Knowledge

Freight broker

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Double-brokering or rebrokering is illegal in the United States of America and occurs when a broker charges a fee then contracts the load to a second broker who will reduce the freight charge also collecting a fee that can be up to 15%. For example, an $ 1,150 load going 400 miles would net a carrier
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Co-brokering is a legal practice used to ensure there is an available truck to transport freight. A 4PL may use a 3PL broker to match loads with trucks, with a shippers knowledge. The primary broker will take a lesser amount of the fee and the secondary broker will book the load for transport
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will likely not be dispatched to pick up the load. This might have serious ramifications in case of an accident or incident, especially if there are operating issues with the carrier. Confusion on payment might lead to a
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A load may be posted on a truck load board by shippers, brokers, or agents. This may occur with special orders, brokers and/or agents that do not have an established logistics base, or brokers and agents seeking a
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between a shipper and a freight service provider. Freight brokers can specialize in certain types of freight, such as equipment hauling on
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is needed (as opposed to in-house) for freight transportation. The brokering can be single mode or by
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for a truck not in a high-traffic lane. Many brokers specialize in certain freight such as
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lien (as opposed to "freight charges held hostage."), a load not delivered, and lawsuits.
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and be granted authority as verifiable via the FMCSA Licensing & Insurance database.
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and can use specialized brokers on a permanent basis or as needed to ensure timely
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A freight broker in the United States must be licensed by the
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Intermediary between a shipper and a freight service provider
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Federal Motor Carrier Safety Administration (FMCSA)
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Index

intermediary
lowboys
oversize
bulk tanker
auto
freight transportation
Federal Motor Carrier Safety Administration (FMCSA)
cargo
land
United States
truck
logistics
shipbroking
cargo broker
freight forwarder
third party logistics broker
outsourcing
multimodal transportation
traffic management
backhaul
full truckload
less than truckload
auto
yacht
bulk
tanker
liquid
dry goods
oversize
lowboys

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