Less than Truckload companies use several methods to determine the price they charge to ship an item for you. The most common is Freight Class. The National Motor Freight Traffic Association issues a publication called the “National Motor Freight Classification” or NMFC. This serves as the rule and guide to the trucking industry and is used to determine the “classification” of shipments. The price you pay to ship an item is directly tied to its stated freight classification.

Very simply, it's an individual or a company that brings together a shipper that needs to transport goods with an authorized motor carrier that wants to provide the service. A freight broker falls into the category of transportation intermediary, which is a company that is neither a shipper nor an asset-owning carrier, but plays a role in the movement of cargo. Brokers provide an important and valuable service to both motor carriers and shippers. They help carriers fill the trucks and earn a commission for their efforts.

Many businesses have limited resources to staff an in-house traffic or logistics department. Instead, they source that work out to a freight management provider. These companies are in daily communication with the trucking industry and have the expertise to negotiate competitive freight rates while maintaining the customer's delivery schedule. These providers are freight brokers.