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Freight Brokerage: Definition and Examples

What is freight brokerage?

Freight brokerage is the organized brokerage of transport orders between shippers and carriers. The goal is to optimally match available loads and available transport capacities.

How does freight brokerage work?

Freight brokerage plays a key role in freight transport. It ensures that goods reach their destination reliably and economically. Freight brokers act as an interface between freight forwarders, transport companies, and clients. Brokerage is usually carried out via freight exchanges, specialized software, or directly through networks of experienced dispatchers.

A freight broker first receives a company's transport request. They then search for a suitable carrier with available capacity, paying attention to factors such as delivery time, route, cargo space, and price. The broker coordinates the process and sometimes also handles communication with all parties involved. This creates an efficient and cost-effective transport chain.

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