Freight Broker
A middleman who connects shippers with carriers for a commission.
Definition
A freight broker is a licensed intermediary who arranges the transportation of goods between shippers and carriers without owning trucks or handling freight directly. Brokers must have FMCSA broker authority (MC number) and a $75,000 surety bond. They earn revenue from the spread between what shippers pay and what carriers receive. Brokers handle approximately 20% of all U.S. freight.
FAQ
What does Freight Broker mean?
A middleman who connects shippers with carriers for a commission.
Why is Freight Broker important for truck drivers?
Understanding freight broker is essential for truck drivers because it directly impacts your daily operations, pay, or compliance. A freight broker is a licensed intermediary who arranges the transportation of goods between shippers and carriers without owning trucks or handling freight directly. Brokers must have FMCSA broker authority (MC number) and a $75,000 surety bond.