What Is Freight Brokerage and Why Do Businesses Need It?

Navigating Today’s Supply Chain Challenges

If you're managing logistics in 2025, you're likely grappling with a volatile freight market. Tightening capacity, fluctuating international trade relations, and rates that seem to go up one week and down the next. We don’t blame you if you’re having a bit of trouble keeping things straight.

When you need to get your products on shelves, you have a few options. An asset-based carrier who owns their own trucks and negotiates with you the rates they will charge to move your freight from point-A to point-B. Or, you can opt for a broker who build relationships with dozens, sometimes even hundreds of carriers to negotiate with them the rates and pass those on to you. But, how do you decide which route to take?

Choosing to partner with a freight broker may depend on a number of factors and what works now might not work for you next week. Our team is laying out everything you need to know about what a freight broker is, when to use one, and when another option might make more sense for you. 

What Is a Freight Broker?

A freight broker acts as an intermediary between shippers and carriers, facilitating the movement of goods without owning transportation assets.

Think of a freight broker like a travel agent for freight.

Just like a travel agent doesn’t own any airplanes or hotels, a freight broker doesn’t own trucks or trailers. Instead, they tap into a wide network of providers to find the best route, rate, and timing to get your shipment where it needs to go. If your usual carrier is overbooked or charging too much, a freight broker steps in, checks all the options, and books a smarter alternative

This is considered an “asset-light” model, as opposed to “asset-based” model when a company owns equipment outright. 

The U.S. freight brokerage market is projected to grow from $19.46 billion in 2025 to $29.06 billion by 2030, reflecting an 8.35% CAGR . Despite this growth, the number of active freight brokerages in the U.S. has declined to 26,653 as of Q3 2024, an 11.6% decrease from 2023 

Benefits of Using a Freight Broker

So why would you need to use a freight broker? What can they do that you can’t do simply by picking up the phone? 

The short answer: a lot. While it might seem easier to contact a known carrier directly, the value a freight broker brings goes far beyond scheduling. They help businesses scale, adapt, and stay competitive in a volatile logistics environment.

Access to a Broad Carrier Network:

Freight brokers aren’t tied to a single asset pool. Instead, they maintain relationships with hundreds or even thousands of carriers, ranging from national fleets to regional independents. 

This gives you access to capacity on demand, even during seasonal surges or when your regular carriers are overbooked. That flexibility can be the difference between a late delivery and a satisfied customer.

Cost Efficiency:

Because brokers work across so many lanes and markets, they know where rates are inflated and where they’re competitive. They can negotiate better rates using market data, volume leverage, and carrier relationships.

Additionally, they help businesses avoid costly service failures like missed appointment fees or detention charges by ensuring shipments are matched with the right carrier the first time.

Time Savings:

Managing freight involves much more than scheduling a pickup. You’re dealing with rate quotes, vetting carriers, tracking shipments, resolving issues, handling documentation, and more. 

Brokers take on that administrative burden, freeing up your internal team to focus on high-value activities like optimizing routes, managing customer relationships, or scaling operations.

Risk Mitigation:

Freight brokers play a critical role in reducing your exposure to risk. Reputable brokers carefully vet carriers for safety ratings, insurance compliance, and FMCSA authority before they ever haul a load. If something goes wrong in transit—a late delivery, damaged goods, or an insurance issue—your broker is on the hook to resolve it, not you.

Market Insights:

A good broker doesn’t just move your freight—they give you an edge. Because they operate across multiple markets and industries, they can offer insights on rate trends, capacity shifts, regulatory changes, and even lead times. 

Market intelligence can help logistics teams make smarter, more proactive decisions about routing, timing, and pricing.

When Partnering with a Freight Broker Works Best

Freight brokerage shines when flexibility and responsiveness are top priorities. For example, if your shipping volumes fluctuate from week to week or you occasionally need to book last-minute loads, a broker gives you access to reliable options without long-term commitments. This is especially helpful for small to midsize businesses that lack the leverage or staff to manage multiple carrier contracts. 

