What is the difference between a freight forwarder and a broker?

Prepwise AnswersCategory: Operations CareersWhat is the difference between a freight forwarder and a broker?
Career Dev Staff Staff asked 4 years ago
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Career Dev Staff Staff answered 4 years ago

Freight Forwarder : Essentially secures the business of various exporters and importers and has the ability/facility to

  • storage the cargo belonging to the clients at their warehouse (usually all big forwarders have their own warehouses)
  • negotiate freight rates with the shipping line to cover the interest of their clients
  • prepare bills of lading and associated shipping/negotiating documentation (F178, Certificate of Origin, etc)
  • MAY or MAY NOT also do Customs Clearance
  • almost viewed by clients as an alternative shipping line

Broker is someone who

  • Arranges transportation whether road, rail or sea with a carrier, either on behalf of the shipper, consignee or freight forwarder..
  • Outsources all the activities associated with the transportation such as transport, insurance..
  • Brokers generally do not own their own bills of lading like some Freight Forwarders may do..