Overseas agent

Forwarders without their own office in a country appoint a local agent there. On imports, the agent books and collects the cargo at origin; on exports, it receives the shipment at destination, issues the arrival notice, arranges customs clearance and delivery, and collects local charges from the consignee. Each side invoices the other for its part of the work, and the balance is usually settled periodically, for example through monthly statements.

An overseas agent is an independent company, not a branch, which is the main difference from a forwarder's own office abroad. Agency relationships are often exclusive for a country or port, and many start through forwarder networks that vet their members and sometimes offer payment protection schemes. On ocean shipments the agent is often the consignee on the master bill and the release point for the house bill.

Agency relationships run on trust and reciprocity: each forwarder expects the other to send business its way. Common friction points are profit sharing on shipments both sides worked to win, slow settlement of balances and agents quoting the same customer directly. Before appointing an agent, forwarders usually request rates on a few typical lanes, check references and agree in writing how profit, for example a 50/50 split, and credit risk are shared.