Freight Forwarder

(See also Broker; Custom House Broker) A broker that functions as an intermediary between shippers (consignors/consignees) and carriers. Functions performed by a freight forwarder may include receiving small shipments (e.g., less than container load) from consignors, consolidating them into larger lots, contracts with carriers for transport between ports of embarkation and debarkation, conducts documentation transactions, and arrange delivery of shipments to the consignees. (MARAD1)

An individual or company that accepts less-than-truckload (TLT) or less-than-carload (LCL) shipments from shippers and combines them into carload or truckload lots. Designated as a common carrier under the Interstate Commerce Act. (ATA2)

An independent business which handles export shipments for compensation.
At the request of the shipper, the forwarder makes the actual arrangements
and provides the necessary services for expediting the shipment to its
overseas destination. The forwarder takes care of all documentation needed
to move the shipment from origin to destination, making up and assembling
the necessary documentation for submission to the bank in the exporter's
name. The forwarder arranges for cargo insurance, makes the necessary
overseas communications, and advises the shipper on overseas requirements
of marking and labeling. The forwarder operates on a fee basis paid by the
exporter and often receives an additional percentage of the freight charge
from the common carrier. An export freight forwarder must be licensed by
the Federal Maritime Commission to handle ocean freight and by the
International Air Transport Association (IATA) to handle air freight. An
ocean freight forwarder dispatches shipments from the United States via
common carriers, books or arranges space for the shipments, and handles the
shipping documentation.

Arranges shipments for customers usually break bulk. Does not actually carry the cargo or conduct business for the ship.