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A freight broker tends to be transactional oriented fulfilling a company’s particular want on a day-to-day foundation where they exit to the spot market to obtain capability for the shipper. An LSP is second to none on the data collection of shipment data for reporting and analysis for a robust enterprise intelligence (BI) answer on a company’s logistics and provide chain efficiency. With the definitions out of the best way, let’s get into the comparison of a freight forwarder and LSP. Below freight brokerage laws, if the freight broker doesn't pay the carrier for the shipment they moved for your organization, whether or not they go out of enterprise or they just refuse to pay the invoice, then the company must pay the provider, even when the corporate already paid the service for that freight load. That is held by the asset provider used in transferring the freight load.
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