What Does a Freight Brokerage Do? A Complete Guide for 2025

Key takeaways

Modern freight brokers are strategic logistics partners who connect shippers with vetted carriers while managing the entire shipping process from booking to delivery.
A quality broker maintains a carefully vetted carrier network, handles multiple freight modes (dry van, reefer, flatbed, etc.), and combines technology with personal service for reliable execution.
The best brokers provide both flexibility to handle varying shipping needs and stability through consistent service, maintaining 95%+ on-time delivery rates and minimal claims.
When choosing a broker, focus on their business stability, service capabilities, technology systems, customer service approach, and verified performance metrics.
Look for brokers who excel at problem-solving and maintain strong carrier relationships — because in transportation, challenges will arise, and you need a partner who can handle them effectively.

Badger Logistics delivers expert partial shipping services for reliable and efficient transportation of your mid-sized freight. Learn more about our partial freight services and get a competitive rate quote to join hundreds of shippers discovering a better alternative to traditional LTL.

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A brief introduction

After nearly two decades in freight brokerage, including running my own flatbed department before joining Badger Logistics, I've seen this industry from every angle.

Today, I want to break down exactly what freight brokers do, how we create value for shippers, and what to look for when choosing a brokerage partner in 2025.

📄 Download our free freight carrier selection checklist ⭢

The evolution of freight brokerage

Freight brokerage started as a simple concept: connecting shippers who need to move goods with carriers who have available capacity. But in today's complex logistics landscape, that role has evolved significantly. Modern freight brokers are strategic partners who solve complex transportation challenges while managing risk and ensuring compliance.

The brokerage industry emerged largely because asset-based carriers couldn't efficiently serve all shipping needs.

For instance, at Badger, we initially developed our brokerage division because our asset-based operation was turning down opportunities. A shipper might need service in areas where our trucks don't regularly operate, or they might need specialized equipment we don't maintain in our fleet. Rather than simply saying "no," we can leverage our brokerage network to find solutions.

Today's freight brokers handle everything from standard dry van shipments to complex multi-mode movements requiring specialized equipment and permits. We've become problem solvers who understand not just transportation, but the broader supply chain challenges our customers face.

Core functions of a freight broker today

Freight brokerage

1. Carrier sourcing and vetting

One of our most crucial functions is maintaining and vetting a reliable carrier network. At Badger, we work with over 15,000 carriers, but we don't just add anyone to our network. Our vetting process is thorough and ongoing because we understand that our reputation depends on the performance of our carrier partners.

Here's what our vetting process looks like:

Minimum 12 months operating history with their MC authority (your MC number should be as familiar as your social security number in this industry)
Clean safety records checked through Carrier 411
Verification of proper insurance coverage ($250,000 cargo and $1 million liability at minimum)
No history of double-brokering loads
Regular monitoring of CSA scores
Contract compliance including Carmack Amendment
Additional verification of workman's comp coverage
Continuous performance monitoring

2. Mode and equipment matching

Modern freight brokers handle virtually every type of freight movement. At Badger, we've expanded from primarily dry van to handle:

Full Truckload Services	Dry van (53' trailers, up to 45,000 lbs) Refrigerated (temperature-controlled from -20° to 80°F) Flatbed (including specialized equipment) Intermodal Over-dimensional and heavy haul (up to 12' wide, under 80,000 lbs)
Partial Load Services (typically 4+ pallets or 4,000+ lbs)	Dry van partials Flatbed partials Intermodal partials

Each mode has its own complexities. For example, flatbed shipping isn't just about having an open deck — you might need a standard flatbed, step deck, Conestoga, RGN, or specialized multi-axle trailer. Even something seemingly simple as tarping requires expertise — you need road-grade tarps, not hardware store tarps that will tear up.

