Freight forwarders play vital roles in keeping the supply chain moving by serving as intermediaries between the shippers and the carriers who will bring the goods to their final destination. While freight forwarders do not transport the shipments, they offer multiple transportation modes, including ocean freight, road transport, air freight, and rail freight.
Because of the reliance on freight forwarders, carriers and distributors need protection against potential misconduct or law violations committed by the freight forwarders. For this reason, the Federal Motor Carrier Safety Administration (FMCSA) requires freight forwarders to obtain licenses and either purchase BMC-84 freight broker bonds or open BMC-85 trusts. To prevent a potential freight broker bond claim, forwarders need to take care when building out their carrier networks to ensure they contract with reliable partners in every transportation mode to secure the best possible price while ensuring the goods will reach their destinations on time.