Freight forwarding introduces an intermediary between the shipper and the carrier, with the freight forwarder acting as the shipper’s agent, responsible for organizing the transport of shipments to their final destination. In this role, the freight forwarder may:
- Help plan the freight route in coordination with the shipper
- Assist with all necessary paperwork and regulatory applications
- Negotiate shipping rates with carriers
There is often some confusion between freight forwarders and NVOCCs (Non-Vessel Operating Common Carriers), but the distinction is straightforward. A freight forwarder is typically appointed to act as the shipper’s representative, while an NVOCC functions more like a carrier—contracted to perform a transportation service rather than to represent the shipper’s interests.
While there is some operational overlap between the two—especially since many NVOCCs also operate as freight forwarders—they remain distinct service options that meet different needs in the shipment transportation process.