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Nashville, Tennessee, United States
You can reach me at ben@gtu-ins.com. Comments are welcome.

Friday

Freight Forwarder Versus Truck Broker- Know the Difference and Why it's Important

A freight forwarder is a common carrier under the law and with the Federal Motor Carrier Safety Administration (FMCSA). A freight forwarder has the same auto and cargo insurance and claims responsibility as that of a motor carrier.

A broker is not a carrier. Brokers arrange transportation with a carrier, either on behalf of the shipper or behalf of the carrier. Under the law, brokers are not statutorily responsible for loss or damage and cannot issue their own bills of lading with their name in the carrier field.

Freight forwarders handle losses directly.  Conversely, Truck brokers typically forward freight claims onto the trucker who turns it into their insurance carrier for handling.

As you might guess, freight forwarder insurance is generally more expensive than insurance for truck brokers.
The truck broker has no liability under statute for loss; however, they often pick up a potential liability exposure when they execute a contract with a shipper.

How do you tell which is which? A freight forwarder is licensed with a FF# and a truck broker is licensed with an MC#.

Now you know....