Freight brokers are described quite simply as people who bridge the gap between a shipper (those that will need to transport goods) and a licensed and reliable logistics provider, in this case, truckers.
Categorically, freight brokers are called transportation intermediaries. In other words, they are the middle men who ensure a shipper gets reliable movers to do the job and help the carriers to get in touch with customers and earn money.
These brokers do not necessarily own the carriers that they supply to their shipper clients. They also source them out to logistics companies. However, some carriers are encroaching on the freight brokerage business to maximize opportunities. Still, most companies prefer to employ the services of freight brokers who have a vast network of carriers and can provide them at the best price.
The freight brokerage industry began in the early 1970s, when as businesses expanded worldwide, logistics became a vital part of that growth. Strict guidelines and requirements imposed by the government at the beginning discouraged many from becoming brokers. Today, control has loosened a bit, and the business is thriving.
Freight brokers often play an important role in one of the shipper’s important aspect of the business: the timely and uninterrupted delivery of goods. Some companies ask their brokers to schedule the shipments for them since they are at the best vantage point to set all the requirements.
The success of a freight-brokerage business largely depends on the depth of shippers’ and carriers’ networks it has. Most brokers started working as carriers or shippers. There, they learned the ropes of shipping goods and established strong contacts. The freight brokers rely on their ability to ensure the delivery of products in their perfect condition at the time specified by the clients. To become a preferred broker, they have to gain the confidence of their clients.
