Freight forwarder vs carrier: roles, liability and whom to book

Forwarder and carrier compared

A road carrier owns trucks and drives your goods. A freight forwarder organises the transport and books a carrier for you, or uses its own trucks. The two roles follow different rules. They also differ in the licence, in who checks the truck and in who answers to you for the goods. The table shows the general position in Lithuania.

A freight exchange is a third option. It is an online market where companies list loads and free trucks. When you book a truck on an exchange, you agree the transport with that carrier yourself. RNJ Transport also uses freight exchanges to find extra trucks, and we check each carrier before the load.

What a freight forwarder (ekspeditorius) is under Lithuanian law

The Lithuanian Civil Code sets the rules for freight forwarding in Chapter XLI, Articles 6.824 to 6.829. Article 6.824 defines forwarding as organising the carriage of goods and the related work in the forwarding contract. The forwarder works for a fee, at the client’s cost. The forwarder may sign the carriage contract in its own name or the client’s name.

Forwarding needs no licence in Lithuania. The Lithuanian Transport Safety Administration (LTSA) says that forwarding is not a licensed activity. The forwarding contract is made when the forwarder confirms your order (Article 6.824). The contract can be made in writing, or by an order sent by a means of communication such as email (Article 6.825).

The same chapter applies when a carrier does a forwarder’s work under a contract. Under Article 6.824, a forwarding contract can include the duties below.

• Organising the carriage by a type of transport and a route that the forwarder or the client chooses
• Signing carriage contracts and other contracts in the forwarder’s name or the client’s name
• Dispatch, loading and unloading of the goods
• Extra services named in the contract, such as checking the quantity and condition of the goods, paying fees or storing the goods

Who is liable for the goods

The carrier is generally liable for loss of or damage to the goods and for delay (CMR, Article 17). Liability runs from receipt of the goods until delivery. The forwarder is liable to you as the forwarding contract states (Civil Code, Article 6.826). When another carrier drives, the forwarder still answers to you for the contract (Article 6.828).

The rules form a chain. The carrier answers for its staff and for other carriers it uses, as for its own acts (CMR, Article 3). Sometimes several road carriers move the goods under one contract and one CMR note. Then each of them is responsible for the whole trip (CMR, Article 34). A contract term that differs from the CMR rules is generally void (CMR, Article 41).

The forwarder may show that the carrier caused the breach. Then the forwarder answers to you under the same rules as the carrier answers to the forwarder (Article 6.826). On an international road trip, those are usually the CMR rules. For loss or damage, CMR limits compensation to 8.33 SDR per kilogram of gross weight, about 10 EUR (CMR, Article 23).

We describe the general position. Your contract decides the details, so read it before loading. Tell us the value of the goods when you book, so we can talk about cover before the truck leaves.

When a forwarder is treated as the carrier

A forwarder that moves your goods in its own trucks does the carrier’s work on that trip. Lithuanian courts also look at what the forwarder agreed to do. Generally, a forwarder that agrees to act as the carrier answers to you as a carrier under CMR. A forwarder that only organises the trip answers under the forwarding contract.

The answer depends on the contract and the facts of each load. Before you book, ask the company which role it takes. Then check the points below in the order confirmation and on the CMR consignment note. The note must give the carrier’s name and address (CMR, Article 6).

If a claim arises, ask a transport lawyer to read your contract.

• Role: the order confirmation calls the company a forwarder or a carrier
• Price: one price for the whole carriage, or a fee for organising it
• CMR note: the company named as the carrier
• Subcontracting: whether the company may give the trip to another carrier
• Liability: the rules and limits that apply if goods are lost or damaged

When to book a forwarder or a carrier

Book a carrier direct when its own trucks run your route on your dates. You then check the carrier yourself. Book a forwarder when you ship on several routes or have no time to check carriers. With a forwarder, you deal with one company on every route. For goods of high value, decide on cover before loading, whichever you book.

RNJ Transport is mainly a forwarder. Our own 2 MAN TGX trucks carry full loads, mostly between Lithuania and Sweden. Checked partner carriers drive our other lanes. These run from the Netherlands and Belgium to Lithuania and Latvia, between Lithuania and Norway, and between Germany and the Baltic states. We check every partner carrier before every load.

Either way, you have one contact person for your load and one invoice from RNJ Transport. We hold EU Community licence LIC-008592-EBKR, valid to 19 July 2031. After delivery, you get a copy of the signed CMR consignment note.

Questions to ask before you book

Ask these questions before the first load, whether you book a forwarder or a carrier. Get the answers in writing, in the order confirmation or the general terms.