If you are a company that seeks to send freight to other parts of the country or around the world, finding a reliable carrier can be a problem. That is where freight brokers come in. With knowledge of the industry and contacts the broker can find affordable and reliable carrier services for any type of freight.
Freight brokers are the go-between between a company wishing to ship freight and the carrier service that will actually handle the shipping.
There are freight brokers who can find services that carry multiple types of shipments, or those that specialize in only LTL (Less-than-Truckload) or small shipments, refrigerated shipping, full truckload shipping, van shipping, or even dry bulk shipping.
Freight brokers are a valuable part of the shipping and carrying industry, helping companies wishing to ship freight find reliable carriers, and helping carriers make money by sending them clients.
Freight brokers must become licensed by the Federal Motor Carrier Safety Administration before operating a brokering business. The broker must also carry insurance in order to protect clients and customers, and in some areas are required to also carry surety bonds, which are a contract between the party fulfilling an obligation and the recipient of that obligation as well as the party that ensures that obligation is fulfilled.
Though freight brokers deal with both companies that wish to ship freight and those that will carry it, the brokers do not handle the shipping or carrying.