What Is The Main Difference Between A Freight Broker & Agent

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 # Here Are Some Important Differences Between A Freight Broker & Freight  Agent#

The most  significant difference is that a freight agent is usually an individual who  acts as an independent contractor sales representative for a freight broker. Agents have their own customer base and usually  work by commission. A partial amount of the agent's gross revenue is collected by the broker in return for  administrative support, flow, insurance, liability mitigation , and the freight broker's overall reputation.

## Freight Broker## 

A Freight Broker is required to be licensed by the FMCSA and to obtain a surety bond. They also have to assume responsiblity for all financial details of the company, such as invoicing shippers, payment of carriers, extension of credit, claim assistance, agent commissions etc. Most importantly freight brokers must carry the risk of granting credit to customers , so it's crucial that they analyze and monitior a customer's credit .   

### Freight Agent###

A Freight Agent on the other hand assumes responsibility for sales and the coordination of carriers & shippers . The typical agent normally works from the comfort of their own home under the guidance of an licensed freight broker. With this being said, they have minimal or no liability but are able to earn a pretty substantial income that is solely based on the profits generated from customers. The agent's is assigned to have interaction with both shippers and carriers  to ensure that the freight is picked up and delivered in a timely manner. It is also that the fright arrives at it's destination in good condition problem- free.

A typical day for the average Freight Agent consists of soliciting new customers, providing rates of frieght , sourcing carriers, carrying on negotiations with shippers and carriers, dispatching carriers, handling scheduling, and providing solutions to any problem that may  delay or damage shipments.