What's the difference between a Freight forwarder and Freight Broker?

Discussion in 'Freight Broker Forum' started by WildHog, Oct 30, 2013.

  1. WildHog

    WildHog Light Load Member

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    What's the difference between a Freight forwarder and Freight Broker?
     
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  3. 48stater

    48stater Light Load Member

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    "Freight Forwarder—the term 'freight forwarder' means a person holding itself out to the general public (other than as a pipeline, rail, motor, or water carrier) to provide transportation of property for compensation and in the ordinary course of its business — (A) assembles and consolidates, or provides for assembling and consolidating, shipments and performs or provides for break-bulk and distribution operations of the shipments; (B) assumes responsibility for the transportation from the place of receipt to the place of destination; and (C) uses for any part of the transportation a [surface carrier] carrier subject to jurisdiction [of the Department of Transportation] of under this subtitle."

    In other words, at some time the freight forwarder is supposed to have physical possession of the goods. A broker has no such legal requirement. The broker must have a bond or trust fund of 75k, the FF has no such requirement. I personally will not haul for a FF, non payment by a FF means a trip to court to get my money. Non payment by a broker means, hopefully, only a call to their bonding company and an exchange of paperwork.

     
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