Freight Forwarders vs. Freight Brokers

Posted by Port City Logistics on Nov 30, 2020 5:00:00 PM

If you’re an outsider to the shipping industry, it could be difficult for you to understand the more technical aspects of freight shipping. Two roles within the industry are freight forwarders and freight brokers, both of which play vital parts in moving your business’s items. In this article, we’ll break down the differences between freight forwarders vs. freight brokers and help you select the best option for your business.

Freight Forwarder

Freight forwarders are responsible for storing freights, preparing it, and providing insurance in their warehouses. They are always ready to arrange and transport your products as per your expectations. The primary differentiating feature is that these forwarders have to ship your goods under their Bill of lading.

Forwarders ensure the freight is protected at all costs to retain clients for a long time. Port City deals with freight forwarders recognized by FMCSA as they have the right to operate in foreign countries beyond our reach. You will have peace of mind dealing with professionals all through to when your shipment arrives.

Freight forwarders also take part in organizing your shipment, storing it, and shipping it to your specified destination. They offer preparation for shipment documents service, insurance, storage, gathering, among other benefits.

A forwarder guarantees proper packaging, safety, forwarding packages, and intermediaries between clients. This ensures your items are shipped with great quality and attention to detail.

Freight Brokers

Like any other broker, these bridges the gap between transportation companies and clients with shipping needs. What makes such a broker necessary is their remarkable knowledge in freight laws, fixing any problems, handling paperwork, and providing viable options in tough times. PCL CTA 2 (3)

Another role of a broker is to provide an open communication line between the two parties involved. They have extensive knowledge of shipping and will smoothen the transportation and shipping process. For instance, our brokers play an essential role in ensuring truck arrivals, departures, client negotiations, and prevent any hiccups in the process.

Differences Between Freight Forwarders and Brokers

The services offered by freight forwarders and freight brokers are almost the same but vary at some point. Brokers do not deal with storage or handle any freight. On the other hand, Freight forwarders play a significant role in providing clients with shipping freight services. They use their Bill of lading.

Freight forwarders also prepare the shipping documents and organize the freight, unlike brokers who only connect the company to the clients and leave the hard work to the two. In the case of damaged properties, freight forwarders can be held liable. However, a broker doesn't handle the freight directly and cannot be held responsible for the damage. They can only handle claims on behalf of the clients.

Freight forwarders can arrange the freight as per the client's needs, but brokers can only connect the clients with a company ready to tailor their services. Brokers also connect shipment owners to shipping companies. In contrast, freight forwarders can only wait until the clients come to their company for assistance. At some point, the freight forwarders rely on the brokers for clients. Freight forwarders provide shipping lines to major carriers while brokers can only negotiate the shipping services through air, road, rail, sea, or other sources.

Both shipping brokers and forwarders play a significant role in shipping your goods and will help you save money. They aim at making lives easier for carriers and shippers by helping with expert documentation preparations, handling claims, providing insurance, and protecting the package.

Contact Port City Logistics For Your Freight Needs

If you’re looking for the best freight brokerage and 3PL provider available, contact Port City Logistics. Our team of expert staff will create the perfect solution for your business needs. We’ll be happy to further discuss why you need freight brokerage for your business. Start optimizing your shipping strategy today

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Topics: Third Party Logistics (3PL)