Shipping Agents & Intermediaries

Mohamed Sharique. V

Logistics & Supply Chain Management

Introduction

Supply Chain Management (SCM) is the management of the flow of goods and services. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

ShipperThe person or business that has the items that will be transported as freight.

ReceiverThe person or business that items are being transported to as freight.

Intermediaries

An intermediary (or go-between) is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer.

Types of Intermediaries

• Freight Brokers• Freight Forwarder• Associations• Import-Export Broker• Agricultural Truck Brokers

Freight Brokers

A freight broker connects shippers and carriers. Freight broker utilizes its knowledge, technology and human resources to insure that shippers and carriers are matched correctly and that freight is delivered on-time and on-budget.

Freight Forwarder

Freight forwarders take possession of items that are to be transported consolidating smaller shipments into one large shipment. They hold smaller shipments until they amass a larger shipment and move the items onto their various destinations. Freight forwarders typically have significant warehouse space used for consolidation.

Associations

Associations are cooperative organizations that arrange shipping (much like a freight forwarder) for their members. Shipping associations are not open to the general public

Import-Export Broker

Helping facilitate international shipping, the import-export broker will work with customs agencies, government agencies as well as international carriers.

Agricultural Truck Brokers

These smaller organizations concentrate on specific areas of the country and arrange the transport of agricultural products. Agricultural products are exempt from many shipping regulations.

Carriers

• Motor Carriers

• Intermodal

• Air Freight

Motor Carriers

A company that provides truck transportation usually with a tractor trailer combination. There are two types; private – generally a company providing its own cargo transportation and for hire – those who transport freight for others.

Intermodal

Intermodal transportation is done by truck, rail and ship without handling the freight other than at the point of origin and the destination. Typically this is done with containers that can be transported by truck, rail and ship or barge. Intermodal transportation is typically used for inter-continent freight.

Air Freight

One of the fastest growing carrier markets is air freight. Cargo or freight is transported either by dedicated cargo aircraft or on traditional airline flights. Air freight offers a much faster means of transporting freight over long distances and can be an effective means of transportation if the distance transported is greater than 800 miles.