A Freight Forwarder is a logistics agent that arranges the transportation of cargo on behalf of a shipper (and sometimes a consignee) but does not itself act as a carrier. Unlike an NVOCC, a freight forwarder acts as an agent of the shipper — it does not issue its own bill of lading as carrier and does not assume legal liability for the cargo's safe transit.
Ocean freight forwarders must be licensed by the Federal Maritime Commission (FMC) as Ocean Transportation Intermediaries (OTIs) and post a $50,000 surety bond. Air freight forwarders typically operate as Indirect Air Carriers (IACs) under TSA regulations.
Forwarder services include:
- Booking ocean, air, rail, or truck capacity with underlying carriers
- Preparing and filing export documentation (commercial invoice, packing list, EEI, certificate of origin)
- Arranging cargo insurance
- Coordinating door-to-door delivery
- Filing ISF on the importer's behalf
Many forwarders also operate as NVOCCs or customs brokers, wearing different hats for different services. The role distinction matters legally — when acting as a forwarder/agent, the company is not liable for cargo loss; when acting as NVOCC under its own house bill, it is.
For exports, the freight forwarder is often the "U.S. Principal Party in Interest's Authorized Agent" filing Electronic Export Information through AES on the exporter's behalf.