What is Freight Forwarder?

A freight forwarder is a logistics intermediary that arranges the transportation of goods from the point of origin to the final destination on behalf of the shipper. Freight forwarders do not typically own the ships, planes, or trucks — they coordinate with carriers, book space, negotiate rates, prepare shipping documentation, arrange insurance, and handle logistics across multiple transport modes. They are licensed by the Federal Maritime Commission (FMC) for ocean freight and by the IATA for air freight. Freight forwarders are distinct from customs brokers, though some firms hold both licenses.

Freight forwarders handle logistics; customs brokers handle duty assessment and compliance. For CAPE refund purposes, your customs broker (not your freight forwarder) is the relevant party. However, freight forwarders often work closely with brokers, and some full-service logistics companies provide both forwarding and brokerage under one roof.