THE DIFFERENCE BETWEEN FREIGHT FORWARDERS AND FREIGHT CARRIERS

The difference between freight forwarders and freight carriers

The difference between freight forwarders and freight carriers

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Roles and responsibilities


Freight carriers are directly responsible for the physical transportation of goods and own or rent the means of transport, such as trucks, ships, and aircraft. They are the actual executors of the transportation of goods, transporting goods from one place to another. For example, a road freight company with its own fleet of trucks will have the driver drive the vehicle to transport the goods from the warehouse of dispatch to the place of receipt.

Freight forwarders act as intermediaries, mainly coordinating the relationship between the consignor and the carrier. They do not directly transport the goods but rather find a suitable carrier for the consignor and arrange for transport, including booking space (ocean freight, air freight), customs clearance, inspection, and other procedures. For example, a freight forwarder will select the appropriate shipping schedule and space from among the many shipping companies based on the consignor’s goods and transport needs and then contact the shipping company to arrange for the goods to be loaded on the ship.

Legal liability


Freight forwarders are directly responsible for the safe and timely delivery of goods during transportation. If goods are damaged, lost, or delayed, the carrier is liable to the sender or recipient for compensation by the transport contract and relevant laws and regulations. For example, in road transport, if the goods are damaged due to the driver’s negligence, the carrier must compensate for the loss of the goods.

Freight forwarder: Generally, the freight forwarder is only liable to the sender if it is at fault (e.g., by choosing an unsuitable carrier, making mistakes in formalities, etc.). For example, if the freight forwarder fails to declare the nature of the goods correctly, resulting in the goods being held up at customs, the freight forwarder will be held responsible.

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