GlossaryEN1 min readUpdated: Jun 22, 2026
Freight Broker
A freight broker earns its margin by matching shippers with suitable carriers – without owning vehicles or taking physical custody of the goods.
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Source: https://www.investopedia.com/terms/f/freight-broker.asp
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Definition & Explanation
A freight broker earns its margin by matching shippers with suitable carriers – without owning vehicles or taking physical custody of the goods. Acting as an independent intermediary, the broker books capacity, coordinates pickup and delivery, and manages communication between both parties from origin to destination. Compensation typically comes from the spread between what the shipper pays and what the carrier receives. Unlike a freight forwarder or 3PL, a broker does not warehouse goods, issue its own bills of lading, or assume liability as a principal carrier. In many jurisdictions, freight brokers must hold a specific operating licence and provide a surety bond to protect both shippers and carriers. The model is especially prevalent in road freight, particularly in less-than-truckload markets.
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