Freight forwarders have traditionally been compensated by forwarder commission paid by the ocean carrier, often 1.25% of the total freight bill, but there are various formulas. When carriers decide to limit, or cease paying the Freight Forwarder Compensation (FFC), who does pay the forwarder for its services? The exporter.
From various sources we understand that there are others which do not pay brokerage. We haven’t seen notices – the carriers claim it’s in their tariff.