What Are Freight Brokers?
On to Lesson #4. Shippers and carriers don’t find each other by chance. The indispensable intermediary in their arrangement is the broker, who posts the load and facilitates both contact and contract. Brokers come in all sizes and shapes. Big carriers often have their own brokerage departments. Big shippers—those that don’t have their own fleets—do the same. Definition: a freight broker acts as intermediary between shipper and carrier. For this service, the broker is paid a percentage of the shipping fee. A freight broker plays an important role in the movement of cargo, as he or she works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at an acceptable price. Setting aside industry elephants, most carriers and shippers use independent brokers. These vary from large brokerage firms that handle thousands of loads a day to small operations run out of the office part of the bedroom. Large or small, these businesses often need fin
