Freight Brokerage Explained: How Freight Brokers Connect Shippers and Carriers

⚡ Key Takeaways

• Brokers bridge a fragmented market — With over 900,000 registered carriers, most operating fewer than 20 trucks, brokers play an essential role in matching shippers with available capacity. 𝕏
• Digital platforms automate but do not replace — Digital freight brokerages automate pricing and matching but still rely on human agents for exceptions, complex shipments, and relationship management. 𝕏
• Margins are thin and cash-flow-intensive — Typical gross margins of 12-20% combined with the need to pay carriers before collecting from shippers make working capital management critical. 𝕏