follow link Both freight brokers and freight forwarders act as a middleman for business transactions in logistics. Though similar in stature, they differ greatly in their core business and must not be used interchangeably. In general, the main difference between the two is that a freight forwarder is responsible for the shipments while a freight broker is responsible for organizing the transaction between two parties doing business with each other, which are usually the shipper and the carrier.
click To understand more about them, let’s discuss each in greater detail.
go to link Freight Brokers
http://www.sodascore.com/macroeconomic-research-paper-topics/ macroeconomic research paper topics A freight broker acts as an intermediary or middleman between the shipper (the person or company who wons the cargo that needs to be transported) and the carrier (the company contracted to transport the cargo). The freight broker determines the specific services and needs of the shipper and then identifies a carrier that has the perfect freight solution to do the job. The broken then receives compensation (a flat rate or a percentage of the fee) for its role in arranging the transaction.
A broker typically utilizes numerous avenues of contacts in the shipping industry to transport items at a fair price but does not issue a Bill of Lading where it is named as carrier. A shipper cannot have the broker held responsible for any damages done during shipment of the goods or products of the shipper.
Essay On Correction Freight Forwarders
How To Write Statement Of Research Interest For Phd A freight forwarder provides actual freight service and has, at one point, control over the cargo. Its services range from the assembly and consolidation of smaller shipments into larger bulk shipments and breaking big shipments into smaller ones. Unlike a broker, who can work on a small office, a forwarder usually requires appropriate physical facilities that would enable it to carry out the services that it offers.
A freight forwarder is also known as a forwarding agent, or someone who takes care of the shipments of certain business transactions. The forwarder can also be the carrier of an individual or a company doing a business deal. The forwarder can be the agent, or the forwarder can be just a third party from the business deal. The forwarder is someone who is responsible for the bookings of shipment spaces for the transport of cargoes through ships, planes, trucks, or trains.
follow Legal Difference
When it comes to liability on damaged or lost assets, a broker and a forwarder are worlds apart. A brokerage does not, in any way, shape, or form, perform any service that resembles that of a carrier or forwarder. At no point does the broker hold possession or authority over the goods. Hence the broker never holds any legal responsibility or liability in relation to the shipment.
In contrast. A forwarder, during a certain point, obtains full authority and responsibility over the shipment, which makes it liable for any losses or damages that may occur to the cargo while in transit.