Freight can be defined as the goods transported by truck, train, ship or plane.

Freight shipping is
the process of transporting commodities, goods and cargo by land, sea or air.
Freight Forwarding
Performed by a freight forwarder, this originally included arranging transport and preparing
documentation on behalf of the shipper, including both importing and exporting (depending on
INCOTERM). Today it often consists of transport operators providing container services, who
are often additionally responsible for multimodal inland and international transportation.
The scope of responsibility for most freight forwarders today means that they can effectively
provide the following services:
 Consultation on the most efficient and cost-effective means of transport
 Act as a shipper’s agent, preparing documentation, and arranging transport services
 Serve as the principal transport operator directly responsible for the carriage of goods
 Provide specialist services managing container packing and unpacking, customs
clearances, and the raising of insurance claims
Freight forwarding therefore is the process of organizing and coordinating the transfer of
commodities across international borders on behalf of shippers and receivers. Warehouse
planning, providing cargo insurance, and customs brokerage are just a few of the other
responsibilities that must be completed.
Freight Clearing
Clearing agents represent the shipper and arrange the customs’ clearances of imported goods.
Clearing agents are responsible for:
 Arranging customs clearance/release with the appropriate requirements, such as customs
stops, port health exams, and more
 Collecting payment from the shipper for taxes and duties, as well as making payments to
Customs and SARS
 Framing the Bill of Entry before submission via electronic data interchange to customs
 Calculating the import duties and VAT payable/taxes
 Establishing the proper harmonized tariff heading of the goods for customs
 Assisting with clearing instructions to confirm that all information received from the
shipper and consignee is accurate before submission to customers’ clearance
Purpose of Clearing and Freight Forwarding
 The main responsibility of the freight forwarder is to arrange the movement of the cargo
to its final destination point.
 Apart from that, the freight forwarder must prepare and process the documents for
international freight forwarding
 The forwarder must review the ready documentation including the commercial invoices
and the bills of lading.
 Regarding the other documents, required by the destination country where the goods will
be imported, the carrier must review them in electronic format, which is used in order to
limit the use of paper records.
 The freight forwarder is responsible for establishing the communications with the other
participants in the international freight forwarding process
Difference between freight forwarder and freight clearing
 Freight forwarder and clearing agent have two different functions in the logistic service
chain, both are equally important. A freight forwarder helps in the storage of the cargo
belonging to the clients at his warehouse. It is quite possible that every freight forwarder
has his warehouse.
 A clearing agent on the other hand takes care of the customs clearance aspect of the
business. In short it can be said that a clearing agent has his company accredited with
border agencies.
 A freight forwarder has to see to it that the cargo is forwarded as according to the
instructions of the client. A clearing agent on the other hand arranges to pass the
concerned documents at customs. He would look after the customs inspections as
required.
 A freight forwarder negotiates freight rates to sustain the interest of the clients. Clearing
agent on the other hand looks after the job of applying for refund wherever applicable. A
freight forwarder normally is the one who prepares bills of lading and the concerned
shipping documentation. The documentation includes F178 and certificate of origin too.
 A clearing agent on the contrary cannot issue own bills of lading if not registered. He can
do that only if he is registered. This is one of the major differences between a freight
forwarder and a clearing agent. A clearing agent is the person who checks and processes
 Duty and VAT payments too wherever applicable. A freight forwarder normally does not
take care of the VAT payments.
 A freight forwarder is looked upon by the clients as an alternative for shipping line. He is
capable of doing customs clearance too. One of the favors done by a freight forwarder is
that he books the cargo with the shipping line and acts according to the directions of the
client. Hence it cannot be denied that both the freight forwarder and the clearing agent are
equally important.