A freight forwarder takes physical possession of goods that need to be shipped, consolidates several small shipments into a larger shipment, and then coordinates that shipment’s transportation. A freight broker does not actually handle shipments. It’s important to understand the differences between freight brokers and freight forwarders. Freight brokers do not ship cargo themselves or have cargo to ship, but they negotiate transactions between shippers and carriers. We’ve put together this step-by-step guide to help new brokers get started.Ī freight broker acts as a transportation intermediary in the freight industry. Freight brokers are regulated by the Federal Motor Carrier Safety Administration (FMCSA), and the requirements can be confusing. If you want to run a freight brokerage business, matching goods that need to be shipped with trucking companies that do the shipping, you will need a freight broker license, or a load broker license.
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