When choosing a freight forwarder, many clients may face the decision of whether to choose a licensed or an unlicensed freight forwarder. So, what are the key differences between these two? Let's compare them in detail.
Compliance
Licensed freight forwarders must undergo strict audits by government or relevant authorities to ensure their operations meet industry standards. Unlicensed freight forwarders, on the other hand, may not offer the same legal guarantees, and customers need to be cautious when selecting them.
Service Quality
Licensed freight forwarders usually have stronger service capabilities and more extensive industry experience, providing more professional and efficient shipping services. Unlicensed freight forwarders may lack professional qualifications and, as a result, their service quality may be compromised.
Responsibility and Liability
Licensed freight forwarders are bound by law to offer solutions and compensation in the event of shipping disputes or loss of goods. Unlicensed freight forwarders may not be able to provide such guarantees, which could lead to increased risks for clients.
Summary
Choosing a licensed freight forwarder ensures compliance, service quality, and liability protection, reducing potential risks. While unlicensed freight forwarders might offer lower prices, the differences in safety, service, and legal protections are significant and should not be overlooked.
