Freight brokers and forwarders may both be vital in cargo shipping, but they are not the same.

Don’t overlook the crucial distinctions between a freight broker and a freight forwarder 

If you have researched freight services and solutions, you might have come across references to “freight forwarding” and “freight brokers” that give the impression of the two terms being directly interchangeable. However, such a perception would not be entirely accurate.

Freight brokers and forwarders both play crucial roles, but are not the same 

When it comes to transporting cargo across national borders, both freight brokers and freight forwarding providers have imperative roles to play. 

Furthermore, freight brokers and forwarders do have certain things in common. They both, for instance, typically interact regularly with the client (the person or organisation that is looking to have certain goods shipped to a recipient). The most reputable brokers and forwarders will also both be well-versed in the latest shipping regulations and industry best practices. 

Beyond this, however, freight forwarders and freight brokers can differ markedly from each other. 

Let’s remind ourselves of what a freight broker is; a company that offers such services acts as a “middleman” between the shipper and a suitable carrier of the shipper’s cargo. A shipper will turn to a broker with the expectation that the broker will find the most appropriate carrier service for the shipment that is to be transported. 

Freight forwarders and brokers differ in the contact they have with cargo 

One of the key things to remember about freight brokers is that they will never handle the cargo in any capacity. They are instead merely the agent for transaction purposes, with the task of securing the right carrier for a particular shipping job. 

For this reason, the freight broker might not even see the cargo in question. The carrier, on the other hand, will directly handle and transport the shipment. A freight forwarder can be regarded as being somewhere between these two contrasts. 

In some respects, a freight forwarder will act in a similar way to a freight broker – for example, by providing required shipment arrangements. A forwarder, though, will also handle the shipment in its initial stages. This is likely to entail the shipment being stored with the forwarder until the carrier can take over direct handling of it. 

It is also the freight forwarder that will typically handle such aspects as arranging cargo insurance and warehouse storage. Furthermore, in the event of something undesirable happening to the shipment, the broker won’t have any liability. Freight forwarders, though, sign contracts with clients that address freight liability. 

Freight forwarders, then, have greater responsibility for the given cargo than brokers. This also, however, means they have greater freedom than brokers in terms of managing the transport and logistics strategy for the shipment. This all might have implications for your decision-making when you are considering both brokers and forwarders. 

Would you like to learn more about our own freight forwarding expertise in the UK at KTL UK, and to receive a competitive quote? If so, please feel free to reach out to us today. 

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