LearnFreight

A freight broker is an intermediary between someone who needs something shipped and the person who can transport the shipment. So in essence, a freight broker is the middleman between the shipper and a transportation company. Freight Brokers use their negotiation skills, access to carrier networks, load boards, and knowledge of the trucking industry to provide clients with maximum efficiency when shipping their cargo.

As we discuss in our freight broker training course, a freight broker connects someone who needs something shipped with a suitable transportation company to transport their cargo. For that, they earn also earn a commission. 

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It's not uncommon for the terms 'Freight Brokers' and 'Freight Forwarders' to be used interchangeably, but they do, in fact, denote different roles within the freight industry. While both work with shippers and trucking companies, their responsibilities and operational scopes differ. As we already discussed, Licensed Freight Brokers essentially act as intermediaries, connecting shippers with carriers, negotiating freight rates, and arranging the movement of goods. They don't physically handle the freight but ensure that the transaction between the shipper and the carrier is efficient (managing shipping costs, ensuring delivery times are met and the entire shipping process is executed as planned). On the other hand, Freight Forwarders take a more hands-on approach. They not only coordinate the shipping process but also manage the storage and shipping of the goods, handle documentation, and provide a range of other services related to international exports and imports. 

To operate as a freight broker, you will have to obtain a freight broker license. To do so, you will have to go through an FMCSA (Federal Motor Carrier Safety Administration) application process and get a surety bond. Then, once your authority is approved, your MC number will get activated and you can begin operating as a freight broker.