Broker
A freight broker is a licensed middleman who connects shippers (companies with freight to move) with carriers (trucks to move it), taking a margin between what the shipper pays and what the carrier earns.
What you actually need to know
Brokers don't own trucks. They own relationships — with shippers on one side and carriers on the other. A broker takes a load from a shipper, posts it on load boards, negotiates with carriers, dispatches the truck, handles paperwork, and collects payment from the shipper. The broker pays the carrier (usually net-30 to net-45) and keeps the margin.
Margins vary by lane, freight type, and broker. A typical broker margin is 15–20%. Some lanes (specialty freight, urgent loads) carry margins of 25–35%; some thin-margin freight (long-haul dry van) carries 10–12%.
For new owner-operators, brokers are usually the primary source of loads. Direct shipper relationships take time to build.
To work with a broker, you submit a carrier packet — your MC authority, USDOT, W-9, insurance certificate, voided check, and a few signed agreements. Once you're set up, you can take their loads.
Common mistakes / confusions
- Brokers must be licensed by the FMCSA (with their own MC authority — broker authority, different from motor carrier authority).
- Some brokers are reliable and pay on time. Some are not. Check broker credit scores on services like CarrierEdge, Compunet, and Ansonia before hauling for an unknown broker.
- A broker is different from a "dispatcher." Dispatchers work for carriers; brokers work for shippers.
Related terms
Where to go next
TruckStart is an educational tool, not a law firm, accounting firm, insurance agency, freight broker, or filing service. Always verify current requirements directly with FMCSA, your state, the IRS, and qualified professionals before making business decisions.