Freight Broker
Also known as: Broker, Transportation Broker, Freight Agent
Definition
A freight broker acts as a middleman between businesses that need to ship goods and trucking companies that haul them. They don’t own trucks—they match loads to available capacity and handle the logistics.
What Freight Brokers Do
| Service | Description |
|---|---|
| Carrier matching | Find trucks for your loads |
| Rate negotiation | Get competitive pricing |
| Tracking | Monitor shipment status |
| Claims handling | Manage freight issues |
| Documentation | BOLs, PODs, paperwork |
Broker vs. 3PL vs. Carrier
| Entity | Assets | Service Scope |
|---|---|---|
| Broker | No trucks | Transactional matching |
| 3PL | May own assets | Comprehensive logistics |
| Carrier | Owns trucks | Direct transportation |
Why Use a Freight Broker
Advantages:
- Access to many carriers
- Market rate expertise
- Capacity during tight markets
- Less admin work
- Flexibility per shipment
Considerations:
- Additional markup on rates
- One more party in chain
- Varying service quality
Broker Licensing
Freight brokers must have:
- FMCSA broker authority (MC number)
- $75,000 surety bond
- Process agent designation
- Proper insurance
Finding Reliable Brokers
- Check FMCSA registration
- Verify bond and insurance
- Ask for references
- Review online reputation
- Test with small shipments first
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