Broker Fee / Commission
A broker fee (or broker commission) is the margin a freight broker keeps between what a shipper pays to move freight and what the carrier receives for hauling it. The typical broker margin is 15–25% of the shipper's total rate.
In Depth
Broker margins are not publicly disclosed by most brokers, but regulations in some states and increasing transparency tools (like DAT's Transparency Score) have brought more visibility to broker margins. A shipper paying $3.00/mile and a broker offering a carrier $2.40/mile reflects a 20% margin.
Carriers are not entitled to see the shipper rate, though some direct shippers voluntarily disclose it. The practice of requesting broker transparency — asking what the shipper paid — is common but often refused.
Broker margins vary significantly by load complexity. Simple, high-volume dry van lanes command thin margins (10–15%). Complex loads (hazmat, oversize, time-critical) can see margins of 25–35% because the broker's value-add in finding qualified carriers is higher.
Usage Example
Example: 'The broker offered me $2.20/mile on a Chicago–Denver lane. I checked DAT and saw the average was $2.80/mile — they were taking a 21% margin.'
Related Calculators
Related Terms
Broker
A freight broker is a licensed intermediary that connects shippers who need to move freight with carriers who have available capacity. Brokers earn a commission (the spread between what shippers pay and what carriers receive).
Rate Confirmation
A rate confirmation (rate con) is a document issued by a broker to a carrier that outlines the terms of a load: pickup and delivery locations, freight description, rate, accessorial rates (detention, TONU), and payment terms.
Load Board
A load board is an online marketplace where freight brokers and shippers post available loads, and carriers search for freight that matches their equipment and preferred lanes. Major load boards include DAT and Truckstop.com.
Spot Rate
A spot rate is a one-time market price for moving a specific load, negotiated at the current moment based on supply and demand. Spot rates fluctuate daily and represent the transactional freight market as opposed to long-term contract rates.
Frequently Asked Questions
What is a typical freight broker margin?
15–25% of the shipper rate is typical. Some brokers run tighter on high-volume standard lanes; margins are higher on complex or time-critical loads.