Freight Broker
A freight broker is a licensed intermediary that connects shippers with carriers to move freight, earning a margin on the difference between what the shipper pays and what the carrier is paid. Brokers do not own trucks or freight; they arrange transportation. A typical broker margin ranges from 12 to 20 percent of the shipment cost, which the shipper pays indirectly through a higher rate.
Why it matters
Brokers provide access to a wide carrier network and can be valuable for spot capacity. But margins, service variability, and lack of asset ownership mean shippers have less visibility and control compared to working directly with an asset-based carrier. When a brokered load fails to deliver on time, the shipper has limited recourse because the broker does not control the truck or the driver.
When to use it
Use freight brokers when you need rapid access to capacity outside your carrier network, for one-time lanes, or when your volume does not justify a direct carrier relationship. Brokers are also useful during peak season when your primary carriers are at capacity and you need overflow coverage within hours.
How Warp thinks about it
Warp is an asset-based middle-mile network, not a broker. Warp operates its own cross-docks and vehicles, giving shippers direct accountability and consistent service rather than a brokered capacity arrangement. Every Warp move is tracked through the Warp driver app, giving shippers real time visibility that brokered loads rarely provide.
Frequently asked questions about freight broker
What is freight broker?
A freight broker is a licensed intermediary that connects shippers with carriers to move freight, earning a margin on the difference between what the shipper pays and what the carrier is paid. Brokers do not own trucks or freight; they arrange transportation. A typical broker margin ranges from 12 to 20 percent of the shipment cost, which the shipper pays indirectly through a higher rate.
Why does freight broker matter in freight?
Brokers provide access to a wide carrier network and can be valuable for spot capacity. But margins, service variability, and lack of asset ownership mean shippers have less visibility and control compared to working directly with an asset-based carrier. When a brokered load fails to deliver on time, the shipper has limited recourse because the broker does not control the truck or the driver.
When should you use freight broker?
Use freight brokers when you need rapid access to capacity outside your carrier network, for one-time lanes, or when your volume does not justify a direct carrier relationship. Brokers are also useful during peak season when your primary carriers are at capacity and you need overflow coverage within hours.
How does Warp handle freight broker?
Warp is an asset-based middle-mile network, not a broker. Warp operates its own cross-docks and vehicles, giving shippers direct accountability and consistent service rather than a brokered capacity arrangement. Every Warp move is tracked through the Warp driver app, giving shippers real time visibility that brokered loads rarely provide.