Different Types Of Freight Brokers

Top Insights

Traditional Brokers: Intermediaries linking shippers with carriers, often specializing by freight type or region.
Asset-Based Brokers: Hybrid model owning trucks/warehouses, offering end-to-end control but a smaller carrier pool.
Digital Freight Brokers: Online platforms using AI and automation for instant booking and real-time tracking; less personalized service.
Agent Model Brokers: Networks of individual agents operating under a larger broker’s authority, sharing insurance, compliance, and software.
3PL Providers with Brokerage: Full-service logistics firms (warehousing, fulfillment, inventory) that also arrange transportation.

Becoming a freight broker is an exciting career move with plenty of options to specialize in the areas you’re passionate about. Yet, as there are several different types of brokers, it can be tricky to decide which one you’re most suited to. So, we created this guide to help you make the right decision.

We cover traditional brokers, asset-based brokers, agent model brokers, and all the other types you need to be aware of.

Traditional Freight Brokers

Traditional freight brokers are intermediaries who connect shippers with reliable carriers to move freight efficiently and cost-effectively. They build and maintain a network of relationships with trucking companies and other shippers to secure freight transportation.

A traditional freight brokerage usually specializes in a specific type of freight or region. This allows them to provide tailored solutions based on a shipper’s unique needs.

These brokers are known for their wide-ranging industry expertise and hands-on service offered to their clients.

Used by:

Shippers with recurring freight needs across familiar routes.
Businesses looking for experienced brokers with industry-specific knowledge.
Shippers who value consistent service and strong, long-term relationships.

Asset-Based Freight Brokers

Asset-based freight brokers operate with a hybrid model; they work as brokers but also own transportation assets like trucks and warehouses. As a result, they have a lot of control over the movement of freight and can offer end-to-end logistics support.

The main benefit of using an asset-based freight brokerage is that they offer more reliability and faster responses in tight shipping windows.

On the other hand, their in-house assets can limit their flexibility as they draw on a smaller carrier pool than traditional brokers.

Used by:

Shippers with highly time-sensitive loads requiring reliable equipment availability.
Companies looking for a single point of contact for both brokering and trucking services.

Digital Freight Brokers

A digital freight brokerage is an online platform or app that allows shippers and carriers to connect with each other.

These platforms streamline the freight matching process through the use of AI, automation, and real-time tracking. Plus, using a digital freight brokerage means there’s no need for manual communication or paperwork.

Businesses often use these platforms because they offer instant booking, fast quotes, and detailed shipment visibility.

Yet, other businesses find the lack of personalized service a big drawback, particularly when dealing with complex or irregular shipments.

Used by:

Shippers requiring 24/7 visibility into load status and real-time updates.
Tech-forward businesses looking to reduce manual communication and human error.

Agent Model Freight Brokers

An agent model freight brokerage refers to a network of individual agents operating under a large brokerage’s authority. Each agent handles their own client relationships but uses the parent brokerage’s infrastructure, such as:

Insurance
Compliance
Software

For agents, this model offers the benefits of scale and legitimacy without each agent needing to maintain their own license and overhead. Shippers get the benefits of working with a large firm, enjoying the service-oriented approach of an independent broker.

Used by:

Shippers that need access to a large carrier network without compromising service quality.
Businesses looking for cost-effective solutions and scalable logistics support.

3PL (Third-Party Logistics) Providers Offering Brokerage Services

A 3PL provider offers a full-service logistics package, including:

Warehousing
Inventory Management
Fulfillment
Transportation

As part of this package, 3PL providers offer brokering services to connect shippers with carriers. If a business has a high-volume or complex supply chain, working with a 3PL is a good way to simplify the logistics process.

However, using a 3PL isn’t always as cost-effective as using a company that specializes solely in freight brokerage.

Used by:

High-volume shippers seeking an end-to-end logistics solution.
Businesses wanting to outsource their entire supply chain.

What Training Do You Need To Become One Of These Types Of Freight Brokers?

You don’t need any formal education or training to become a freight broker or agent. Yet, training is still important for success in your new career. This is why you should enroll with the 90-Day Freight Broker Course.

The course includes 100 hours of training, containing modules like:

An introduction to Transportation Law
Setting up your own freight brokerage
How to handle accounting tasks
Vetting carriers and shippers

It costs just $890 and, if you’re not satisfied, we’ll give you a full 30-day refund. Plus, the course is fully accessible with all training materials available in audio, video, and text. Discover 90-Day Freight Broker now and embark on your exciting career as a freight broker!

Final Thoughts

The freight industry is clearly highly versatile, with plenty of opportunities to explore. If you prefer a hands-on, customer-centric approach, then traditional freight brokerage is your ideal choice. If you’d like to offer end-to-end logistics support, you may want to become an asset-based broker.

Whichever path you choose, training is the best way to set yourself up for success. So, sign up for the 90-Day Freight Broker Course today and begin your journey.

FAQs

1. Do all types of freight brokers need a license to operate?

Yes, all freight brokers must obtain operating authority from the Federal Motor Carrier Safety Administration (FMCSA). However, freight agents don’t need to be licensed by the FMCSA as they can operate under a broker’s authority.

2. Are there types of freight brokers that specialize in international freight?

Yes, there are many freight brokers who focus on international freight such as ocean freight, cross-border trucking, and air cargo.

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