3. Rate negotiation and management

Understanding freight rates requires deep market knowledge. Rates fluctuate based on numerous factors:

Seasonal Influences:

Produce seasons affecting reefer capacity
Construction season affecting flatbed demand
Retail peak seasons
Holiday shipping surges

Market Conditions:

Regional capacity imbalances
Fuel costs and surcharges
Weather events
Infrastructure changes (like rail embargoes)
Driver availability
Equipment availability

Load-Specific Factors:

Distance and lane
Equipment type
Special requirements (liftgate, pallet jack, etc.)
Delivery appointment requirements
Loading/unloading times
Multiple stops or drops

In today's market, especially post-COVID, we're seeing unprecedented rate volatility. Contract rates are starting to come down while spot rates are going back up. A good broker understands these dynamics and can help shippers navigate them effectively.

3. Shipment execution and monitoring

This is where the rubber meets the road. Once a load is booked, we handle:

Pre-Transit:

Scheduling pickup and delivery appointments
Coordinating with facilities
Ensuring proper equipment is available
Verifying insurance and regulatory compliance
Confirming special requirements

During Transit:

Tracking shipment progress
Providing status updates based on customer preferences
Managing exceptions and delays
Coordinating with drivers and facilities
Ensuring appointment compliance

Post-Transit:

Collecting and verifying delivery documentation
Processing carrier payment
Handling any claim issues

At Badger, we take a balanced approach to technology and personal service. While we have modern TMS systems and tracking capabilities, we believe in maintaining human connections. When problems arise, having a relationship with someone who can solve problems is invaluable.

The value of a strategic brokerage partner

There are a ton of brokerages out there — but only a fraction of them can actually help you with logistics strategy. There are three reasons you want to find and work with these brokerages specifically.

Flexibility and problem-solving

Flexibility is one of the main advantages of working with a broker.

Here's a real-world example: We have a customer who ships dry van freight throughout summer months, but in winter, their product could freeze. They need to switch to temperature-controlled equipment. If they worked directly with a carrier, they'd be limited to that carrier's equipment types. Through our brokerage network, we can seamlessly transition between equipment types as needed.
Another example: When a customer suddenly needs to ship to Arizona, but their regular carrier doesn't service that area, we can quickly source a qualified carrier through our network. This flexibility allows shippers to say "yes" to new business opportunities without worrying about transportation constraints.

Managing risk

Risk management in freight brokerage goes beyond basic insurance coverage. We help manage risk through:

Insurance and liability	Verifying appropriate cargo insurance levels Ensuring proper liability coverage Maintaining contingent cargo coverage Requiring workman's comp coverage
Compliance	Monitoring carrier safety ratings Tracking regulatory compliance Maintaining required permits and certifications Documenting chain of custody
Operational risk	Vetting carriers beyond basic requirements Monitoring performance metrics Managing cargo claims Ensuring proper documentation Maintaining secure payment processes

Market intelligence

A good broker serves as your eyes and ears in the transportation market, providing valuable insights that help you make informed decisions. For example, we continuously monitor market conditions, including current rate trends by lane and mode, capacity availability, seasonal challenges, regional market dynamics, and industry news that could impact your operations.

Beyond keeping you informed, we also identify optimization opportunities to enhance efficiency and reduce costs. Our recommendations cover mode selection, consolidation opportunities, route optimization, scheduling improvements, and strategic cost-saving measures.

Choosing the right freight broker

freight brokerage

After 15 years in this industry, I've seen what makes broker-shipper relationships succeed or fail. When you're evaluating a potential freight broker, there are several critical areas you need to examine carefully.

Let me walk you through what I'd look for if I were in your shoes.

