What Is a Freight Broker and What Do They Actually Do?
If your business ships products, you may have wondered what a freight broker actually does.
Simply put, a freight broker connects shippers that need to move freight with authorized motor carriers that have the trucks and capacity to transport it. The broker arranges the transportation but does not operate the truck. Shipper → Freight Broker → Motor Carrier → Delivery
What Does a Freight Broker Do?
A freight broker can help with several important parts of the shipping process:
- Finds Carrier Capacity - The broker searches for available trucks that match the shipment's location, equipment, weight, and schedule.
- Gets Freight Rates - The broker contacts carriers to obtain and compare transportation rates.
- Coordinates the Shipment - The broker helps coordinate pickup and delivery details, appointments, equipment requirements, and communication between the shipper and carrier.
- Helps Manage Problems - If a carrier is delayed, has a mechanical issue, or a pickup changes, the broker can communicate with the parties involved and help find a solution.
Are Freight Brokers Regulated?
Yes. Freight brokers operating in interstate commerce are regulated by the Federal Motor Carrier Safety Administration (FMCSA). Property brokers are required to maintain the applicable financial security, currently $75,000 through a qualifying surety bond or trust.
Why Do Businesses Use Freight Brokers?
Working with a freight broker can help shippers:
- Find available trucking capacity.
- Compare transportation rates.
- Coordinate pickups and deliveries.
- Reduce the time spent searching for carriers.
- Manage unexpected transportation issues.
For businesses that ship regularly or across multiple lanes, a freight broker can provide an additional layer of transportation support.
A freight broker is more than a company that simply finds a truck. A good broker helps connect shippers with carrier capacity, coordinate shipments, communicate throughout the process, and help resolve transportation issues.
Value Transports provides freight brokerage services to help businesses coordinate their trucking needs with available carrier capacity.