WHAT ARE THE DIFFERENCES BETWEEN FREIGHT FORWARDERS AND BROKERS?

WHAT IS A FREIGHT BROKER?

One of the primary differences between freight forwarders and brokers is that brokers don’t take possession of the freight. A broker functions as a middleman for connecting shippers and carriers and generally doesn’t issue expenses of the bill of lading (BOL) with their name as the carrier. Brokers generally can’t be held responsible for any claims. They need to register with the Federal Electric Motor Carrier Safety Administration (FMCSA) and carry insurance to protect their customers from loss.

WHAT IS A FREIGHT FORWARDER?

Freight forwarders are companies that specialize in arranging storage and shipping of merchandise on behalf of their customers. They physically take charge of merchandise and usually ship under their own bills of lading and provide preparation of shipping and export documents. Consolidation, transportation, and insurance of the freight is the responsibility of the forwarder. They also book cargo space and negotiate rates for transport.

Freight companies at Omni Logistics will package shipment via shipping requirements set to meet your needs.

They are also responsible for the loss of, or damage to, the shipment. Freight Forwarders at Omni Logistics usually ship freight under their own BOLs, provide preparation of shipping and export documents and store freight at their warehouses.

For a more in-depth understanding, check out our article on the definition of freight forwarder.

WHAT CAN FREIGHT FORWARDERS OFFER?

When it comes to services of freight forwarders and brokers, freight forwarding services can vary between different companies. The main function of freight forwarders at Omni Logistics is to act as an intermediary between the client who is hiring them and various transportation services that are involved in getting the product overseas to the customer, including carriers, customs, and handlers.

Freight forwarders at Omni Logistics also provide the client insurance services to ensure that if the items do arrive damaged, they will be reimbursed and not liable for the damages.

LABELING

Labeling is important in the world of freight shipping, and both freight forwarders and brokers at Omni Logistics will need to ensure that all packages are labeled correctly. Additionally, freight forwarders at Omni Logistics go the extra step and will assist their customers in providing the correct labeling they require for their items.

PACKAGING

A freight forwarder at Omni Logistics should provide assistance to the customer on how to package their products for export. Packaging is crucial for the success of freight forwarders in ensuring transportation.

DOCUMENTATION

Documentation is important for the shipment of an item overseas. There are a number of documents that the freight forwarder at Omni Logistics needs to prepare for the shipment.

When looking for freight forwarders or brokers to help service your next shipment, it’s essential to know exactly what your shipment needs. For more information on how freight forwarders can help you, click on the link. If you need freight forwarding services, feel free to contact one of our locations near you today!

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