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.
Why it matters to you
Brokers sit between the shipper and the truck, and their margin comes out of the same rate you are quoting on. Nothing wrong with that — they carry the credit risk and the relationships — but as an owner-operator you should know the lane's going rate before you call, and check a broker's payment record and days-to-pay. Slow payment sinks small carriers faster than low rates.
FAQ
What does Freight Broker mean?
A middleman who connects shippers with carriers for a commission.
Why does Freight Broker matter to a driver?
Brokers sit between the shipper and the truck, and their margin comes out of the same rate you are quoting on. Nothing wrong with that — they carry the credit risk and the relationships — but as an owner-operator you should know the lane's going rate before you call, and check a broker's payment record and days-to-pay. Slow payment sinks small carriers faster than low rates.
Ready to Start Your Trucking Career?
Browse open CDL positions and apply today.