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Know the difference between a freight forwarder and a Broker

Know the difference between a freight forwarder and a Broker

Know the difference between a freight forwarder and a Broker

If you are a business owner who makes use of freight and cargo shipping, you might have come across the terms “freight forwarder” or “broker” when searching for a company for your shipping needs. Let us tell you about the difference between them so that you don’t get confused and are able to choose the right one for your shipping needs.

A freight forwarder and a freight broker have distinct functions despite having similar names.

When talking about how items are moved, the words “freight broker” and “freight forwarder” are sometimes used interchangeably. But there are actual variations between the two that go beyond just semantic distinctions.

What is a Freight Forwarder?

An individual that manages the transportation of products on behalf of their customers is known as a freight forwarder. They are in charge of organizing the global flow of commodities and are a crucial link in the supply chain.

They collaborate with producers, merchants, and other companies to provide a crucial service. Freight forwarders make sure that their goods arrive at the correct location on schedule and in top shape.

Skills of a Freight Forwarder

A reputable and knowledgeable freight forwarder should possess the following skills.

  • Knowledgeable about all forms of transportation, including road, rail, air, and sea.
  • Able to provide customers cargo shipping options that are both affordable and effective depending on their needs.
  • Able to set up storage for the cargo as most large forwarders have their own warehouses.
  • Possess the power to bargain with the shipping company for lower freight costs.
  • Do all the paperwork needed for shipping, such as Eur1, Certificates of Origin, Customs and Port Documentation, Bills of Lading, and other documents related to shipping and negotiations.
  • Even though they are not an NVOCC, they have their own house bills of lading (HBL) that they are allowed to use.
  • Organize freight transportation from/to the port and the clients’ locations.
  • Possess a good understanding of cross-border freight flow.
  • Serves as a transporter when it issues its own bill of lading.

Who is a Freight Broker?

The role of a freight broker is to facilitate communication between shippers and carriers and to keep track of shipped goods. For brokerage authority, brokers need to register with the Federal Motor Carrier Safety Administration (FMCSA), which is part of the Department of Transportation. In contrast, logistics brokers do not physically handle the shipment. Freight brokers typically deal with shipments that begin and end within the United States. Despite the fact that a freight broker can handle worldwide moves, they often only handle local movers.

Skills of a Freight Broker

  • Operates on a commission basis and links cargo owners with shipping companies.
  • Outsources all aspects of transportation, including handling of the goods and transportation-related services like insurance.
  • Not all freight forwarders have their own bills of lading, but brokers usually don’t.

Count on Vineyard Brokerage 

Vineyard Brokerage has the experience and skills to move your freight across the country and provide Full Truckload, Less Than Truckload, and Intermodal shipping for your cargo and shipping needs.

Call us to get a quick quote and leave all your shipping worries to us. With you every mile of the way!