How Does A Freight Forwarder Work?

There is no questioning that when it comes to world of products, unless you get it right in front of the years of your customers, how could you make money? The transportation of your products and goods is vital for your business to survive, which is why people tend to speak to freight forwarders.

Wait..a freight forwarder Рwhat is that? Is that similar to a broker or a transportation company? Do they just provide a service or do they offer overseas and interstate freight pallet transport? How do they operate?

Catch your breath because we have the answers for you below:

How Was It Before Freight Forwarders?

Back in the old days, when it came to getting your product from one place to another, all you would have to do is call up a transport company, tell what you wanted and they will do the rest for you. The problems came soon after. The transport companies could charge whatever they wanted, there was more pressure on businesses to do the hard work themselves and thanks to international trade laws, fuel prices and economic factors, the whole process became more expensive and difficult for business owners. Enter the freight forwarder.

What Do They Do?

As time wore on people need a helping hand when it comes to the transportation of goods, whether overseas with a massive ship or down a quick¬†road freight in Melbourne. These people arose quickly and became a vital component for businesses from both sides – the transportation companies and the businesses themselves. Forwarders – also known as “brokers”- would be the people that coordinate the movement of goods from place to place and put together a series of carriers to get it there. They calculate all the key logistics (distance, cost, type of product, quickest route and so forth) to provide you with a firm plan to transport the goods.

So Forwarders And Brokers Are The Same?

While there is a conception that both freight forwarders and freight brokers are the same, and do the same role, there is one substantial difference between the two. The broker doesn’t take possession of the freight and works as a middleman to connect shippers and carriers. The forwarder acts out the whole process: taking possession of the product, organise the transportation and do all the hard yards in between. That is the difference between the two roles in the world of freighting.