What is freight brokerage services?

July 19, 2022 - Reading time: 3 minutes

Freight brokerage is a challenging but rewarding business. If you're thinking about becoming a broker, make sure you do your research and get started on the right foot. Go freight hub can help you find the resources you need to get started in freight brokerage.

A freight broker is an intermediary between a shipper who has goods to move and a carrier who has the capacity to transport them. The broker's job is to find a carrier that can meet the shipper's needs in terms of price, routing and other requirements, and then book the shipment with that carrier. 

The term "freight broker" is used interchangeably with "transportation broker" or "logistics broker."

At its simplest, freight brokerage is about matching up shipments with carriers. But in reality, it's much more complex than that. Freight brokers are responsible for managing all aspects of the shipping process, from quoting and booking to tracking and invoicing. And they need to do all of this while meeting the needs of both shippers and carriers.

That's why freight brokerage is a complex and demanding business. But it's also a business with huge potential. For the right people, freight brokerage can be a very rewarding career.

If you're thinking about becoming a freight broker, there are a few things you should know. First, you'll need to get your broker's license from the Federal Motor Carrier Safety Administration (FMCSA). This process involves passing an exam and background check, and it can take several months to complete. 

Once you have your license, you'll need to find shippers and carriers to work with. You can do this by networking with other businesses in your industry, attending trade shows and events, or using an online freight marketplace like gofreighthub.io.

The largest freight brokerage firm

There is no definitive answer to this question, as there are many large freight brokerages out there. However, some of the largest firms in the industry include Coyote Logistics, C.H. Robinson and J.B. Hunt. These companies all have a large network of shippers and carriers that they work with, and they are all well-established players in the freight brokerage industry. Go freight hub can help you find the right freight brokerage firm for your business needs.

Freight broker earnings

A freight broker's earnings are based on the commissions they earn from shipments. The amount of commission varies depending on the type of shipment, the distance it is going and other factors. However, most brokers earn a commission of 10-15% of the total shipment cost. So, for example, if you book a shipment that costs $1,000, you would earn a commission of $100-$150. Go freight hub can help you find the right freight broker for your business needs.

Types of freight brokers

There are two main types of freight brokers: Third-party brokers and captive brokers

(a) Third-party brokers are independent businesses that work with both shippers and carriers to find the best shipping solution for each individual shipment. They are not affiliated with any one carrier, which gives them the flexibility to work with a variety of carriers to find the best option for each shipment. Go freight hub can help you find the right third-party freight broker for your business needs.

(b) Captive brokers, on the other hand, are affiliated with a single carrier. They only work with that carrier, and they don't have the same flexibility as a third-party brokers. However, they may be able to offer lower rates because of their relationship with the carrier. Go freight hub can help you find the right captive freight broker for your business needs.

by Elisa Laurt