Freight brokers act as intermediaries between shippers (those with goods to transport) and carriers (such as trucking companies, railroads, and, pertinently, ocean freight companies operating cargo vessels). They negotiate rates, arrange transportation logistics, and manage documentation. Their compensation typically comes from the difference between the rate they secure from the shipper and the rate they pay to the carrier. This margin, often a percentage of the overall shipping cost, can vary based on factors like the cargo’s size, weight, destination, market conditions, and the broker’s negotiation skills.
Effective brokerage plays a vital role in global trade. By connecting cargo owners with available vessel space, brokers contribute to the efficient movement of goods internationally. This facilitation optimizes supply chains, reduces transportation costs, and ensures goods reach consumers timely. Historically, the reliance on maritime transport for bulk goods and international trade has underscored the importance of skilled intermediaries coordinating these complex logistical operations.
