What is Freight Brokerage

Posted by Port City Logistics on Jul 14, 2020 8:00:00 AM

A freight broker is a company or individual that assists shippers by finding qualified carriers to ship their load. Freight brokers control a significant amount of carrier services. Freight brokerage will let you pay attention to other components of your business, which will provide you with a competitive edge to maximize production. In this article, we'll answer what is freight brokerage and help you understand why you need it for your business. 

How Can Freight Broker Services Help You?

Many shippers undervalue the importance of freight brokerage, but what they do not know is it can save them money and time. Most shippers lack the time or experience to determine if a carrier is reliable and qualified. Instead of taking a guess at who could be the best fit, freight brokers help shippers find qualified carriers that are reliable in transporting their load.

Freight brokers are accountable for brokering agreements with shippers and then facilitating the transportation of the shipper's freight. They also keep the line of communication open with the carrier to keep the shippers updated on their freight status. They also have extensive expertise and knowledge in the industry to get you carrier services at lower rates.

What Does a Freight Broker Do?

To fully grasp the importance of freight brokerage, it is important to understand how they operate. Freight brokers must tend to every detail when setting up a shipment to ensure it has the highest safety and efficiency available.

Order Tender

Order tendering is the first stage in the shipping process. Here, the freight broker will ask you for all the necessary information about your freight, including freight type, weight, and dimensions. The broker will also ask you to provide the contact information and addresses of recipients.

3-23 PCL

When the broker has all this information, the next step is contacting a carrier or a freight company to schedule the freight. This process is called freight tendering. You will also be required to provide other important information such as handling conditions of the load and type of commodity.

Load Scheduling

After tendering your cargo, the brokers will put it in a transportation management system. This is a special application for booking and managing cargo. This allows freight brokers to work more effectively. Through this software, brokers can identify qualified and reputable carriers to ensure you get the best carrier service.

When the cargo booking has been confirmed, the freight broker will arrange pickup and delivery times.


Cargo loading is one of the main stages of the shipping process, and freight brokers play an important part in it. Freight brokers link with the drivers to make sure they deliver the load on time and manage the safe freight loading procedure. When the cargo is safely loaded, the carrier will sign a landing bill, thus becoming responsible for the cargo.


While your cargo is in transit, the freight broker will track and manage it through the transportation management system. Through this system, shippers will receive regular updates and have total transparency on the shipping process. This means when you hire a freight broker, you will be up to date with your cargo's status and be sure everything goes smoothly.


The consignee will sign the bill of landing during the unloading process. After the carrier ensures safe unloading and finishes the paperwork, the broker will receive the paperwork and invoice the shipper.


This is the last stage of the cargo transportation process. Billing is when the broker sends an invoice to the shipper, and the shipper settles the bill.

Advantages of Using a Logistics Freight Broker

• Better management of the shipment process.

• Access to a greater network of carriers and trucks.

• Additional cargo insurance.

• Provide flexibility with shipping modes and capacity.

• Handle issues if they arise.

Shipping sometimes involves complicated lanes. Therefore, hiring a freight broker will help your company have smooth cargo flow and on-time deliveries hence meeting your shipment needs.

Contact Port City Logistics

Freight brokerage is a vital asset for any business that needs to ship goods or materials. As one of Savannah's top logistics companies, Port City Logistics leads the way for those who need top-tier freight brokerage. Our experienced team will keep your goods safe, secure, and ready for transport. If you think you may need to learn more about what is freight brokerage, we'll get you started on the correct path. 



Topics: Single Source Logistics, Third Party Logistics (3PL), Truck Freight