International Freight Forwarders and Brokers; What’s the Difference?
If you’re looking for solutions for shipping goods, you may come across a number of confusing terms. While you want to make the best decision for your goods and company, it’s important to understand your options. Basically, if you need to have shipments sent to another destination, you need to choose between international freight forwarders and brokers. But, what’s the difference between to two?
What a Freight Forwarder Does
International freight forwarders practically offer every service needed throughout the shipping process. Storage of large cargo shipments, arranging pick up services, overseeing paperwork, dealing with customs, negotiating rates with carriers, providing cargo insurance, and providing updates with the client. A freight forwarding company can provide options for every step of the shipping process because they take possession of the items being delivered. This is because international freight forwarders operate under their own bill of lading. They’re registered to take possession of shipments under the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration. Essentially, a freight forwarder can store multiple shipments, arrange a number of shipments which may vary in size, and establish rates with a number of reputable carriers for consolidated freights to pass savings onto business owners.
What a Freight Broker Does
Like international freight forwarders, freight brokers are registered with the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration and must offer insurance for carried goods to protect shipment owners from financial loss. However, they don’t provide much of what freight forwarders in terms of operations. Basically, they arrange shipments to be transferred from one carrier to another. They don’t offer storage, negotiating prices, arranging of paperwork, dealing with customs, or any of the other specialized services freight forwarder might. Instead, they’re a simple solution to providing a connection between shippers and carriers.
How can I know Which one I Need?
If you’re still confused as to which type of company to select for your shipping needs, your shipment can help you to determine the answer. Typically, if you need something delivered domestically from point A to point B, you only need one carrier to get the job done. So, a broker could help you to find the best priced carrier in your area for the job at hand. However, if you need something delivered through multiple carriers, like a shipment which needs both trucking and ocean freight because it’s being sent overseas, an international freight forwarders can help. Essentially, a freight forwarder is your best solution to a delivery with multiple steps to offer one point of contact throughout the entire shipping process.
Some Benefits of International Freight Forwarders
If your shipment needs to be sent overseas or needs to go through more than one carrier to get to its destination, you’ll likely need a freight forwarding service. Fortunately, there are many benefits to choosing a forwarder for your freight needs like:
Other Services: Because a forwarder will take possession of your goods, they have to be able to offer a number of alternative services. These include mechanical tune ups, repair, and preventative services on heavy machinery.
Customs Clearance: With a broker, you’ll get the carrier you need to bring your shipment from point A to point B. However, if you need a shipment sent overseas, brokers may not be accredited to perform a customs clearance. Most international freight forwarders can.
Affordable: Since freight forwarders may consolidate shipments, combining multiple shipments of multiple parties, the costs can be passed along to clientele. This means that choosing a freight forwarder for shipping needs can end up being an affordable, less costly solution!
Need International Freight Forwarders?
If you have a need for domestic or international shipments, consider choosing a freight forwarder which can offer all the services you require to keep business running smoothly. To find out more about our service and get a quote for a delivery, visit our website today!