Manufacturing, autos and logistics
Freight forwarder
A company that arranges shipping for customers by buying space from carriers, without usually owning ships or aircraft.
Facts checked against sources onWhat does Freight forwarder mean?
A freight forwarder organizes the movement of goods for shippers: it books space with shipping lines, airlines and trucking firms, handles documents and customs, and combines smaller loads. Most forwarders are asset-light, owning few ships, aircraft or trucks. DSV, Kuehne+Nagel and DHL Global Forwarding are among the largest. Forwarders look at gross profit (sell rate minus buy rate) rather than revenue, because revenue swings with freight prices. Example: a forwarder buys container space at 1,500 and sells it to a customer at 1,800, a gross profit of 300 per container. Scale lets them buy space more cheaply and spread their systems costs.
Where does it come up in case interview prep?
- Landed cost, worked end to endLesson in Sourcing, trade and supply risk
- How logistics works: carriers, forwarders, warehouses, ports and the last mileLesson in Logistics, shipping, ports and supply-chain services
- Logistics players, hubs and trade lanes, trends 2024 to 2026, and how to crack the casesLesson in Logistics, shipping, ports and supply-chain services
Related terms
- 3PL (third-party logistics)A company a business pays to run its warehousing, fulfilment or transport.
- Asset-light modelGrowing a business without owning the heavy assets, by franchising, managing or leasing them.
- TEU (twenty-foot equivalent unit)The standard measure of container volume: one 20-foot container.
- Economies of scaleCost per unit falls as volume rises.
- OEM (original equipment manufacturer)In autos and machinery, the company that designs, assembles and brands the final product.
- Tier 1 supplierA supplier that sells complete parts or systems directly to the carmaker.
- Vehicle platformA shared set of engineering underpinnings used for many car models.
- Battery pack costThe cost of an electric vehicle's battery pack, usually quoted per kWh of capacity.
Learn it in context
See Freight forwarder at work in a lesson from Sourcing, trade and supply risk, with checks as you go.
Spotted something wrong or out of date? Report a mistake. We check every report and correct the page.