Freight Broker: A freight broker is a licensed intermediary that connects shippers who need freight moved with carriers who have trucks available. The broker earns the difference between what the shipper pays and what the carrier is paid.
Why it matters to owner operators
Brokers are your usual source of loads, so their reliability matters. Check authority, bond status and payment history before you haul, because you are paid by the broker, not the shipper.
Example
A shipper hires a broker to move a pallet load. The broker posts it, books a carrier at an agreed rate, and pays the carrier after delivery.
How freight brokers are regulated
In the US, a freight broker must hold broker operating authority from the FMCSA and file a $75,000 surety bond (BMC-84) or trust fund (BMC-85). You can look up a broker’s authority status and bond on the FMCSA website before you haul for them.
Checking a broker before you book
- Confirm active broker authority and a bond on file
- Check credit score and average days-to-pay on your load board or factoring company
- Watch for double-brokering warning signs: odd email domains, pickup details that change, or pressure to skip setup
- Get every agreement in a signed rate confirmation
A dispatcher checks brokers and negotiates rates for the carrier, while the broker works for the shipper. Learn how our truck dispatch services in the USA handle broker setup.
Related terms
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