Brokerage

Brokerage refers to a fee or commission charged for arranging or handling freight transactions. In the logistics industry, brokerage plays an important role in arranging transportation services between shippers and carriers.

The functions of brokerage include mediating between shippers and carriers, negotiating freight contracts, organizing shipments and handling freight transactions. Brokerage companies act as intermediaries and offer services that help shippers to find the best transportation options and carriers to optimally utilize their capacities.

The importance of brokerage is that it helps shippers save time and resources by allowing them to focus on their core business while logistics activities are managed by professionals. For carriers, brokerage offers the opportunity to offer their services to a broader customer base and maximize their utilization.

Brokerage fees can vary depending on the company and the type of freight. They can be based on several factors, including the type of transportation mode, the distance of the shipment, the type of freight and the specific requirements of the shipper. Companies using brokerage services should carefully weigh the costs and benefits to make the best decisions for their transportation needs.