Canadian Freight Forwarder Vs. Freight Broker

Would you like to know the difference between a Canadian freight forwarder and a freight broker? You are in the right place.

In the logistics world, understanding the roles of a freight forwarder and a freight broker is important. The reason is that these terms are used interchangeably. However, some differences exist between them. Here, we will get into a deeper understanding of these two roles.

The Role of a Freight Forwarder

A Canadian freight forwarder will take a more wholesome approach to shipping.  A freight forwarder will:

• Handle different aspects of shipping including:
  • Execution of the movement
  • Organizing and
  • Planning the movement of goods
• Function as intermediaries between multiple carriers and shippers
• Manage different aspects of transportation including
  • Insurance
  • Custom Clearance
  • Documentation
• Navigate regulations related to cross-border shipping
• Take care of complexities associated with logistics
• Take physical possession of goods
• Operate their warehouses

The Role of A Freight Broker

A Canadian freight broker is similar to a freight forwarder as both of them act as intermediaries between carriers and shippers. Also, both of them leverage their industry knowledge and networks to bring competitive rates to shippers. Further, both engage in supply chain optimization and administrative tasks. However, some roles are specific to freight brokers. Here is what a freight broker will do:

• A freight broker will:
  • Coordinate shipments
  • Negotiate rates
  • Take care of paperwork
  • Ensure compliance with regulations
  • Not take physical possession of goods

In short, a freight forwarder will take physical possession of goods. Also, the forwarder will store the goods in his warehouse as long as the buyer wants storage. A freight broker will not take physical possession. However, he will play an important role in enabling smooth logistics of goods.

Difference Between A Freight Forwarder and a Freight Broker

Here are some areas in which these two professionals differ:

Logistics Involvement

Freight brokers will take care of paperwork and coordination of logistics. But freight forwarders are more involved. They execute and manage the entire logistics process.

International Expertise

Freight forwarders have specialized knowledge in international shipping. They are experts in navigating hard-to-understand regulations. They can make sure of smooth international operations. But you cannot expect this expertise from a freight broker.

Physical Possession

Fright brokers do not take physical possession of items shipped. But, freight forwarders, if required, might store supplies in their warehouses.

In short, freight forwarders follow a comprehensive approach to international shipment compared to freight brokers.