Freight Brokerage

Freight brokerage is the business of connecting shippers with carriers, usually by arranging loads for a fee or commission.

Examples: A broker matches a shipper needing a truck from Dallas to Chicago with a carrier that has capacity.

Advantages: Provides flexibility, market access, and quick solutions for shippers.

Challenges: Brokers don’t own equipment, so service quality depends on their carrier network.

Real-world example: C.H. Robinson and TQL are two of the largest freight brokerages in the U.S.

Explain like I’m five: A broker is like a matchmaker who helps trucks and shipments find each other.

FAQ: How do brokers make money? By charging the shipper more than they pay the carrier, keeping the margin.

Bottom line: Freight brokerage helps balance supply and demand in trucking but adds a middleman layer to the process.