What is a Freight Broker?

Freight brokers play an essential role in getting a product from the warehouse to the store shelf. Almost all products spend some amount of time on a truck, and because of this, freight brokerages can be a lucrative business.

Features
A freight broker is a person or company that links a shipper who needs to transport goods with a motor carrier that provides the service.

Identification
Freight brokers can be characterized as transportation intermediaries. They are not asset owning carriers and do not ship any goods themselves.

Significance
Freight brokers play an essential role in the world of commodities. They earn a rate of commission, and can open lasting accounts if they introduce shippers to transportation companies that provide a decent rate.

History
Freight brokers have been around since the early 20th century. The regulations that governed brokers before the 1970s were so restrictive that hardly anyone tried to enter the business. Since the 1970s, the regulations have been relaxed, and it is now much easier to enter the business.

Considerations
Most successful freight brokers worked in the industry as either a shipper or carrier before breaking into the brokerage business.