Freight broker
{{Short description|Intermediary between a shipper and a freight service provider}}
A freight broker is an intermediary between a shipper and a freight service provider. Freight brokers can specialize in certain types of freight, such as equipment hauling on lowboys, oversize, bulk tanker, auto, or other types of freight transportation.
A freight broker in the United States must be licensed by the Federal Motor Carrier Safety Administration (FMCSA) and be granted authority as verifiable via the FMCSA Licensing & Insurance database.{{Cite web |title=Licensing & Insurance Home Page |url=https://li-public.fmcsa.dot.gov/LIVIEW/pkg_menu.prc_menu |access-date=2023-07-24 |website=li-public.fmcsa.dot.gov}}
A freight broker, in freight transport (cargo), over land in the United States by truck{{cite web|url=https://truckerpath.com/blog/top-freight-broker-companies/|title=Top 50 Freight Broker Companies|date=27 September 2017|publisher=Truckers Path}} is often used as part of the logistics. This may be part of an overall shipbroking using a cargo broker, a freight forwarder, third party logistics broker (3PL), and even a fourth-party broker,{{cite web|url=http://www.spokesrider.com/2009/07/12/scrip-warrant-act-of-1855/|title=3PL vs 4PL: What are these PLs, Anyway? Layers of Logistics Explained|date=8 August 2013|publisher=Cerasis|access-date=22 March 2019|archive-date=22 March 2019|archive-url=https://web.archive.org/web/20190322025029/http://www.spokesrider.com/2009/07/12/scrip-warrant-act-of-1855/|url-status=dead}} when outsourcing is needed (as opposed to in-house) for freight transportation. The brokering can be single mode or by multimodal transportation and can use specialized brokers on a permanent basis or as needed to ensure timely traffic management.
A load may be posted on a truck load board{{cite web|url=https://www.comcapfactoring.com/blog/free-load-boards-for-truck-drivers/|title=43 Free Load Boards for Truckers|last=|first=|date=30 July 2014|publisher=Commercial Capital, LLC|accessdate=20 September 2018}} by shippers, brokers, or agents.{{cite web|url=http://www.jobsinlogistics.com/html/articles/20160104-freight-broker-vs-freight-agent.html|title=What is the difference between a freight broker and a freight agent|last=|first=|date=|publisher=JobsInLogistics.com|accessdate=20 September 2018}} This may occur with special orders, brokers and/or agents that do not have an established logistics base, or brokers and agents seeking a backhaul for a truck not in a high-traffic lane. Many brokers specialize in certain freight such as full truckload (FTL) or less than truckload, auto, boat or yacht, bulk tanker (liquid or dry goods), oversize, equipment hauling on lowboys, flatbed, drop deck, or any other mode of freight transportation with enough loads.{{cite web|url=https://www.truckingtruth.com/wiki/topic-33/types-of-trailers|title=Types Of Trailers In Trucking|last=Aquila|first=Brett|date=4 November 2017|publisher=TruckingTruth.com}}
Co-brokering
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 receiving a larger share of the same fee.{{cite web|url=https://www.carrier411.com/co-brokering-double-brokering.cfm|title=Co-Brokering vs. Double Brokering|last=Roch|first=Gilles|publisher=Carrier411}}
= Concerns =
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 $977.50, but the same load double-brokered might result in $875.00 to the carrier. This margin on the second booking would net the broker an additional 14.3%. The shipper may not be aware of this and {{cl-span|the contracted truck|date=July 2021}} 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 possessory lien (as opposed to "freight charges held hostage."), a load not delivered, and lawsuits.{{cite web|url=https://www.joc.com/trucking-logistics/private-trucking-fleets/more-double-brokering-ups-threat-us-truck-shippers_20180328.html|title=More double-brokering ups threat to US truck shippers| last=Ashe|first=Ari|date=2018-03-28|publisher=JOC.com}}