Carrier Terms Intermediate

Freight Forwarder

Also known as: Forwarder, Forwarding Agent, NVOCC

Definition

A freight forwarder acts as an intermediary between shippers and transportation carriers. They don’t own trucks or planes but coordinate the entire shipping process, booking cargo space, preparing documentation, and managing logistics.

What Freight Forwarders Do

  • Book cargo space with carriers
  • Negotiate shipping rates
  • Prepare shipping documentation
  • Arrange pickup and delivery
  • Handle customs clearance
  • Track shipments
  • Manage cargo insurance
  • Consolidate shipments (LCL)

When to Use a Freight Forwarder

Ideal for:

  • International shipping
  • Complex multi-leg shipments
  • Ocean and air freight
  • When you lack carrier relationships
  • Customs compliance needs

Freight Forwarder vs. Customs Broker

Freight Forwarder Customs Broker
Arranges transportation Clears customs
Books cargo space Files entry documents
Coordinates logistics Ensures compliance
May include brokerage Licensed specialist

Many forwarders offer both services.

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