Freight Forwarder VS Broker

FREIGHT BROKER

Role: Connects shippers with carriers to transport cargo, ensuring secure and cost-effective pickups and deliveries.

Operations: Doesn't own the freight or vehicles; uses supply chain expertise to match shippers' needs with carriers' capacity at optimal rates.

Focus: Primarily domestic shipments, aiming to lower logistics costs for shippers.

Income: Earns through the 'spread'—the difference between what shippers pay and the negotiated rate with carriers.

Tools: Utilizes supply chain contacts and load boards to find carriers.

FREIGHT FORWARDER

Role: Similar to brokers in connecting shippers and carriers, but takes ownership of shipments and manages them under their own Bill of Lading.

Operations: Often handles international shipments and provides comprehensive logistical support.

Focus: Broader scale, including international logistics, ensuring efficient transport to multiple destinations.

Services: Manages all aspects of the shipping process, often providing additional services like warehousing and customs clearance.