Every day, over 55 million tons of freight move into the U.S., fueling the economy and generating billions in revenue. If your business ships raw materials or finished goods, transportation costs likely represent a significant portion of your expenses. Partnering with a freight broker can streamline operations, reduce costs, and boost profitability.
In this guide, we’ll explain what a freight broker is, how it works, and how it can benefit your supply chain.
What is a freight broker?
A freight broker is a key player in the logistics industry, acting as a middleman between shippers and carriers. Shippers are typically businesses or individuals needing to move goods, while carriers include freight carriers, truckers, and other shipping providers. Freight brokers help ensure shipments are delivered on time and in good condition, but they don’t own or transport the freight.
To legally operate, brokers should register with the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) to secure the necessary brokerage authority.
Instead of handling the physical transport, freight brokers focus on managing logistics. They coordinate with carriers, communicate with shippers, and track shipments to ensure everything runs smoothly.
What does a freight broker do?
1. Negotiating
Before a shipment hits the road, a freight broker reviews a company’s transportation needs and secures a carrier at the best possible rate. Acting on your behalf, they negotiate pricing, ensuring fair terms without compromising service quality.
2. Ensuring regulatory compliance
Freight brokers handle the legal side of shipping, from insurance requirements to licensing and permits. Their expertise helps businesses comply with industry regulations to avoid costly fines or disruptions.
3. Monitoring freight transportation
Once the shipment is on the move, brokers have constant communication with carriers to ensure smooth operations and timely delivery.
4. Managing freight risks
No shipping process is perfect. When issues like damaged cargo, rerouting, or unexpected delays occur, a freight broker steps in to resolve them quickly, minimizing disruptions to the supply chain.
5. Handling documentation
Freight shipping involves extensive paperwork, from Bills of Lading (BOL) and Proof of Delivery (POD) to customs documentation. Brokers manage these administrative tasks, ensuring accuracy and compliance.
How to pick a reliable shipping broker?
To ensure you make the right choice, keep the following factors in mind:
The freight broker's size and network
Larger brokers offer a broad carrier network and flexibility, ideal for high volumes or tight deadlines. However, smaller freight brokers can provide more personalized service, giving you closer attention to detail. Choose based on your need for reach or custom care.
The customer service
A good shipping broker does more than just book shipments—they ensure timely pickups, track goods during transit, and resolve issues quickly. They should be responsive, transparent, and proactive in keeping you updated on the status of your shipment.
Access to capacity
A reliable broker should have access to various carriers, especially if you deal with fluctuating shipping volumes or have specific capacity needs. They should be able to secure the suited transportation for your goods, even during peak seasons.
The broker's reliability
Look for brokers with a strong track record of on-time deliveries and problem-solving. Check reviews or ask for references to confirm their reliability.
Freight forwarder vs broker: What’s the difference?
Many people mistakenly use the terms freight broker and freight forwarder interchangeably. While both connect shippers with carriers, their roles differ significantly. Some freight forwarders even refer to themselves as brokers, adding to the confusion.
The key difference? A freight broker facilitates the shipping process by connecting shippers with carriers but does not physically handle or transport the goods. Their primary focus is on domestic freight within the U.S. In contrast, a freight forwarder takes a more active role—managing shipments, consolidating cargo, and often overseeing international freight movement.
What exactly does a freight forwarder do?
A freight forwarder arranges transportation and provides additional services beyond booking a carrier. They may store goods, consolidate shipments, and handle customs clearance.
One major distinction is that freight forwarders ship under their own Bills of Lading, giving them more control over the freight. They also work directly with ocean and air carriers to secure cargo space and negotiate rates.
Which one do you need?
If your business ships goods domestically and needs a cost-effective way to connect with carriers, a freight broker may be the right fit. However, a freight forwarder provides more comprehensive solutions if you’re managing international logistics, need warehousing, or require cargo consolidation.
Save time and money with ASLG
At Airsupply, we specialize in making international shipping easier for importers and exporters. We streamline logistics solutions so you can focus on growing your business. Here’s how we help:
Dangerous goods shipping
With over 300 weekly shipments of dangerous goods (DG), we ensure your cargo complies with all import regulations and documentation requirements, minimizing risk and hassle.
Transparent quoting
We believe in clear, upfront pricing. When you work with us, there are no hidden fees. You’ll always know what you’re paying for, helping you budget more effectively and avoid unexpected costs.
FBA shipments
We cover all the essentials for Amazon shipping—from repackaging and labeling to bundling and marking. We make sure your shipments meet Amazon’s strict requirements.
Dedicated support and guidance
Our team is here to guide you every step of the way. Whether you are choosing a freight forwarder or managing ongoing shipments, our customer service team is always available to provide expert support and advice.
