What does the term "broker" refer to in logistics?

In the context of logistics, the term "broker" specifically refers to an intermediary that facilitates the arrangement of transportation of freight on behalf of a shipper. This role is crucial as brokers connect shippers in need of transportation services with carriers who can transport the freight. They help optimize the logistics process by managing contracts, negotiating rates, and ensuring timely delivery, while allowing shippers to focus on their core business activities without needing to directly manage transportation logistics.

By positioning themselves between the shipper and carrier, brokers leverage their industry knowledge and connections, which can lead to better rates and service options for their clients. Their involvement is vital for efficient supply chain management and provides a layer of administrative support and expertise in navigating the complexities of freight transportation.