Freight Brokerage

What is Freight Brokerage?

Freight brokerage is a separate branch of business, the purpose of which is to organise freight orders and pass them on to freight carriers. It should not be confused with the freight forwarding business, as it does not have its own vehicles or storage facilities. For this reason, freight brokerage can best be compared to a freight exchange which passes on freight orders to permanent or occasional carriers. The freight broker is therefore also the principal and, accordingly, the invoice recipient of the carrier.

According to the legal basis in the German Commercial Code, the freight broker is not a party to the freight business and therefore does not bear responsibility for the execution of the transport.