What Is The Difference Between A Broker And A Freight Forwarder?
United States Code, Title 49, Reduced to Layman's Terms by the Law School of Cornell University
- Broker: The term "broker" means a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.
- Carrier: The term "carrier" means a motor carrier, a water carrier, and a freight forwarder.
- Freight forwarder.— The term "freight forwarder" means a person holding itself out to the general public (other than as a pipeline, rail, motor,
or water carrier) to provide transportation of property for compensation and in the ordinary course of its business:
- ► Assembles and consolidates, or provides for assembling and consolidating shipments and performs or provides for break-bulk and distribution operations of the shipments;
- ► Assumes responsibility for the transportation from the place of receipt to the place of destination; and
- ► Uses for any part of the transportation a carrier subject to jurisdiction under this subtitle.
The term does not include a person using transportation of an air carrier subject to part A of subtitle VII.