Freight Forwarder and/or Freight Broker? Which one you need? Let’s find the answer:

Trucking companies are not the only organizations that play an important role. Some companies provide what some call an “intermediary”.

Consolidation, transportation, and cargo insurance are covered by freight forwarders. A freight broker never takes possession of shipping goods. Different roles in responsibility are what separates these two. The duty of freight forwarders to bear the statutory responsibility for transportation. In case something goes wrong, they are responsible for the goods.

If you plan to register as a forwarder or broker, you need to provide the necessary documentation. This ensures that the relevant responsibility will be directed to a specific registration.

Responsibilities of a Freight Broker:

The freight broker negotiates transactions and processes all documents. They have knowledge of registration and contacts. A broker can usually be seen working from a small office.

The freight broker is responsible for:

• Arranging of transportation by road, sea, rail with a carrier, on behalf of the shipper or freight forwarder.
• Gather owners for shipping lines and shipping lines for owners.
• Outsourcing related to transport and insurance

Freight Forwarder Responsibilities:

• Prepare and issue a bill of lading in connection with the shipping and approval of documentation.
• Issue a bill of lading, if applicable
• Distribution of cargo on behalf of the client
• Align freight rates with shipping lines.
• Booking of cargo with shipping lines as directed by the client
• May or may not do customs clearance
• May or may not be accredited at the customs port, etc., and may not conduct customs clearance if not accredited.

Certain legal requirements for registration, such as shipping and insurance policies, are equal to at least the minimum amount of coverage for carriers. To become a Forwarder, you must first obtain FF authority.

How can DOT Filing Help?

DOT Filing can help you with both the Freight Forwarder and Freight Broker authorities! We will provide all the information about your registrations and forms and will do all applications for you!

Call us at 818-568-0644 and talk with one of our experts today! We look forward to hearing from you.