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06/16/2025

Freight Forwarders & Co-Brokerage

Bridging the Gap in OTR Trucking

Aerial view of Long Beach Port with cargo ships, cranes, and containers, showcasing a bustling shipping hub and vibrant coastal scenery.

Key Takeaways

  • Freight forwarders play a crucial role in global supply chains but often face challenges in managing domestic over-the-road (OTR) trucking, particularly in full truckload (FTL) or less-than-truckload (LTL) scenarios.
  • Co-brokerage is a legal arrangement that allows freight forwarders to partner with other authorized brokers to manage shipments, helping them maintain customer relationships while leveraging the operational capacity of their co-brokers.
  • This collaboration enables freight forwarders to offer comprehensive services, including domestic pickup and delivery, without the burden of directly handling the complexities of domestic trucking.

Freight forwarders are vital players in global supply chains. They excel at coordinating international shipments — navigating customs, documentation, and long-haul modes like ocean, air, and rail. But when it comes to domestic over-the-road (OTR) trucking, particularly full truckload (FTL) or less-than-truckload (LTL), many freight forwarders encounter a critical gap.

That’s where co-brokerage comes in.

At Freight SideKick, we routinely work with freight forwarders who need help sourcing capacity and managing OTR freight within the U.S. In this article, we explain how co-brokerage helps freight forwarders bridge the OTR gap — and do so in a legal, transparent, and customer-first way.

Why Freight Forwarders Need OTR Support

Most freight forwarders specialize in:

  • International shipping (import/export)
  • Customs clearance
  • Ocean and air freight booking
  • Warehousing and container drayage

However, many don’t have:

  • A strong carrier base for domestic trucking
  • Deep familiarity with U.S. trucking lanes, rates, and capacity sourcing tools

This creates a service gap when customers ask for:

  • Door-to-door service that includes domestic pickup or delivery
  • Complex intermodal freight moves involving local drayage, LTL, or long-haul OTR legs
  • Just-in-time deliveries that require truckload expertise

What Is Co-Brokerage, and How Does It Help?

Co-brokerage is a legal arrangement between two FMCSA-authorized freight brokers to jointly manage a shipment. The key is transparency:

  • The freight forwarder maintains the relationship with the customer.
  • The co-broker brings the carrier relationships, tech tools, and operational capacity.

This means the forwarder can still own the customer experience without needing to take on the risk or operational burden of domestic trucking. It’s a win-win.

Why It’s Not Double Brokering

There’s understandable confusion between co-brokerage and double brokering, especially when freight changes hands. But here’s the difference:

Practice Legal? Description
Co-Brokerage ✅ Yes Transparent agreement between two brokers
Double Brokering ❌ No A carrier or unauthorized party re-brokers a load without disclosure

As long as all parties (especially the shipper and carrier) know who’s involved and who’s hauling the freight, co-brokerage is a legal and valuable tool for solving capacity challenges.

When Should Freight Forwarders Use a Co-Broker?

  • Domestic Pickup & Delivery: When international freight needs domestic legs covered
  • LTL Consolidation or Deconsolidation: Forwarders that don’t specialize in LTL can rely on brokers that do
  • Surge Volume: Project-based imports may overwhelm your carrier network
  • Specialized Freight: Reefer, hazmat, or over-dimensional loads require expert partners

Why Freight Forwarders Choose Freight SideKick

At Freight SideKick, we:

  • Handle LTL, FTL, and specialized freight across North America
  • Provide full transparency and compliance through co-brokerage agreements
  • Use digital quoting and booking tools to simplify domestic legs
  • Act as a white-label capacity partner, letting forwarders own the customer relationship

Whether you’re moving container freight inland, building domestic delivery programs, or looking for a reliable partner during peak season — we help forwarders scale without compromise.

Let’s Bridge the Gap Together

If you're a freight forwarder looking to streamline or expand your OTR trucking capabilities, co-brokerage might be the missing piece.

Visit our Co-Brokerage Page to request a co-brokerage agreement and learn how Freight SideKick can help you deliver more — without taking on more risk.

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Frequently Asked Questions

What is the role of freight forwarders in global supply chains?

Freight forwarders are essential in coordinating international shipments, managing customs, documentation, and various long-haul transportation modes such as ocean, air, and rail.

What is co-brokerage and how does it benefit freight forwarders?

Co-brokerage is a legal arrangement between two authorized freight brokers to jointly manage a shipment. It allows freight forwarders to maintain customer relationships while leveraging the co-broker's carrier connections and operational capacity, thus bridging the gap in domestic OTR trucking.

How does co-brokerage differ from double brokering?

Co-brokerage involves a transparent agreement between two brokers, making it legal and compliant, while double brokering occurs when a carrier or unauthorized party re-brokers a load without disclosure, making it illegal.