Freight Forwarders

Written by Kathleen Gagne
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A freight forwarder is defined as a person or company that acts as an agent on behalf of a shipper. Freight forwarders, especially those who work with small or medium-sized businesses, often get involved in consolidating shipments for less than load (LTL) runs. They may also work for shippers who need dedicated lanes because they ship to specific locations on a regular basis.

Freight Brokers

Online freight brokers connect shippers with carriers. They handle all of the negotiations, insure that the contract is solid and meets the appropriate guidelines, and even make sure that that carrier meets high standards such as safe and on-time deliveries. They also find the best rates for both shippers and carriers and may get the shippers lower rates based on volume business with specific carriers.

In one sense they act as freight forwarders, but their connections and services go beyond that level. As logistics management professionals, they can reduce the amount of time and money shippers spend on getting their goods to final destinations. By combining loads and working to reduce empty backhauls, they keep prices low by keeping trucks running and full.

Keeping Costs Down

Freight forwarders are ideal contacts for small business owners. Using shippers that run dedicated lanes, freight forwarders combine small shipments so that no one pays for a half-empty truck or the gas it takes for trucks to return empty. Using freight forwarders is a very efficient and cost-effective way to get products to their destinations with minimal investments in time and dollars.

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