What is a Freight Broker? | What Do Freight Brokers Do? | How Does a Freight Broker Make Money?

A freight broker is a middle person between shippers and truck carriers. Freight brokers help shippers move their freight by working with a network of carriers. They don't take possession of the freight as a carrier would, but instead facilitates communication between the shipper and the carrier, and handle any exceptions that arise during transit.

What is a freight broker? What do they do? Learn more in this video!

Some important definitions:
👩‍💼 Freight Broker: A freight broker is licensed by the Federal Motor Carrier Safety Administration (FMCSA) and helps connects shippers with motor carriers to move their goods. They are licensed and have to obtain a Surety Bond.

🏭 Shipper: A shipper is an individual or business that has products or goods to transport.

🚚 Motor Carrier: A motor carrier is a company that is also registered with the FMCSA and DOT that provides truck transportation services to haul property. There are two types of motor carriers: "Private" (A company that provides truck transportation of its own freight such as a Retailer's own fleet) and "For Hire" (A company that is paid to provide truck transportation services of freight belonging to others).

🗺️ Freight Forwarder. Some times confused with freight brokers but are very different. They are typically involved in cross-border or multi-modal transit where they typically take possession of the goods, consolidate numerous smaller shipments into one large shipment, then arrange for transport of that larger shipment using various shipping methods, including land, air and water carriers. Think of cargo being imported from China, which can go from an: Origin Warehouse in China --► Truck in China --► Port in China --► Port in the U.S --► Truck in the U.S --► Final Destination Warehouse in the U.S.


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