Freight forwarder

Definition and stakes

Portrait of Fred M. Vinson Fred M. Vinson,  Chicago Milwaukee St. Paul Pacific Company v…

“ The freight forwarder charged a rate covering the entire transportation and made its profit by consolidating the shipment with others in carload quantities to take advantage of the spread between carload and 1. c. 1. rates. It held itself out not merely to arrange with common carriers for the transportation of the goods, but rather to deliver them safely to the consignee. The shipper seldom if ever knew which carrier would be utilized in the carriage of his shipment. ”
Source: Wikisource

Portrait of Fred M. Vinson Fred M. Vinson,  Chicago Milwaukee St. Paul Pacific Company v…

“ In its relations with these carriers, however, the status of the forwarder is still that of shipper. It is this duality of character that raises the question in this case.
Section 1013 of the Act [3] provides that the Carmack Amendment, 34 Stat. 593, as amended, 49 U.S.C. § 20 (11) [4] and (12) , [5] 49 U.S.C.A. § 20 (11, 12) , shall apply to freight forwarders 'in the case of service subject to this chapter' (Part IV) , and that the freight forwarder shall be deemed both the receiving and delivering transportation company for the purposes of such § 20 (11) and (12) .
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Source: Wikisource

Portrait of Fred M. Vinson Fred M. Vinson,  Chicago Milwaukee St. Paul Pacific Company v…

“ The destination set out in the railroad bill of lading is the forwarder's break-bulk point. At that point the carload is broken up; some shipments may be distributed locally, some sent by truck to off-line destinations, and some consolidated into carloads for reshipment to further break-bulk points. The railroad has no knowledge of the contents of the car, the identity of the individual shippers, or the ultimate destinations of the consignments. The forwarder has an unqualified right to select the carrier and route for the transportation of the freight. ”
Source: Wikisource

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