Freight forwarder

Federal law defines a freight forwarder as a company holding itself out to the public to transport property for compensation that assembles and consolidates shipments, assumes responsibility from receipt to destination, and uses regulated carriers for any part of the move (49 U.S.C. 13102). FMCSA registers surface freight forwarders under their own authority, shown with an FF docket prefix.

The key difference from a broker is responsibility. A broker arranges transportation; a forwarder takes responsibility for the shipment itself. Forwarders must also keep a surety bond or trust fund at the same $75,000 level as brokers (49 CFR 387.403 and 387.405).

For a factor, a forwarder can be the debtor on a carrier's invoice, or appear as the shipper on a bill of lading. Underwrite it like a broker: credit, payment history, active FF authority and bond or trust status. International ocean and air forwarders are licensed under different regimes, so check the right regulator for those.