Trucking Glossary

Freight Broker

An intermediary who connects shippers needing to transport goods with carriers who have the capacity to haul them.

A freight broker is a middleman between shipping companies and truck carriers. Shippers have goods that need to be moved, and trucking companies have empty trailers. The broker negotiates rates, finds available trucks, tracks the shipment progress, and handles the billing. They earn a profit by charging the shipper more than they pay the carrier to haul the load.

Brokers play a key role in matching freight capacity. Small trucking companies rely on brokers to find loads on online boards, keeping their trucks moving. Brokers must carry a bond and be registered with the FMCSA to operate legally. A good broker helps resolve disputes when shipments are delayed, damaged, or held up at warehouse docks.

Frequently Asked Questions

No. Freight brokers do not own commercial vehicles. They arrange transportation by hiring independent carriers or fleets.
A required $75,000 surety bond that ensures the broker pays the carriers they hire if their business fails.
They charge the shipper a flat rate for a haul, pay the carrier a lower rate, and keep the difference as their broker fee.

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