Freight Broker vs Freight Forwarder

March 27, 2025

Difference between Freight Broker and Freight Forwarder

Freight Broker vs Freight Forwarder: What’s the Difference?

The logistics industry is vital to domestic and global trade, ensuring goods move efficiently across borders and supply chains. Within the industry, two of the most important roles are freight brokers and freight forwarders.

While both are attractive options in terms of careers, there are some big differences between the two that you need to consider before deciding whether to become a broker or a forwarder.

In this guide, we discuss these differences in full. We also cover the pros and cons of each role, job outlooks, how to get started, and much more.

What Is A Freight Broker?

A freight broker acts as an intermediary between shippers and carriers. Essentially, they facilitate the process of freight moving from one point to another and assist in the negotiations between the two parties.

Since freight brokers develop relationships with shippers and carriers, they’re typically able to broker deals that are beneficial for both parties.

Responsibilities of a freight broker

As mentioned, the primary responsibility of a broker is to serve as the middleman between shippers and carriers, which means they never have to handle any freight themselves.

However, their role isn’t exclusively limited to negotiating rates and other aspects of deals. Some of their other responsibilities include:

Handling various admin tasks and paperwork like shipping manifests.
Generating sales leads and providing customer support.
Tracking and monitoring shipments in real time.

Pros and cons of becoming a freight broker

✅ Pros	❌ Cons
The freight and logistics market is expected to grow to $8.98 trillion by 2031, meaning there will be plenty of job opportunities for freight brokers.	If you want to start your own freight brokerage, it can require a significant initial investment.
In the freight industry, salaries for brokers depend on relationships, experience, and market knowledge. This means you can increase your earnings through your own hard work.	Being a freight broker can be relatively stressful due to issues like cargo loss or damage claims.
Brokers are able to work remotely and independently with flexible schedules.	Maintaining good relationships with shippers and carriers can be challenging and time-consuming.

What Is A Freight Forwarder?

Freight forwarding is significantly different from freight brokering. While a freight broker doesn’t handle any cargo themselves, a freight forwarder usually stores, packs, and ships the freight. This is all done under a freight forwarder’s own operating authority, meaning they have a high level of responsibility for shipped goods.

Responsibilities of a freight forwarder

A freight forwarder specializes in transporting cargo from point A to B. This may sound relatively simple, but there are plenty of responsibilities that go along with the role, such as:

Documentation, booking, and customs clearance.
Researching and planning the most appropriate routes for shipments.
Negotiating terms and rates with carriers.
Processing paperwork like commercial invoices, customs documentation, and certificates of origin for international shipping.
Ensuring insurance coverage is in place and helping clients with claims if required.
Finding the most efficient and cost-effective shipping solutions for clients.

Pros and cons of becoming a freight forwarder

✅ Pros	❌ Cons
Freight forwarding is critical to global trade, making salaries highly competitive.	Being a freight forwarder means working in high-stress environments, so you need to be able to act quickly under pressure.
Freight forwarders routinely handle international shipments, exposing them to global trade and diverse industries.	As freight forwarders handle freight themselves, they must take responsibility for any errors.
Freight forwarding is dynamic and provides opportunities for continuous learning and skill development.	Due to global time zones, you’ll often have to work outside of standard business hours.
Freight forwarders are highly independent, and the role is ideal for those who thrive on self-reliance and honing their decision-making abilities.	You have to stay up to date with complex and ever-evolving international trade regulations.

Freight Forwarder Vs Broker: Key Differences

Below, we’ve compiled a table highlighting the main differences between the roles of a freight broker and a freight forwarder.

Factor	Freight Broker	Freight Forwarder
Possession of goods	Doesn’t take possession of freight	Takes physical possession of freight
Services Offered	Arranges transportation and manages the shipping process	Offers a wide range of services like storage, packing, and customs clearances
Liability	Not liable for cargo loss or damage	Responsible for loss or damage to shipments
International Shipping	Doesn’t usually handle international shipments	Specializes in international shipments and customs procedures
Carrier Relationships	Works with multiple carriers to find the best rates	Works with select carriers for reliability
Registration	Must register with the FMCSA as a broker	Must register with either the FMCSA or FMC
Pricing Structure	Usually charges a percentage of the shipment costs	Typically charges a flat fee for their services

How To Get Started As A Freight Broker Or Freight Forwarder

Both freight brokers and freight forwarders must take several steps before they can start working in the industry.

