Transportation Operations LINCS Practice Exam

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What is the basic function of a freight broker?

To own and manage freight transportation assets
To organize distribution routes for delivery
To act as an intermediary between shippers and carriers
To ensure regulatory compliance for shipments

The correct answer is: To act as an intermediary between shippers and carriers

The fundamental role of a freight broker is to act as an intermediary between shippers and carriers, facilitating the process of transporting goods. This involves connecting businesses that need to ship products with transportation companies that can carry those goods. By leveraging a network of carriers, freight brokers help shippers find the right option for their specific needs, considering factors such as cost, expertise, and availability. Freight brokers also negotiate rates and terms, manage communication, and provide updates throughout the shipment process, ensuring efficiency and satisfaction for both parties. While they do not own transportation assets themselves, their expertise in logistics and the transportation market allows them to match shippers with carriers effectively, making their role crucial in the supply chain. This focus on facilitating connections and ensuring smooth operations distinguishes the freight broker from roles that involve directly managing transportation assets, organizing routes, or ensuring compliance, which are different aspects of logistics and transportation management.