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Freight Forwarder
Definition
A freight forwarder arranges the transportation of other people's shipments, often consolidating them; U.S. law defines surface freight forwarders and ocean freight forwarders separately.
What it means
For surface transportation, 49 U.S.C. 13102 describes a freight forwarder as a company that "assembles and consolidates" shipments, "assumes responsibility for the transportation from the place of receipt to the place of destination," and uses a carrier for part of the move.[1]
For ocean shipping, the Shipping Act defines an ocean freight forwarder as one that dispatches shipments via a common carrier, "books or otherwise arranges space for those shipments on behalf of shippers," and processes the documentation.[2] U.S.-based ocean freight forwarders and NVOCCs must be licensed by the Federal Maritime Commission.[3] How a forwarder differs from a freight broker is in freight broker vs. freight forwarder.
Example
An importer buying from three factories in one region uses a forwarder that books the ocean space, consolidates the three suppliers' cartons into one container and handles the export paperwork.
Related
Related terms
- Freight BrokerA freight broker arranges truck transportation for compensation, for shippers or carriers, without being the...Glossary
- NVOCCAn NVOCC (non-vessel-operating common carrier) is an ocean carrier that issues its own bills of lading and...Glossary
- Customs BrokerA customs broker is a person or company licensed by U.S. Customs and Border Protection to conduct customs...Glossary
- Third-Party LogisticsA third-party logistics provider (3PL) is a company that performs transportation, warehousing or other...Glossary
- Freight ConsolidationFreight consolidation is combining several smaller shipments into one larger load, such as several LTL...Glossary
Related questions
- Freight Broker vs. Freight Forwarder: What Is the Difference?A freight broker arranges truck transportation between shippers and motor carriers for a fee and must be...Answer
- FCL vs. LCL: Which Should You Choose?Choose FCL (full container load) when you have enough cargo to justify a whole container, want it sealed from...Answer
- Master vs. House Bill of Lading: What Is the Difference?When an NVOCC or forwarder consolidates several shipments, the ocean carrier issues one master bill of lading...Answer
Sources
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13102, Definitions,” Federal statute. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “46 U.S. Code § 40102, Definitions (Shipping Act),” Federal statute. Accessed September 30, 2026.
- Federal Maritime Commission, “Apply for a License or Request a Foreign Registration,” Government guidance. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.