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Freight Broker

A licensed intermediary that connects shippers with trucking carriers to move freight.

A freight broker is a licensed intermediary (licensed by the FMCSA) that connects shippers who need to move freight with trucking companies that have available capacity. Brokers don't own trucks — they earn a margin by matching capacity to load and managing the transaction between shipper and carrier.

Freight brokers provide value by maintaining relationships with thousands of carriers, providing market rate transparency, handling carrier vetting and insurance verification, and managing the paperwork (bill of lading, proof of delivery). For shippers without high enough volume to negotiate direct carrier contracts, a broker is often the most practical solution.

For brands working with 3PLs, freight brokers are most relevant for inbound freight (getting inventory from manufacturer to 3PL) and one-off large outbound moves. Many 3PLs have in-house freight brokerage services or preferred broker partners — leveraging their relationships often yields better rates than a brand going direct.

Key Points

Licensed by FMCSA — can be verified at safer.fmcsa.dot.gov
Earns a margin on the spread between carrier cost and shipper rate
Provides access to thousands of carriers and real-time market rates
Manages carrier vetting, insurance verification, and documentation
3PLs often have preferred broker relationships worth leveraging

Common Questions

Should I use a freight broker or go direct to carriers?+

For sporadic or variable freight, a broker almost always wins — the spot market access, carrier diversity, and admin savings outweigh the broker margin. For high-volume, consistent lanes, direct carrier contracts become worth pursuing (typically above $500K/year in freight spend per lane).

How do freight brokers make money?+

Brokers earn the spread between what they charge the shipper and what they pay the carrier — typically 10-20% margin. This is disclosed in some states but not all. Double-brokering (re-brokering to another broker without the shipper's knowledge) is illegal and a red flag to watch for.

Related Terms

LTL (Less Than Truckload)FTL (Full Truckload)Freight ClassReceiving (Inbound)3PL (Third-Party Logistics)
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