Freight glossary / Roles and parties

What is Freight broker in freight?

A freight broker arranges transportation between a shipper that has freight and a carrier that has trucks, without owning the equipment. The broker is the contracting party to both sides, takes on the credit risk of paying the carrier before the shipper pays, and earns the difference between the two rates. Brokers must hold their own federal authority and a surety bond.

Also called: broker, 3pl broker.

Related terms

• Carrier
• Shipper
• Broker bond
• Margin
• Operating authority
• 3PL