Tuesday, November 29, 2022

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what is freight brokers

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What exactly does a freight broker do?
A freight broker is a licensed property broker that uses its network of carriers to transport shippers' freight – and much more. This “much more” includes helping shippers to cut costs, move freight fast, and remove the demands of traffic management and carrier sourcing from its operations.
How do freight brokers make money?
Freight brokers make their money in the margin between the amount they charge each shipper (their customer) and what they pay the carrier (the truck driver) for every shipment. Although it varies from one transaction to the next, healthy freight brokers typically claim a net margin of 3-8 percent on each load.
What is the difference between a freight broker and an agent?
The difference between a freight broker and freight agent is that a freight agent is an individual who works with and for a freight broker as an independent contractor. They are considered to be a sales agent for a freight broker business and a point of contact for the freight broker business.