When it comes to shipping cargo, there are two main types of companies that can help you: freight forwarders and freight brokers. While the terms are often used interchangeably, there are some key differences between the two. Understanding the difference between a freight forwarder and a freight broker is essential for choosing the right service for your needs. The most significant difference between a freight broker and a freight forwarder is their scope of services. Freight brokers specialize in organizing cargo logistics for shipments, from reserving cargo space on ships and planes to preparing customs documents.
On the other hand, freight forwarders usually only organize transportation and manage the shipping process. However, freight forwarders can offer more experience and guidance when it comes to organizing transportation services and managing the shipping process. Another difference between freight forwarders and freight brokers is the type of bond they need to obtain a license from the FMCSA. Freight brokers must obtain a BMC-84 guarantee bond, while freight forwarders must obtain a BMC-85 trust fund. BMC-84 bonds are a popular choice among freight brokers and freight forwarders because they require a much lower initial expense than BMC-85 trust funds. Whether you need to move your cargo across the country or around the world, it is important to understand the differences between a freight broker and a freight forwarder.
Freight agents offer a one-stop shop for all your shipping needs, from reserving cargo space to preparing customs documents. On the other hand, freight forwarders can provide more experience and guidance when it comes to organizing transportation services and managing the shipping process. At Brimich Logistics and Penske Logistics, we have the necessary experience to manage all your logistics, brokerage and freight brokerage needs. We understand that it can be difficult to precisely distinguish between the functions of a freight forwarder and a freight forwarder, so we are here to help you make the right decision for your shipping needs.