What is a freight broker?
A freight broker is an intermediary between customers, freight forwarders and shipping companies. Freight brokers connect the three different entities inherent in the shipping process.
To understand what a freight broker is, it is also necessary to understand what a freight forwarder and a shipping company are.
What is a shipping company?
A shipping company has the equipment necessary to ship products and goods — semi-tractors, ships, airplanes, trains, etc. They are responsible for the actual shipping of customer orders.
What is a freight forwarder?
A freight forwarder is responsible for combining and arranging the cargo within shipping containers, train boxcars, airplane cargo holds, and inside semi-trailers.
So, what does a freight broker do?
One of the most important aspects of being a freight broker is carrying surety bond insurance or a trust fund. Freight brokers carry insurance in order to cover the potential for two issues. First, freight brokers are responsible for products and goods prior to them reaching the shipper.
Additionally, a freight broker is responsible for making certain that a shipment arrives. If a freight forwarder reserves space for products or goods, but they never arrive, the freight broker’s insurance covers the cost of the empty space. Source:https://www.quora.com/What-is-a-Freight-Broker