This is especially true when testing new strategies, markets, or shipment strategies (like full truckload or less-than-truckload). You can avoid a long contractual agreement and lean on the expertise of a broker to handle the nuances of the supply chain for you. 

If you're expanding into new regions, brokers are invaluable partners. Instead of spending weeks building new relationships or vetting carriers in an unfamiliar market, a broker can provide instant access to pre-vetted providers. They understand the geography, the challenges of delivery windows, and the compliance expectations for retail and industrial shipments alike.

Brokerage also proves its value during periods of tight capacity—whether due to seasonal spikes, weather events, or macroeconomic shifts. Spot rates may be volatile, but brokers can often find creative solutions through their network that would be out of reach for most shippers sourcing carriers on their own.

When It Might Not Be Ideal

That said, freight brokerage isn’t a one-size-fits-all solution. For companies that run predictable, high-volume shipments along dedicated lanes, it often makes more sense to work directly with asset-based carriers. Those relationships can be tailored, cost-locked, and operationally integrated, especially when consistency and efficiency are more important than flexibility.

Likewise, some shipments require very specific handling or equipment, such as specialized flatbeds, hazmat certifications, or temperature-controlled trailers for pharmaceuticals. While some brokers are equipped to handle these, others may not have the niche expertise or carrier base required, making a direct partnership with a specialized carrier the safer choice.

In our experience, some customers prefer an asset-based carrier for the security of their freight. With freight fraud on the rise, unfortunately, this is a reality you must confront as a shipper. When working with an asset-based carrier, you may have greater insight into their security measures. Now, keep in mind, this won’t always be the case. A reliable broker, like National Consolidation Services, carefully vets their carriers and only works with trusted partners who go to lengths to prevent freight fraud. Your broker absolutely should do the same.

How to Decide

If you’re still on the fence about whether freight brokerage is the right fit, here are some practical scenarios where using a broker makes strong business sense:

Urgent or Unpredictable Shipments:

When timing is critical and you're under pressure to move freight fast—whether due to a last-minute order or a delayed production schedule—a freight broker can secure capacity quickly, often within hours. Their vast network allows them to plug into available trucks that you likely wouldn’t find through your existing contacts.

Limited Internal Logistics Resources:

Not every business has the bandwidth to manage multiple carrier relationships, negotiate rates, or troubleshoot problems mid-transit. A freight broker acts as an extension of your logistics team, managing the communication, documentation, and follow-through so your internal staff doesn’t have to.

Expanding into New Markets:

Breaking into a new geographic region often means starting from scratch when it comes to transportation partners. Freight brokers already have established relationships with carriers across the country (and beyond), so they can immediately connect you with reliable providers who know the local delivery landscape and requirements.

Need for Cost Control:

Freight costs can vary wildly by season, lane, and demand. Brokers monitor rate fluctuations across the market and often have more pricing power due to the volume they move. They can help you navigate volatile pricing environments and avoid overpaying for lanes that could be priced more competitively.

Vetting a Freight Broker

Not all freight brokers operate with the same level of professionalism, compliance, or transparency. Here's how to ensure you’re working with a partner who will protect your freight, your reputation, and your bottom line:

Verify Licensing and Bonding:

Ensure they have an active FMCSA license and a $75,000 surety bond as required by law .

Check Operational History:

Review their track record and any past violations.

Read Reviews and References:

Look for feedback from other shippers.

Assess Communication and Transparency:

They should provide clear information and updates.

Final Thoughts

In today's dynamic supply chain environment, freight brokers offer flexibility, cost savings, and access to a broad carrier network. With nearly 26,000 freight brokers operating in the U.S. , choosing the right partner is crucial. If you're uncertain about the best strategy for your shipping needs, our team is here to help you navigate the options and find the right fit.

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