In the vast ocean of international logistics, choosing the right partner is like picking an accurate nautical chart. For sellers, it's critical to understand the difference between a first-hand (primary), second-hand, and third-hand forwarder, which will have a direct impact on the cost, efficiency, and quality of service in the transportation of goods. Today, we will explore these concepts in depth to help you find the most appropriate logistics partner in the Southeast Asian market.

 

First Hand / First Class Forwarder: the power to directly interface with shipping lines

Definition

First Hand Forwarders are those freight forwarders who contract and book space directly with shipping lines and who have Non-Vessel Operating Common Carrier (NVOCC) status. This means that although they do not directly operate the vessels, they can use their own strong network and agreements to obtain the best slots and provide comprehensive services to their clients.

 

Advantages

Affordable: Due to the reduction of intermediate links, first-hand bookmakers are able to offer more competitive prices.

Fast Response: Fast response to customer needs, especially in peak season or emergency situations can solve the problem more quickly.

High degree of professionalism: rich industry experience and professional knowledge ensures the quality of service.

High booking priority: it is easier to get the ideal cabin arrangement, especially when flights are tight.

Strong service guarantee: Because we are directly facing the shipping company, we can handle problems more quickly and effectively.

NVOCC Interpretation

NVOCC is a special kind of logistics service provider, which does not actually own the means of transportation (e.g. ship), but acts as a bridge between the shipper and the final consignee. By integrating multiple small shipments to form a full container shipment, NVOCC not only reduces costs, but also improves transportation efficiency.

 

Used Freight Forwarding: Flexibility and Personalized Service

Definition

A second-hand forwarder is a freight forwarder who buys space from a first-hand dealer and then resells it to the customer. This kind of forwarder usually adjusts the price and service content according to the market demand in order to meet the needs of specific customers.

 

Characteristics

Slightly higher price: the cost is slightly higher than the first-hand dealer due to the increase of intermediary fees.

Relatively weak response speed and service guarantee: depends on the performance of the upstream first-hand dealer, which may not be as efficient as direct cooperation.

Personalized service: sometimes can provide more customized solutions, such as for the handling of special cargo types.

Third-hand forwarders and below: risks and uncertainties

When a slot reaches a third-hand forwarder after several resales, its transparency and reliability are significantly reduced. At this point, customers face higher costs, uncertain service quality and potential risks such as misinformation and time delays. In addition, the lack of direct contact channels makes it more difficult to resolve problems should they arise.

 

Risk Tips

Information error: as the chain of transmission becomes longer, the accuracy of information decreases.

Time delays: each link can lead to additional waiting time.

Unprofessional service: There is no guarantee that all participants will maintain a high standard of service.