A freight broker is a third-party intermediary that connects shippers with carriers. They negotiate rates, arrange transportation, and handle documentation, but do not own the transportation assets themselves.
A freight broker’s value lies in their market knowledge, carrier network, and flexibility, helping shippers move freight efficiently without managing carrier relationships directly.
What a Freight Broker Does
Freight brokers serve as the coordination layer between businesses that need to move goods and the carriers that physically transport them. Rather than operating trucks or rail equipment, brokers focus on planning, communication, and execution.
Freight broker responsibilities include:
Connecting Shippers and Carriers: Brokers match shipments with carriers that have the right equipment, availability, and routes.
Rate Negotiation: They secure competitive pricing for shippers while ensuring carriers are paid fairly.
Load Coordination: Brokers schedule pickups, manage delivery timelines, and ensure freight moves as planned.
Shipment Tracking: They monitor freight in transit and provide updates to shippers.
Problem Resolution: Brokers step in when delays, breakdowns, weather disruptions, or capacity issues arise.
Documentation and Compliance: They manage paperwork such as bills of lading (BOLs), rate confirmations, invoices, and ensure carriers meet FMCSA and insurance requirements.
How Freight Brokers Work
Shipment Request: A shipper contacts a broker with details about the load (origin, destination, freight type, weight, and timeline).
Carrier Sourcing: The broker searches their carrier network to find a qualified carrier with the right equipment and availability.
Rate and Booking: The broker negotiates pricing, confirms terms, and books the shipment.
Pickup and Transit Management: The broker coordinates pickup, tracks progress, and communicates status updates.
Delivery and Closeout: Once delivery is confirmed, the broker finalizes documentation and invoicing.
Revenue Model: Brokers earn revenue by adding a margin between what the shipper pays and what the carrier receives.
Key Roles of a Freight Broker
Liaison – Acts as the single point of contact between shipper and carrier
Matchmaker – Pairs loads with the right carrier and equipment
Negotiator – Balances cost efficiency and carrier capacity
Coordinator – Oversees scheduling, tracking, and delivery
Problem Solver – Manages exceptions, delays, and disruptions
Administrator – Handles documentation, billing, and regulatory requirements
A manufacturer needs to move a full truckload from Atlanta to Chicago on short notice. Instead of contacting multiple carriers, they work with a freight broker.
The broker finds a carrier with available capacity, negotiates the rate, schedules pickup, tracks the shipment, and resolves a weather-related delay, which ensures that the load arrives on time without the shipper managing the logistics themselves.
