customs according to the information provided by the cargo owner, and this process has no direct connection with the cost of the goods transportation itself. Therefore, during cost settlement, the export ocean freight agency fee and the freight cost should be clearly distinguished to avoid confusion.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
No, the freight cost is the transportation fee charged by the shipping company, and the agency fee is the service fee charged by the freight forwarder for helping with the work. They are two different things.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The export ocean freight agency fee cannot be counted as freight cost. The agency fee covers many miscellaneous service charges, such as arranging trailers, which is different from the freight cost for simply transporting goods.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Definitely not. The freight cost is relatively simple, just the expense for goods transportation, while the agency fee is generated from the additional services provided by the freight forwarder.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
No, the freight cost is the expense for the goods' transportation on the sea, and the agency fee is the money charged by the freight forwarder for handling affairs during the operation process.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The export ocean freight agency fee and the freight cost are different. The agency fee is similar to an intermediary fee, and the freight cost is the cost of transportation.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The two are not the same thing. The freight cost is generated in the shipping link, and the agency fee is the fee charged by the freight forwarder for helping handle various procedures, etc.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
It cannot be counted. The agency fee is mainly charged by the freight forwarder for providing various services and is significantly different from the freight cost for goods transportation.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The export ocean freight agency fee is not counted as freight cost. The freight cost is the simple expense for ocean transportation, and the agency fee is the service remuneration of the freight forwarder.