Freight Forwarder vs Broker
Freight Forwarder and Broker have different duties in transporting the goods from one place another. A freight forwarder assists in the careful storage of the cargo of the clients at his warehouse. A broker on the other hand is not a carrier. In fact a broker would arrange transportation with a carrier.
A broker works either on behalf of the shipper or on behalf of the carrier. One of the main differences between a freight forwarder and a broker is that a freight forwarder can be held statutorily responsible for damage or loss of the cargo. Moreover he issues bills of lading with his name in the corresponding column.
A broker on the other hand cannot be held statutorily responsible for damage or loss of the cargo. A broker does not issue bills of lading with his name in the corresponding column. This is one of the main differences between a freight forwarder and a broker.
Brokers simply forward freight onto the carrier. It is their main job. Some brokers offer contingent cargo insurance too. A freight forwarder is very much covered by cargo insurance. In fact he would stand by the interest of the customer and would work to resolve all his issues. He does everything willingly. A broker does not get into the act of providing cover for the customer’s cargo willingly.
An instruction of the client is the foremost concern of a freight forwarder. Arrangement of transportation is the primary concern of a broker. It is quite natural that a freight forwarder is looked upon as an alternative for a shipping line. A broker on the other hand is not looked upon by the client as an alternative for a shipping line. In fact he has no or less connection with the shipping line.
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