What is the difference between a carrier and a freight forwarder?

Aug 08, 2024

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1, Definition and role positioning
Carrier: A carrier refers to a transportation company or individual who is actually responsible for transporting goods from one place to another. They own or lease transportation vehicles (such as ships, airplanes, trucks, etc.) and provide cargo transportation services in accordance with the transportation contract signed with the shipper or freight forwarder. The carrier is the actual executor in logistics transportation, and its responsibility is to ensure the safe, timely, and complete delivery of goods to the destination.
Freight forwarder: As mentioned earlier, a freight forwarder is an organization or individual specialized in freight forwarding services. They do not directly own or operate transportation vehicles, but act as intermediaries to provide comprehensive services for the transportation of goods to shippers. The responsibilities of a freight forwarder include but are not limited to booking, arranging transportation, coordinating loading and unloading, handling customs and inspection procedures, providing cargo tracking, etc. They provide efficient and convenient logistics solutions for shippers by integrating various resources.
2, Business scope and service content
The carrier's business scope: The carrier's main business scope is to provide specific transportation services. They choose suitable transportation vehicles and routes according to the requirements of the shipper or freight forwarder to transport the goods from the place of origin to the destination. During transportation, the carrier is responsible for the safe storage and transportation management of the goods, ensuring that they are not lost or damaged. In addition, carriers need to comply with relevant laws, regulations, and transportation rules to ensure the legality and standardization of transportation activities.
The service content of freight forwarders: The service content of freight forwarders is more extensive and diverse. They not only provide transportation arrangement services for shippers, but also involve multiple aspects such as customs declaration and inspection, insurance, warehousing, logistics consulting, etc. Freight forwarders provide one-stop logistics services to shippers by integrating various logistics resources. They rely on their professional knowledge and rich experience to help shippers optimize logistics solutions, reduce logistics costs, and improve logistics efficiency.
3, Relationship with customers
The relationship between carrier and customer: The legal relationship between carrier and customer is usually established through a transportation contract. The customer (shipper or freight forwarder) hands over the goods to the carrier for transportation and pays the corresponding freight charges. The carrier shall provide transportation services in accordance with the contract to ensure the safe, timely, and complete delivery of goods to the destination. In this process, communication and collaboration between the carrier and the customer are crucial to ensure the smooth progress of transportation activities.
The relationship between freight forwarders and customers: The relationship between freight forwarders and customers is more of a service and being served relationship. Freight forwarders provide professional logistics services to help customers solve logistics problems and improve logistics efficiency. Their cooperation with customers is often long-term and stable, as freight forwarders can flexibly adjust logistics plans and provide personalized services based on customer needs and changes.

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