Carrier and Freight Forwarder: The Two Key Links in the Supply Chain
In the world of supply chain management, the terms “carrier” and “freight forwarder” often create confusion, as both relate to the transportation of goods. However, their roles are distinct and equally vital for ensuring the smooth flow of products.
A carrier is responsible for the actual, physical transportation of goods from point A to point B. Whether by truck, ship, train, or airplane, the carrier’s duty is to move the cargo safely, within specified timeframes, and in compliance with regulatory requirements. Additionally, carriers handle any damages or losses that may occur during transit, governed by agreements such as the CMR for road transport.
On the other hand, a freight forwarder acts more as a strategic partner and coordinator. They do not physically transport goods but organize and manage all related processes. Their role includes selecting the appropriate mode of transport and carrier, handling documentation such as waybills and customs declarations, and ensuring the shipment is executed with the best combination of cost and time. Particularly in cases requiring multimodal transport, the freight forwarder oversees all stages of the process to ensure seamless cargo movement.
The key distinction lies in responsibility and specialization. The carrier focuses on the physical execution of transportation, while the freight forwarder offers organizational solutions and strategic management. Despite these differences, the two roles are interconnected and often complement each other. The carrier ensures the cargo’s movement, while the freight forwarder organizes the process for maximum efficiency.
The collaboration between these two links is crucial to the effectiveness of the supply chain. It ensures not only that products reach their destination but also that businesses relying on transportation can operate smoothly, with reduced risk and high efficiency.
At Sakaroglou A. & Co KG – Maletschek & Partner Hellas, we specialize in insuring the liability of both carriers and freight forwarders, offering tailored solutions that fully address the unique demands of the supply chain. With our expertise and experience, we understand the nuances of each role and ensure our clients are adequately protected against potential risks, safeguarding their seamless operation.