The advantages of using freight brokers for truckload transport

Published Dec 13, 2022, 3:39:31 PM UTC
by Phil Lumbroso
Filed under: · General  ·

A freight broker is a licensed matchmaker that facilitates the movement of freight shipments between shippers and carriers. We’ll stick to road freight hauled by trucks for the purposes of this article.

Freight brokers in North America are licensed by the FMCSA (Federal Motor Carrier Safety Association). Part of their licensing process includes proving proof of insurance, and putting up a bond in order to get their authority.

Established brokers build up a network of shippers and carriers, which they use both to be able to find truck availability for shippers / manufacturers, and to help the trucking companies find freight loads for their trucks. In return, they typically handle billing for the loads, and markup the carriers fee in order to make their profit.

The benefits of using freight brokers include access to better rates, which are usually based on the trucks looking for backhauls. Freight brokers prefer dealing with reputable trucking companies, and their networks will include many options specialized to meet shipper’s needs. 

In addition, they are used to dealing with adverse situations like emergencies, accidents, insurance claims, etc.

Some of the larger non asset freight brokerage firms in the USA include CH Robinson, Coyote Logistics, and Total Quality Freight. Many carriers opt to also have freight brokerage divisions, including some of the biggest firms in the USA, such as J.B. Hunt, Schneider National, Worldwide Express, to name a few.