Freight Broker vs Freight Forwarder:  What is Best for You?

If you know anything about transportation, then you have heard of freight brokers and freight forwarders, but what’s the difference? Well, the freight business itself includes transporting goods and materials. It is a pretty broad spectrum industry. Of course, the most well-known types would be trucking companies, though there are quite a few other aspects that have an impact. These types of aspects would be the people in the middle, i.e., the freight brokers and freight forwarders of Australia. While they may seem the same on the surface, they do have differences. 

Freight Brokers

The "broker" section of freight brokers is the important part. A freight broker in Australia does act quite a bit like any other kind of broker. They work to bring the buyer and seller together to make a sale. In a hypothetical situation, the broker is going to be the shipper of the products, while the seller is the carrier (like the trucking company). The freight broker is going to be working out how the sale is going down, taking care of the paperwork, etc. Really, a freight broker could even work out of their home if they wanted to since they are only acting as the middleman between the seller and buyer, not as the actual shipping company itself. 

Freight Forwarders

A freight forwarder in Australia does still act as a middleman but does quite a bit more than a freight broker. The freight forwarder will actually provide the freight services, which includes assembling, consolidation of smaller shipments, and even taking on larger, bulk shipments and turning them into smaller shipments. Sometimes, these services are grouped as part of freight logistics. It takes a physical facility and at least one truck to be able to provide these services. It requires more capital and aspects than freight broking does because of this. 

Which One Should You Go With?

It truly depends on the type of services you need. Do you need a company that is going to be able to handle the paperwork AND ship your goods? If so, you need a freight forwarder. If you only need someone to arrange the details of transportation and take care of the paperwork, then you can go with a freight broker. Either way, you’ll be getting your goods shipped to you and the details are taken care of. It depends on your situation and what kind of services you need.