No company can operate as an island when transporting items. Long-distance shipping requires using many different entities—and trusting them to act on your behalf. This is the only way to run a successful and profitable operation. Failure to coordinate these parties can cause massive headaches. It can also frustrate customers and hurt your bottom line.

That’s where clearing agents and forwarding agents come in.

These two entities play critical roles in the shipping industry. In fact, these parties act on behalf of shippers during the transportation process. While these agents don’t necessarily work together, they’re still responsible for many tasks during a delivery.

With that in mind, let’s take a closer look at these critical roles, explore their differences, and examine why they’re necessary.