Freight Broker
Definition

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What is a Freight Broker?

A freight broker links shippers looking for carrier services with an authorized and licensed motor carrier-capable and willing to offer the services.

Freight Brokers-What Do They Really Do?

A freight broker plays the vital role of a transportation intermediary. Typically, it is an independent company, mostly not a fleet-owning carrier or a shipper), that facilitates safe and convenient cargo movement. A freight broker benefits from helping both the shipper and seller connect and succeed in their operations.

For instance, they link shippers with incredible carriers, which most likely did not know about. In some cases, a shipper may hand over the entire shipping process to a freight broker, who in turn facilitates safe and timely delivery of the freight to their designated destination.

There are two types of freight brokers you can choose from. Depending on your shipping needs and requirements, one option might prove to be better than the other.

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Types of Freight Brokers

Asset-based freight brokers - They are freight broker companies that have invested in their equipment to store and transport cargo. They could own such assets as warehouses, shipping trucks and trailers, and distribution hubs. Suffice to say, these freight brokers work with shippers directly to plan and organize the shipment process.

Non-asset-based freight brokers - They do not own any equipment of their own and mostly serve as an intermediary between shippers and carriers who transports the cargo to its correct destination. Contrary to popular belief, freight brokers can directly access any shipping equipment and other services such as trucks and trailers required for transport cargo. This is because they work closely with carriers such as Heavy Equipment Transport to transport freight to different destinations.

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