Freight Forwarder VS Broker: What's The Difference?

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Freight stacked in crates during the day

You have a load that needs to get from one place to another. That means you have two main options to get your goods to the right place: look for carriers on your own or choose a third-party logistics service.

There are plenty of benefits in choosing third-party logistics, but if you choose this route, you may have some questions. For instance, what kind of company should you use? Is there a difference between a freight forwarder and a freight broker?

If you want more information on freight forwarders and freight brokers, take a look at the information below.

Freight Forwarder VS Broker

The logistics industry has a lot of specific roles, and those roles can get confusing. Especially since so many companies have similar names and responsibilities.

Freight brokers and freight forwarders do similar work, and they both provide cost effective solutions, but there are a few key differences.


What Is a Freight Broker?

A freight brokerage is a company that acts as an intermediary between shippers and carriers. When a shipper has freight that they need to move, they can contact a freight broker, who will connect the shipper to the right trucking company.

Both trucking companies and shippers can benefit from working with freight brokers. For shippers, using a freight broker often means getting better rates. For trucking companies, it can mean keeping their cargo space full and keeping their trucks on the road.


What Is a Freight Forwarder?


Like a freight broker, a freight forwarder arranges transportation for goods.

However, the main difference between a freight forwarder and a freight broker is that a freight forwarder takes possession of the shipper's cargo. Freight forwarders have warehouses and storage facilities where they prepare cargo for the next leg of the journey. They also offer packing services.

Because many freight forwarders operate internationally, these companies can help cargo owners who need customs paperwork and similar legal requirements.


When to Use a Freight Forwarder

overhead view of two cargo ships in a harbor next to a dock

Freight forwarding serves specific purposes in the logistics industry. You might use a freight forwarder in any of these situations:

  • You work with international shipments.

  • You require freight storage and need to book cargo space.

  • You need packing services.


When to Use a Freight Broker


A freight broker can help with many needs in the freight industry. You might choose a freight broker if:

  • You work with domestic shipments and won't be preparing customs paperwork.

  • You need someone to negotiate rates with trucking companies.

  • You need a freight carrier who can ship goods in the most direct possible way.

  • You want to simplify your transportation options.

When looking for freight brokers, it's important to choose the right one. You can save money and time by working with brokers who put your transportation needs first. Have questions about what to look for in freight brokers? Contact us at Pearce Worldwide to learn more.