Freight Forwarders vs. Freight Brokers

In this era of convenience, the business of logistics in the Philippines is thriving at a fast pace and just like any other businesses, there are people who make smooth transportation and logistics possible such as freight forwarders and freight brokers. Sounds fancy and complicated? Let’s break it down. 

A freight forwarder is more involved in the shipping process. He prepares cargo for shipment and supervises its transport from one location to another and they are responsible for ensuring the items reach the final location safely. Freight forwarders usually work on-site to monitor actual processes and operations. 

On the other hand, a freight broker is an intermediary who serves as a liaison between clients who wants to ship their items and the companies who physically move the shipments. They plan the logistics of shipments and help ensure smooth communication between both parties involved and that suppliers and consumers receive the products they want in a timely manner. The freight broker’s location does not really play any significance because he can be situated remotely. 

The technicalities of their work as a freight forwarder and as a freight broker vary in terms of responsibility, legal liabilities, registrations, qualifications and services. 

Despite their differences, freight brokers and forwarders also have many similarities. They are both third-party professionals who transport large shipments. They both have an in-depth understanding of the regulations, expectations and best practices in the shipping and transportation industry. 

The freight forwarding industry in the Philippines can be very tedious, that is why it is very important for us to familiarize ourselves with these terminologies, even more so, for those who are planning to build their own large scale businesses in the future wherein freight forwarding plays a vital role.