What's the Difference Between Nominate Forwarder and Regular Forwarder for Air Freight to Dubai
What's the difference between a nominate forwarder and a regular forwarder when sending air freight to Dubai? Understanding their differences can help you avoid many pitfalls.
1. What Exactly Are Nominate Forwarders and Regular Forwarders?
A nominate forwarder is designated directly by the buyer in Dubai. It takes charge of everything from booking space to the entire transportation process, leaving the seller with no right to choose. A regular forwarder is a general term for the forwarders we usually refer to. It can be nominated by the buyer or found by the seller themselves, offering greater flexibility.
2. What Are the Core Differences Between the Two? There Are 3 Main Points.
2.1 Different Ownership of Decision-Making Power
During the whole process of air freight to Dubai, the nominate forwarder is completely decided by the buyer. The seller can only accept passively and cannot choose the forwarder themselves. As for regular forwarders, either the buyer or the seller may take the lead in choosing. For example, under CIF terms, the seller usually finds the forwarder, while under FOB terms, the buyer may nominate one or both parties decide through negotiation.
2.2 Differences in Service Objects and Costs
Essentially, a nominate forwarder serves the buyer, so its fees may be higher. Besides the basic freight, it may also charge additional handling fees, document fees, etc. If a regular forwarder is found by the seller themselves, it will be more in line with the seller's needs, with more controllable price and service. It can help negotiate prices and monitor the entire process of air freight to Dubai.
2.3 Ownership of Goods and Initiative in Delivery
In the final stage of air freight to Dubai, whether the nominate forwarder releases the goods mainly depends on the buyer's instructions. This often puts the seller in a passive position. So when using a nominate forwarder, make sure to receive the full payment before arranging delivery to avoid losing both goods and money. If a regular forwarder cooperates with the seller, communication is more direct and the control of goods ownership is more secure. For instance, goods can be released against the original bill of lading or payment certificate.
3. Which Trade Terms Do Nominate Forwarders Usually Correspond to?
Terms like FOB and ESW. Under FOB terms, the buyer is responsible for booking space and transportation. The nominate forwarder usually handles some or all links of space booking, customs clearance at the Dubai destination port, and delivery. The seller only needs to deliver the goods to the designated port. ESW is the term with the least responsibility for the seller. The nominate forwarder will handle a series of operations including warehousing, trucking, customs declaration, destination port customs clearance, and delivery. The seller doesn't even need to handle export customs declaration, but must confirm who bears the fees.
4. Some Tips for Foreign Trade Personnel Sending Air Freight to Dubai
When using a nominate forwarder, confirm the detailed fee list with the buyer in advance to avoid hidden charges. No matter which type of forwarder you use, ensure that goods are shipped only after payment is received, especially for nominate forwarders where the ownership of goods is more likely to be out of control. If you are a newcomer, you can first cooperate with a regular forwarder found by yourself, as the process is more transparent and communication is more convenient.
The whole process of air freight to Dubai involves many links and requires high professionalism. No matter which type of forwarder you choose, you must fully understand the forwarder's scale and actual situation in advance, and find a reliable one to avoid unexpected problems. Forwarding companies like ours have bought out 20 weekly pallet positions from two major airlines, while even some powerful peers only have 2 or 3 positions—our capacity is 10 times that of theirs. Most regular forwarding companies are small shell companies with only 3 to 5 people, which are not capable of obtaining pallet positions directly from airlines. They usually get positions from the market, resulting in long communication chains, low efficiency, and high risk of goods being dropped by airlines. So foreign trade personnel must keep their eyes open and avoid pitfalls in the forwarding link.
DL Logistics is one of the top 5 companies in air freight to middle east. We have bought out 20 weekly pallet positions from two major airlines, have priority channels for customs clearance at UAE air ports, and can skip the queue to pick up goods at the warehouse. Our local logistics team is available to answer calls at 2 a.m., ensuring that goods delivered in the morning arrive at noon and those delivered at noon arrive in the afternoon. It is truly one of the top 5.
DL's air freight to middle east—everyone who uses it says it's smooth.