Whats The Difference Between A Freight Broker Or Freight Agent ?

The difference between a freight broker and freight agent is that a freight agent is an individual who works with and for a freight broker as an independent contractor. They are considered to be a sales agent for a freight broker business and a point of contact for the freight broker business. Freight agents will build their own shipper customers and also contract carriers and they work for the freight broker firm under a negotiated percentage of profit of the load commission. The freight agents load commission will be shared with the freight broker firm in return for working under the broker firm’s surety bond, freight broker insurance policy, TMS, and overall the name of the freight broker business.


Freight Brokers are required to obtain a property broker license from the FMCSA and a surety bond for the value of $75,000. Freight brokers are also required to maintain a level of compliance yearly as guided by the FMCSA.

Freight Brokers are responsible for the financial liability of the broker firm. They are daily overseeing the invoicing of new shippers, paying their freight agents, working with freight factoring companies, and making sure that the carriers are paid on the loads moved. Freight brokers are required to keep their records for 3 years and in addition to the financial responsibility they are also responsible for the freight broker insurance. Overall the freight broker has a much higher liability when it comes to moving freight on a daily basis. The freight broker can have a Freight Agent Business Model and have multiple freight agents working within their firm and profits can be much larger by volume,


A freight agent is responsible for growing the firm’s business by matching shippers and carriers together for freight movement. Most freight agents today can work from home under the umbrella of a licensed property broker and can build a substantial business within the firm. Freight agents will work with the shipper and carrier and follow the load movement on behalf of the freight broker. They are paid commissions on the load profit and some freight agents can move 2 to 10 loads a day. Freight agents assume very little liability and can work with multiple shippers and grow a very successful freight agency business.