A freight broker is an individual or company that is contracted by a shipper to be a liaison between the shipper and a motor carrier to facilitate the movement of their property from origin to destination by accessing its vast network of carrier relationships.
Freight brokers make their money on the buy-sell spread it negotiates between the shipper’s billing rate and carrier’s invoice rate.
The Federal Motor Carrier Safety Administration (FMCSA) is the governing body a freight broker is required to obtain its license to operate legally.
There are over 17,000 freight brokers operating in the US.
The Transportation Intermediaries Association (TIA) is the industry association that provides leadership and direction to the logistics service provider industry.
Reasons Shippers Use Freight Brokers Include:
For more on freight brokers and how to leverage them for a competitive advantage: