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What’s the Difference Between a Freight Forwarder and a Customs Broker

What’s the Difference Between a Freight Forwarder and a Customs Broker

The world of import and export is an extremely intricate, and at times, very costly industry. Companies that aim to make it on top of their competition must be able to deliver their freights to its destination in the best possible time consistently and to do just such means that an efficient supply chain and logistics management should be in place.

In the world of logistics and supply chain management, two important players often come on top of mind – the freight forwarders and the customs brokers. While seemingly similar, especially for the novice exporters, these two actually are different entities that function to serve the business with a similar objective: to be able to secure the transportation of the cargo from point A to point B on time and in a compliant manner. 

Most exporters and importers that are just starting in the industry are often advised to retain the services of a freight forwarding company and a customs broker for a plethora of good reasons. One is that it will allow them to move their cargos in a more cost-efficient way than doing it all in-house. 

As mentioned earlier, supply chain management extremely complex as one must have networks with shipping lines, cargo airline, truckers, and warehouses just to move their cargos from their point of origin to their destination. 

Aside from that, they would also need to be able to prepare all the necessary documentation that prove the legality of their incoming or outgoing freights, which could be a very troublesome task to do especially for starting import and export company. 

By retaining the expertise of a freight forwarder and customs brokers, importers and exporters would no longer be in a position where they have to negotiate every shipping lines in the market for the best freight quote, nor have to prepare all the necessary paper works just to obtain customs clearance. All that is left for the company to do is to work with these two entities, which ultimately results in a more efficient and cost-effective supply chain operations. Regardless of the size and scale of your import and export operations, knowing the differences, and more importantly, the value of hiring a freight forwarder and customs broker in your company is highly imperative. To give you more insights about this topic, check out the infographic below from Excelsior Worldwide Freight Logistics.

What’s the Difference Between a Freight Forwarder and a Customs Broker