Becoming a freight broker

To start a career as a freight broker, you need to:

Have a high school diploma or equivalent
Be at least 18 years old
Obtain an FMCSA license
Secure a $75,000 surety bond

If you’d like to learn more, check out our guide on [how to become a freight broker].

Although no formal education is required, the 90-Day Freight Broker Course equips you with the skills and knowledge you need for a successful career.

The fully comprehensive course takes just 100 hours and costs $890. During your studies, you’ll learn about the most important elements of freight brokerage, including:

An introduction to transport law
Researching and vetting carriers
Accounting
Dispatching loads

Plus, we’re so confident in the course that we offer a 30-day money-back guarantee. Join the waiting list now to become an established freight broker in just 90 days!

Becoming a freight forwarder

The steps involved in becoming a freight forwarder depend on whether you want to work with land or sea transportation. For instance, if you want to work solely in the trucking industry, you’ll need an FMCSA license. On the other hand, if you only want to work with sea cargo, you’ll need an FMC license.

Land

A $75,000 surety bond (BMC-84) or trust fund.
Use the FMCSA’s Unified Registration System and complete Form OP-1, which has a $300 fee.
Submit your proof of insurance form (BMC-34) to the FMCSA within 90 days of application.

Sea

$50,000+ Ocean Transportation Intermediary (OTI) bond.
Register with the FMC and appoint a qualified individual.
Submit Form FMC-18, which comes with a $250 fee.

Freight Forwarder Vs Broker Career Outlook

Whether you want to broker deals for local trucking companies or set up an international freight-forwarding business, the future looks bright.

In terms of job growth, there are projected to be around 30,100 new job openings for freight brokers within the next 10 years. For freight forwarders, this number is expected to be around 6,090 by 2029.

The other good news is that annual earnings for each role are relatively high. To get you up to speed, let’s examine the salaries of freight brokers and forwarders.

Freight broker salaries

In 2025, the average freight broker salary is $72,000 per year. However, this varies widely depending on experience. For instance, entry-level positions tend to start at around $50,000 per year, and senior-level positions can start at about $107,500 per year.

Salaries also differ depending on where you’re based. To demonstrate this, here’s a table with the average salaries for various states:

State	Average Annual Salary
Texas	$102,500
California	$100,000
Washington	$75,711
New York	$55,120
Florida	$62,500

Freight forwarder salaries

The average annual salary for freight forwarders is $51,581, significantly lower than the average freight broker salary. Again, this varies by experience, with entry-level positions at around $46,800 per year and more senior positions at about $65,000 per year.

As with freight brokers, these salaries also vary by region, as this table highlights:

State	Average Annual Salary
Texas	$46,800
California	$49,586
Washington	$49,920
New York	$55,000
Florida	$55,000

FAQs

1. Can a freight broker also be a freight forwarder?

Yes, freight brokers can also operate as freight forwarders. However, to perform both roles, you’d need to obtain the necessary licenses and registrations for each.

2. Which role is more suitable for beginners in the logistics industry?

Becoming a freight broker is typically better for beginners than becoming a freight forwarder. This is for several reasons, such as:

Relatively simpler responsibilities
Lower barrier to entry
It’s easier to gain experience
Less liability

3. Do freight brokers and forwarders need cargo insurance?

Cargo insurance isn’t a legal requirement for freight brokers or forwarders. However, this type of insurance is often a contractual requirement for freight forwarders.

Final Thoughts

Whether you decide to become a freight broker or a freight forwarder, both are excellent career moves. The key differences lie in the responsibilities of each role, with brokers mainly focusing on domestic freight and forwarders handling international movements of goods.

If you want to get a head start in your journey to becoming a freight broker, sign up for the 90-Day Freight Broker course today.

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