Carrier & Broker Ecosystem

Glossary

Authority, double brokering, carrier scorecards, and more. Learn the terms that define the carrier and broker relationships shippers depend on.

3PL vs. Freight Broker
A 3PL (third-party logistics provider) manages warehousing, fulfillment, and transportation services, while a freight broker strictly arranges carrier capacity - the key difference is scope of service.
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4PL (Fourth-Party Logistics)
A logistics orchestration model where a single provider manages and coordinates a shipper's entire supply chain - including overseeing 3PLs, carriers, freight brokers, and technology platforms - acting as a strategic control tower.
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Asset-Based Carrier
A transportation company that owns and operates its own trucks, trailers, and equipment, moving freight with drivers on its own payroll rather than subcontracting loads to other carriers.
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Carrier Compliance
The ongoing verification that carriers in your network maintain valid operating authority, adequate insurance coverage, acceptable safety ratings, and adherence to regulatory and contractual requirements.
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Carrier Network
The complete pool of approved carriers and brokers a shipper can tender freight to - including asset-based carriers, freight brokers, and specialty providers across all modes and geographies.
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Carrier Onboarding
The process of vetting, approving, and setting up a new carrier in your transportation network - covering insurance verification, authority checks, rate agreements, and system configuration.
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Common Carrier
A transportation provider that offers freight services to the general public under published rates and standardized terms, with a legal obligation to serve all shippers without discrimination.
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Contract Carrier
A transportation provider that moves freight for specific shippers under individually negotiated rates and service agreements, rather than offering service to the general public.
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Freight Broker
A licensed intermediary that arranges the transportation of freight between shippers and carriers without owning trucks, earning a margin on the spread between what the shipper pays and the carrier receives.
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Freight Forwarder
A logistics intermediary that organizes and coordinates the shipment of goods across international borders, managing documentation, customs clearance, and multimodal transportation on behalf of the shipper.
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Managed Transportation
An outsourced logistics model where a third-party provider takes operational responsibility for some or all of a shipper's transportation management - including carrier selection, load execution, freight audit, and performance reporting.
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Motor Carrier Authority
The federal operating license issued by the FMCSA that grants a trucking company the legal right to transport freight for hire in interstate commerce.
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NVOCC
A Non-Vessel Operating Common Carrier - a company that issues its own ocean bills of lading and sells ocean freight capacity to shippers without owning or operating the vessels that carry the cargo.
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Non-Asset Carrier / Broker Model
A transportation intermediary that arranges freight movement using a network of subcontracted carriers rather than operating its own trucks - encompassing freight brokers, non-asset 3PLs, and digital freight platforms.
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