Is there really a relationship between agency export and freight charges?
Solved#Export agent#
I've recently just got involved in the foreign trade agency export business and I'm not quite familiar with many aspects. I'd like to ask if agency export is related to freight charges? If so, what are the specific manifestations? Is it the agency that is responsible for the freight charges, or the consignor? Or what is the connection between the way of calculating freight charges and agency export? I hope that friends who are knowledgeable in this area can explain it to me so that I can have a clearer understanding of this content.
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Agency export is related to freight charges. Firstly, in the agency export business, both parties need to clearly define the entity responsible for the freight charges, which is usually stipulated in the agency agreement. It could be the consignor who is responsible, or in some cases, the agency may pay in advance and then settle with the consignor.
Secondly, the way of calculating freight charges will affect the cost accounting of agency export. For example, different charging methods such as by weight, by volume or by shipment directly relate to the total export cost of the goods, thereby affecting the quotation and profit.
Moreover, the choice of transportation mode is also closely related to agency export. Different transportation modes such as sea transportation and air transportation have significant differences in freight charges. The agency needs to assist the consignor in choosing based on factors such as the characteristics of the goods and the delivery date, which all reflect the relationship between the two.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Yes, there is a relationship. Generally, the quotation for agency export needs to consider the freight charges. If the freight charges increase, the price may need to be renegotiated, otherwise the profit of the agency may be affected.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
When exporting through an agency, the transportation route of the goods will affect the freight charges. The freight charges for complex routes are high, and the agency needs to consider this point and make reasonable transportation arrangements.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When exporting through an agency, if transshipment is involved, the additional freight charges generated by transshipment also need to be paid attention to, which is also related to the agency export business.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Some agency export agreements stipulate that in case of changes in freight charges due to force majeure, both parties need to negotiate to share the costs, which reflects the relationship.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The payment time of freight charges may also be related to agency export, whether it is before shipment, after arrival of the goods, etc., which may all be stipulated in the agency business.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The packaging situation of the goods exported through an agency may sometimes affect the freight charges. Large packaging takes up space and may lead to an increase in freight charges.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In agency export, if LCL (Less than Container Load) transportation is involved, the apportionment of freight charges also needs to be handled well, which is related to the agency business process.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If agency export involves the transportation of dangerous goods, the calculation of its freight charges is different from that of ordinary goods and is also related to the agency business.