If you move freight regularly, you will eventually face the question of whether to use a broker for shipping or keep everything direct with carriers. The wrong choice can mean higher costs, missed deliveries and a lot of time on the phone. The right broker shipping partner can extend your routing guide, stabilize rates and give you honest visibility into who is hauling your freight.
What does a broker do in shipping?
Broker shipping in simple terms
In simple terms, a shipping broker connects companies that have freight with trucking carriers that have capacity. The broker does not own the trucks. They coordinate the move, from quoting and booking through pickup, transit and delivery. Brokers earn a margin between the rate you pay as the shipper and the rate they pay to the carrier.
For day to day operations, that means your team sends shipment details to the broker and receives a confirmed truck, a rate, and updates while the load is in motion. The broker’s value is the network, the lane knowledge and the ability to solve problems fast when something goes wrong.
Freight broker vs shipping broker vs freight forwarder
Many shippers use the terms interchangeably. In truckload and LTL, “freight broker” and “shipping broker” usually mean the same thing. Both are licensed intermediaries that arrange transportation and do not take possession of the cargo.
A freight forwarder often handles consolidation, international moves and may take possession of the freight in their own facilities. For domestic road freight in North America, when you say “broker shipping” you are typically dealing with a licensed freight broker, not a forwarder.
When you actually need a broker for shipping freight
You feel the need for a broker when:
- You have more lanes and ship points than your direct contracts can cover.
- You struggle to find trucks on short notice or during peaks.
- You run a mix of FTL, LTL, reefer, dry van and flatbed and cannot keep up with carrier sourcing.
- Your team is spending too much time on phone calls, tender rejections and status chasing.
In these cases, broker shipping can act as a flexible capacity layer that fills gaps in your routing guide while you keep direct relationships where they make sense.
How broker shipping works from quote to delivery
Shipper shares lane, mode and service needs
The process starts when your team sends a load or lane request. Details usually include origin, destination, weight, pallet count, commodity, mode and service needs such as FTL, LTL, reefer, dry van, flatbed or dedicated truck. For food or pharma, you add temperature and FSMA requirements. For projects, you specify securement and special equipment.
A good broker will also ask whether the lane is contract freight or spot freight, whether you have a target rate and how sensitive the lane is to service failures. That context shapes how they source capacity.
Broker sources carriers and checks safety, insurance and fit
The broker then looks across its carrier network to match your load with the right asset fleet. Behind the scenes, they review each carrier’s operating authority, safety rating, insurance certificates and equipment profile.
At One Freight Broker, the starting point is a vetted asset network. Carriers are onboarded with documented COI, active DOT and MC authority and minimum safety thresholds. That screening is not a one time event. It is monitored as ratings, inspections and insurance renewals change.
Rate building, accessorials and confirmation
Traditional brokers will quote you an all in rate and keep the carrier pay rate hidden. Their profit is the spread. If they can push the carrier rate down or the shipper rate up, margin grows.
One Freight Broker uses a low fixed margin model instead. You see the carrier name and what the carrier is paid on every load. The fixed margin is visible as a line item. Accessorials such as detention, truck ordered not used, extra stops and fuel surcharge are itemized, not buried. That structure removes the incentive to play the spread and makes it easier to compare true lane cost over time.
Tracking, updates and issue management in transit
Once the truck is booked and the rate is confirmed, the broker coordinates check calls or ELD based tracking. They manage pickup appointments, in transit status and delivery times. If weather, breakdowns or dock delays hit, the broker is the first escalation point and works with the carrier and your team to replan.
In a transparent model, status, appointment changes and accessorial triggers are documented and shared, so you can connect those events to on time delivery and cost performance per lane.
Broker shipping vs going direct to carriers
Capacity, market coverage and load matching
Going direct to carriers makes sense on high volume lanes where you can justify committed capacity, drop trailer programs or dedicated trucks. You will usually get better rates in these cases because the broker margin is removed.
Broker shipping becomes powerful when you have many origins, destinations and service types. A broker can aggregate demand and match your individual loads into a much larger carrier network than most shippers can build alone. This is especially useful for LTL, reefer peaks and irregular flatbed freight, where finding the right carrier quickly is time critical.
