Freight forwarder vs sourcing agent: who does what?
A sourcing agent works on the buying side: finding suppliers, checking factories and goods, and managing production. A freight forwarder works on the shipping side: booking transport, preparing transport documents and arranging customs clearance. Most importers need both, and the handover between them happens at the factory or the port.
By the Sino Vorex team · Updated
The short answer
| Sourcing agent | Freight forwarder | |
|---|---|---|
| Main job | Buying the right goods from the right factory | Moving goods from A to B |
| Typical tasks | Supplier search, quotes, samples, factory audits, production follow-up, inspection | Booking sea, air or rail freight, transport documents, customs clearance, insurance, delivery |
| Works with | Factories and you | Carriers, ports, customs and you |
| Usually paid by | Commission, project fee or day rate | Freight charges and service fees |
| Responsible for product quality? | Helps control it, through checks and inspection | No |
What a sourcing agent does
A sourcing agent represents you in China before the goods are ready: finding manufacturers, comparing quotes, negotiating, collecting samples, auditing factories, following production and inspecting goods. Their value is in getting the right product at the right price, and catching problems before you pay. See how sourcing agents charge.
What a freight forwarder does
A freight forwarder takes over once the goods are packed. It books space with shipping lines, airlines or rail operators, issues or arranges the bill of lading or air waybill, handles export and import customs (directly or through partner brokers), and arranges delivery. Forwarders do not check whether the goods inside the cartons are right.
Where the handover happens
The handover point depends on the Incoterm in your purchase contract:
- EXW: the forwarder collects from the factory and handles export clearance.
- FOB: the factory delivers to the ship at the Chinese port; your forwarder takes over from there.
- CIF: the factory's forwarder carries the goods to your port; your broker clears import customs.
- DDP: a forwarder delivers to your address with duties paid.
The gap between the two roles, from "goods finished" to "goods on the ship", is where things go wrong: unchecked goods, missed pick-ups, packing lists that do not match the cartons. Someone has to own it.
Which one do you need?
| Your situation | What you need |
|---|---|
| You have a trusted supplier and only need goods moved | A freight forwarder |
| You need a supplier, or are unsure about yours | A sourcing agent, then a forwarder |
| You buy from several suppliers | A sourcing agent to consolidate, and a forwarder |
| You cannot visit China and the goods are quality-critical | A sourcing agent for audits and inspection, and a forwarder |
Can one company do both?
Some sourcing agents are also licensed forwarders, and some forwarders offer basic inspection. More often, a sourcing agent coordinates with partner forwarders, so you have one point of contact without the agent carrying the goods itself. That is how we work: we arrange freight with partner forwarders, after the goods have passed inspection.
Questions to ask either one
- Exactly what is included in the price, and what is charged separately?
- Who is responsible if goods are damaged, delayed or held at customs?
- Is cargo insurance included, and on what value?
- Who will be my day-to-day contact, and in which language?
Frequently asked questions
Is Sino Vorex a freight forwarder?
No. We are a sourcing and export partner. We arrange freight with partner forwarders, who carry the goods and issue the transport documents.
Can my own forwarder collect goods you sourced?
Yes. We coordinate the pick-up date and paperwork with your forwarder.
Who clears customs in my country?
Your customs broker or your forwarder's agent, unless you ship DDP, where the forwarder handles import clearance and duties.