If you are in the transportation industry and thinking about hiring a freight broker to manage your shipping logistics, one of the first questions you probably have in mind is: how much does working with a freight broker cost?
Whether you’re a small business owner trying to optimize your supply chain or an aspiring broker looking to understand industry norms, One Freight Broker will walk you through the ins and outs of freight broker pricing. Let’s take a closer look.
What is a Freight Broker?
Before we dive into the numbers, we should first develop an understanding of what freight brokers actually do. This will help understand the value of their services.
Also known as logistics brokers, freight brokers play a crucial role in the transportation industry by connecting shippers with carriers. Shippers are the businesses and individuals who have goods they need to move, while carriers are the trucking companies and transportation service providers with the capacity to move them.
Unlike freight carriers, brokers don’t own any trucks or fleets. Instead, they use their network of trusted carriers and deep knowledge of logistics to coordinate shipments and ensure everything runs as smoothly as possible. With their help, freight can go from point A to point B in good condition and on schedule.
Brokers don’t just work with shippers—they also serve carriers by keeping their trucks loaded and on the move. They help reduce downtime by offering steady access to freight, which can be especially helpful when a carrier is trying to avoid “deadhead” trips—where a truck returns empty. They even assist in finding backhaul opportunities and negotiating better payment terms to improve cash flow for carriers.
Brokers cover all the logistical aspects of freight shipping. They are essentially problem-solvers who negotiate rates, manage paperwork, and come up with solutions to unexpected issues.
Overall, freight brokers are more than just matchmakers in this industry. They act as a bridge that supports both sides of the shipping process, ensuring that logistics run as efficiently and profitably as possible for everyone involved.
How Freight Brokers Make Money
Primarily, freight brokers make money by charging a margin between what they pay carriers to haul freight and what they charge shippers for arranging transportation. This margin is often referred to as a “spread”.
This spread is the broker’s profit and can vary depending on factors that we will discuss later on. For example, if a broker secures a load from a shipper for $2,000 and finds a carrier willing to move it for $1,600, the broker earns a $400 profit.
These transactions are typically managed quickly and in high volume, allowing successful brokers to generate steady income from multiple shipments each day.
In addition to these per-load margins, some brokers establish long-term contracts with regular shippers, providing a consistent stream of business and allowing brokers to negotiate better rates with carriers. Just like carriers, they benefit from this consistent flow of business as it increases their profitability.
It’s worth noting that some brokers offer value-added services like cargo insurance, warehousing coordination, and route optimization, which can be billed separately or factored into their overall pricing.
Freight Broker Cost for Shippers
For shippers, the cost of working with a broker depends on the type of service provided, the complexity of the shipment, and current market rates. Many shippers see this added cost as something that is offset by the benefits.
While working with a freight broker might seem more expensive upfront compared to going directly to a carrier, the value-added services often justify the expense. Brokers can provide access to a wide network of vetted carriers, ensure regulatory compliance, secure competitive rates, provide real-time tracking, and resolve issues that may arise during transit.
For shippers dealing with complex routes, high volumes, or time-sensitive deliveries, these services can help avoid costly delays and inefficiencies. The expense of working with a broker is worth it considering they can handle logistics tasks that would otherwise require internal resources.
Factors That Influence Freight Broker Costs
Several variables influence how much you’ll pay when working with a freight broker. Understanding these can help you negotiate smarter and avoid being overcharged.
Shipment Type and Complexity
One of the biggest factors that can influence pricing is the type of freight you are shipping. For example, standard dry goods in a dry van are generally cheaper than shipping perishable, oversized, or hazardous materials. This is because these loads often require specialized equipment or permits, which adds to the cost and complexity.
Distance and Route
Longer hauls naturally cost more—but it’s not always linear. Some routes are more expensive due to tolls, traffic congestion, or limited backhaul opportunities. Shipping into or out of rural or less accessible areas can also increase broker costs.
Freight Volume and Weight
Heavier or bulkier shipments will cost more because they consume more resources—fuel, truck space, and handling labor. Volume-based pricing is often more favorable than LTL (less-than-truckload) pricing, so brokers may help consolidate shipments to reduce cost.
Technology and Services Provided
Some freight brokers operate like full-fledged logistics consultants. They offer services like load tracking, route optimization, and freight auditing. Brokers that invest in premium logistics tech may charge more, but you can generally expect them to deliver more value.
Flat Fees vs. Percentage-Based Fees
Not all brokers work solely on a percentage markup model. Some might charge a flat fee for managing freight or offer subscription-based logistics services. Flat fees and percentage-based fees represent two distinct pricing models, each with its own benefits depending on the shipper’s needs.
A flat fee model offers predictability and transparency. With this model, shippers know upfront what they will pay for each load or for ongoing logistics services, regardless of the final shipping cost. This can be especially attractive for businesses with regular freight needs or fixed budgets, as it helps streamline planning and financial forecasting.
Meanwhile, percentage-based fees tie the broker’s earnings to the cost of the load, typically taking a set percentage of the total freight cost. This model aligns the broker’s earnings with the scale of the shipment and can be more flexible, especially for irregular or high-value loads. That said, this can sometimes create concerns for shippers who worry about inflated costs.
Some modern freight brokers are even starting to blend these models, offering hybrid or subscription-based logistics services that provide long-term support for a flat monthly rate. This is especially appealing to businesses that are looking for consistency and scalability in their shipping operations.
Work with One Freight Broker
Whether you’re shipping one pallet a week or looking to start your freight broker business, understanding freight broker costs will help you make smarter, more informed decisions.
If you are looking for a freight broker business that offers reliable freight transportation services, One Freight Broker is the go-to choice for shippers everywhere—and it’s easy to see why.
One Freight Broker is known for its unique and inclusive approach that allows shippers of all sizes to build direct, beneficial, and enduring connections with carriers. By helping them connect with reliable transportation partners and reducing their dependence on intermediaries, One Freight Broker reduces their shipping costs.
Since One Freight Broker’s founding in 2013, they have significantly reduced shipping costs for clients, amounting to tens of millions in savings, thanks to this unique strategy. One Freight Broker can also offer a wide range of services catering to diverse shipping needs, whether it’s LTL, FTL, domestic, international, or expedited shipping.
When you partner with One Freight Broker, you gain access to a vast network of carriers, competitive rates, and a team of experts dedicated to optimizing your shipping process. Whether you’re shipping domestically or require assistance with more complex logistics, we’re here to ensure your freight reaches its destination efficiently and cost-effectively.
Contact Us Today
Ready to simplify your shipping experience? Contact One Freight Broker to discover how our expertise can benefit your business, ensuring your cargo is in safe hands every step of the way.
For more information on how we can assist your business, visit our website at 1fr8.broker.
