Freight Forwarder vs. Broker

A freight broker can handle international movements, but these movements are usually in one specific area. They connect with multiple carriers, and can often negotiate better rates for the shippers. With multiple clients and higher shipping volumes, brokers have more bargaining power than an individual business with only a few regular clients.

Here are the key differences between a freight forwarder and a freight broker:

• A freight broker acts as an intermediary between the shipper of the goods and the freight forwarder or freight carrier, without ever taking possession of the freight itself

• A freight forwarder arranges transportation through third-party carriers, but takes possession of the freight and uses its resources to provide storage, handling, packaging, consolidation, and paperwork

• A freight broker typically only arranges the transport of freight within their home country

• Freight forwarders operate internationally and have been granted authority by the Federal Motor Carrier Safety Administration (FMCSA) to arrange the transportation of goods across international borders

• A freight broker ships goods under the bill of lading provided by the cargo owner