First, dig into their business stability. This might seem obvious, but you'd be surprised how many shippers skip this step and regret it later. Look at how long they've been operating — longevity matters in this industry because it takes time to build reliable carrier networks and develop the expertise to handle complex shipping challenges. Don't just ask how long they've been in business; ask about their experience in your specific industry. A broker might have been around for 20 years, but if they've never handled your type of freight, that experience might not help you much.
Financial stability is another crucial factor. Check their credit rating and ask about their payment practices with carriers. This matters more than you might think — a broker who doesn't pay carriers promptly will struggle to maintain good carrier relationships, which ultimately affects their service to you. At Badger, we maintain a Gold Book-rated credit score because we understand how important this is to both carriers and shippers.
When it comes to service capabilities, you need to look beyond the basics. Sure, any broker can tell you they handle dry van shipments, but what about when you need something special? Ask detailed questions about their experience with different equipment types and freight modes. For example, if you occasionally need flatbed service, do they understand the differences between various flatbed equipment types? Can they handle specialized requirements like protecting freight from weather during loading and unloading?
Technology is another area where you need to look carefully, but don't get dazzled by flashy systems. The key is finding a broker who combines good technology with strong personal service. In my experience, the most effective approach is having both robust tracking systems and experienced people who know how to use them. Ask about their communication protocols — how do they handle updates? Can they adapt to your preferred communication methods? The best brokers will be flexible, whether you want regular email updates or just notifications when there's an exception.
The human element is crucial in brokerage, which brings us to customer service. This is where you really need to dig deep. Ask who will handle your account and what happens when that person isn't available. At Badger, we've structured our team so that every customer has a dedicated contact, but also backup support that's familiar with their business. You want to know that whoever picks up the phone understands your needs and has the authority to solve problems.
One thing I've learned over the years is that performance metrics tell an important story, but you need to know how to read them. A broker should be able to show you specific numbers for on-time pickup and delivery rates. For context, you should expect to see pickup performance around 99% and delivery performance of 95% or better. But don't just look at the numbers — ask how they measure and report these metrics. A good broker will be transparent about their performance and have systems in place to track and improve it.
Claims history is another telling metric. In our brokerage operation, we typically see only one or two claims per year. That's not by accident; it's the result of careful carrier selection and proactive communication. Ask potential brokers about their claims ratio and, more importantly, how they handle claims when they do occur. The best brokers will have clear processes for both preventing and resolving claims.
Finally, don't underestimate the value of references and reputation. Ask to speak with current customers, particularly those in your industry or with similar shipping needs. A good broker should be able to provide references readily. Pay attention to their customer retention rate — it's one of the best indicators of service quality and reliability.

Here's something many shippers overlook: ask about their process for handling exceptions. In transportation, problems will eventually arise — weather delays, equipment breakdowns, facility issues. What separates good brokers from great ones is how they handle these situations.

Do they have 24/7 support?
How do they communicate problems?
What resources can they bring to bear when things go wrong?

These are the questions that help you understand what kind of partner you're really getting.

A few thoughts on the future of freight brokerage

The brokerage industry continues to evolve, with more digital freight matching platforms and automated solutions entering the market. However, I believe the most successful brokers will be those who combine technology with strong personal relationships and industry expertise.

We're seeing this play out in several ways:

Technology integration	Digital freight matching platforms Real-time tracking and visibility Automated booking and payment systems Predictive analytics for capacity and pricing
Personal service	Monitoring carrier safety ratings Tracking regulatory compliance Maintaining required permits and certifications Documenting chain of custody

The key here is finding the right balance. Technology should enhance service, not replace the human element that's crucial for solving complex logistics challenges.

Final thoughts and next steps

A freight broker should be more than just a middleman - they should be a strategic partner in your supply chain. The right broker brings value through their carrier relationships, market knowledge, problem-solving abilities, and commitment to service.

In my experience, the most successful broker-shipper relationships are built on trust, communication, and mutual understanding of business needs.

At Badger Logistics, we've built our brokerage operation on these principles, combining the personal touch of a family-owned business with the capabilities of a modern logistics provider. Whether you're shipping one load or managing a complex supply chain, understanding how freight brokerage works is crucial for making informed decisions about your transportation strategy.

What Does a Freight Brokerage Do? A Complete Guide for 2025

Drew Kirkman

Author BIO