Just What Is a Freight Forwarder? And Why Does It Use a Customs Broker?

Ever been confused as to what a freight forwarder actual does, and where does a custom's broker come in?

Freight Forwarders are companies that arrange the transportation of goods on behalf of shippers. They don't move the goods themselves but coordinate with various carriers (like shipping lines, airlines, trucking companies, etc.) to ensure smooth logistics. They handle documentation, rate negotiations, shipment tracking, and more.

Customs Brokers, on the other hand, are licensed experts who help businesses clear their goods through customs. They ensure shipments comply with all applicable laws, tariffs, and taxes, and handle all necessary documentation.

Why Use a Customs Broker?

1. Expertise in Regulations: Customs brokers are well-versed in the complex regulations of different countries, ensuring compliance and avoiding costly delays.

2. Efficiency: They streamline the customs clearance process, saving time and reducing the risk of errors.

3. Cost-Effective: By avoiding penalties and ensuring timely clearance, customs brokers can save businesses money in the long run.

In essence, freight forwarders use customs brokers to navigate the complexities of international shipping, ensuring that goods move efficiently and legally across borders.

Sources:

1. Indeed Editorial Team. (n.d.). Freight forwarder: Definition and benefits. Indeed. Retrieved February 9, 2025, from https://www.indeed.com/career-advice/career-development/freight-forwarder-meaning?form=MG0AV3

2. Maersk. (2025, January 23). What is a customs broker and why is it important?. Retrieved February 9, 2025, from https://www.maersk.com/logistics-explained/customs-and-compliance/2025/01/23/customs-broker?form=MG0AV3

3. Here's the APA citation for the article you provided:

   Logos Logistics. (n.d.). Freight forwarding: Definition & benefits. Retrieved February 9, 2025, from https://www.logos3pl.com/glossary/freight-forwarding/?form=MG0AV3