Cost, rate stability and how brokers make money
With a traditional broker, earnings come from the difference between what you pay and what the truck gets. That model can reward volatility. When spot rates fall, the broker can keep more spread. When rates spike, they may pressure carriers to hold down pay while still pushing your rate up.
With a low fixed margin brokerage such as One Freight Broker, earnings are a known percentage or fee over carrier cost. You see the carrier rate and the broker fee. That structure supports more stable pricing and lets procurement track cost per lane over time instead of guessing what margin was built into each move.
When direct carrier contracts make sense
You should still use direct carrier contracts when:
- Volume is high and predictable on a lane.
- You can support drop trailer or dedicated capacity.
- The lane is strategically critical and you want a direct relationship with the asset provider.
In practice, many shippers blend direct contracts with transparent broker shipping so they get both stability and flexibility.
A transparent approach to broker shipping with One Freight Broker
Low fixed margin instead of playing the spread
One Freight Broker operates on low fixed margin pricing so you can see exactly how much of each dollar goes to the carrier and how much is brokerage fee. The margin is stable across good markets and bad, which reduces surprises in your P and L and makes budgeting easier.
Short snippet:
“Low fixed margin removes the incentive to play the spread between what you pay and what the truck gets.”
Full carrier name and rate disclosure on every load
On every brokered shipment you see:
- Carrier legal name and DOT / MC number.
- Carrier pay rate.
- Broker fee or margin.
Snippet:
“We disclose carrier names and pay so shippers see the full picture, not just a sell rate on a load.”
This transparency lets you build lane scorecards that combine cost, OTP, claims and dwell by carrier, not just by broker.
Vetted asset fleets, safety checks and compliance
Carriers are onboarded through a structured process. Authority, COI, cargo limits, safety rating and ELD compliance are all verified. Food and temperature sensitive freight is assigned only to carriers that meet FSMA and equipment standards.
For you, that means broker shipping is not just “who is cheapest today.” It is a controlled extension of your safety and compliance program.
No back solicitation trap, carrier relationships built with you
One Freight Broker works to align incentives across shipper, broker and carrier. That includes clear agreements on back solicitation that protect the work of sourcing carriers while still letting you develop strategic relationships over time. The intent is partnership, not lock in.
Snippet:
“Test carriers on your lanes with a broker before you lock in long term contracts.”
How to evaluate a freight broker for your lanes
Safety rating, COI, ELD and compliance questions to ask
When you interview brokers, go beyond rates. Ask:
- How do you check and monitor carrier authority and safety rating.
- How often you refresh COI and what minimum limits you require.
- How you handle ELD and tracking expectations with carriers.
- What your process is when a carrier falls below safety thresholds.
If a broker cannot show a documented screening process, that is a red flag.
Lane scorecards, OTP and claims metrics that matter
A serious broker should be ready to share:
- OTP and OTD performance per lane and per carrier.
- Claims ratios and types of issues seen.
- Average detention per lane and per facility.
- Tender acceptance rates and fall off percentages.
These metrics should tie directly into your route guide reviews and quarterly business reviews.
FTL, LTL, reefer and flatbed coverage on your core lanes
Make sure the broker has real strength in your modes and regions. For example:
- FTL and LTL coverage in your main shipping regions.
- Reefer experience in your peak seasons and temperatures.
- Flatbed and step deck capability for your project or building materials freight.
- Dedicated or semi dedicated options on high volume lanes.
Ask for real lane examples and carrier lists, not just a generic “we can cover everything.”
Transparency on accessorials, detention and fuel
Linehaul is only part of the bill. To manage total landed cost, you need clarity on:
- How detention starts and what rates apply.
- How truck ordered not used is handled.
- How fuel surcharge is calculated.
- How accessorials are communicated before they appear on invoices.
One Freight Broker itemizes these on each load and provides summary reporting so procurement sees the full cost picture, not just linehaul.
Make sure broker and carrier agreements spell out clear, reasonable back solicitation terms. Choose a broker that is willing to disclose carrier names and work with you on long term relationship planning instead of blocking contact at all costs.
To request a transparent quote or learn more, visit 1fr8.broker.
