A sourcing agent looks after the supplier and the product until the goods are sealed in the container. A freight forwarder looks after moving that container from the plant or port to your door. They are not substitutes: on a direct order from India, most importers use a forwarder, and many also use an agent.
Confusion arises because the two meet at loading and at the documents. This article sets out where each one's job starts and stops on a typical dehydrated onion order.
What a freight forwarder does
- Books space on a ship, or a flight for samples and urgent lots, and arranges the container.
- Arranges haulage from the plant to the port, often Pipavav or Mundra for Gujarat plants.
- Handles export customs filing in India, usually through a customs broker.
- Issues or obtains the bill of lading and tracks the shipment.
- Through partners at destination, can arrange import clearance, delivery and sometimes cargo insurance.
What a forwarder does not usually do
A forwarder moves what the shipper gives it. It does not normally choose the plant, check the plant's hygiene, test the onion, compare the lot with your specification or verify that the moisture and microbiology results belong to the bags being loaded. If the powder is caked or the lot fails a pesticide test, the forwarder has still done its job.
What a sourcing agent does
- Finds and shortlists processing plants and checks that they are real manufacturers, not traders presenting as one.
- Audits the plant: raw material, drying, sorting, metal detection, milling, packing and storage. See what an audit of a dehydration plant in Mahuva covers.
- Collects and compares samples, and helps write the specification.
- Arranges independent tests per lot for pesticides, ethylene oxide, microbiology and moisture.
- Supervises loading: lot numbers, bag counts, condition, container cleanliness and seal.
- Checks the export documents against the order and the test reports before you pay the balance.
Where the two overlap
Loading day and the document pack are shared ground. The forwarder needs the container booked and the shipping bill filed. The agent needs to see the right lots go into that container. The bill of lading, the invoice, the packing list and the certificate of origin all have to agree. In practice the agent checks that the commercial documents match the goods, and the forwarder handles the transport and customs documents. Clear roles avoid the common gap where each assumes the other checked.
Who appoints the forwarder
That depends on the Incoterm. Under FOB you usually appoint the forwarder and control the freight. Under CIF or CFR the plant books it, which is simpler but gives you less visibility of cost and schedule. The difference between FOB, CFR, CIF and DAP and choosing a freight forwarder for imports from India explain the trade-off.
Side by side
- Main job: agent, the supplier and the goods; forwarder, the movement of the goods.
- Quality risk covered: agent, product and plant; forwarder, transit and handling.
- Paid for: agent, usually a fee for the sourcing work; forwarder, freight and service charges per shipment.
- Works for: an agent may work for the buyer or for the seller, so ask; the forwarder works for whoever books it.
- When you can skip it: you can skip an agent if you have your own trusted plant and testing in place; you can rarely skip a forwarder, unless the plant ships on CIF terms.
Can one firm do both?
Some forwarders offer inspection, and some agents can introduce forwarders. Ask who actually carries out each task and who is liable. An agent who also earns on freight has a mixed incentive, so ask how it is paid. Our answer to whether an agent handles freight and customs explains how we keep the roles apart. For the inspection-only alternative, see third-party inspection vs a sourcing agent.
How Creston & Co fits
We are the sourcing side. We find and audit plants for dehydrated onion and dehydrated garlic, have each lot tested at an NABL-accredited laboratory, supervise loading and check the documents, for one written fee agreed in advance. We do not sell freight, so you keep your own forwarder or choose one freely. To map out who does what on your next order, book a free sourcing review.