Understanding Freight Brokerage Margins
Gross Profit is the difference between what a shipper pays the brokerage (revenue) and what the brokerage pays the carrier (cost). This is the core metric brokerages use to evaluate load profitability before overhead.
Margin Percentage represents gross profit as a fraction of total customer revenue: (Gross Profit ÷ Customer All-In) × 100. Most freight brokerages target 10–18% on standard loads. Margins below 5% typically result in net losses after accounting for insurance, software, and back-office costs.
FSC Spread: Many brokerages charge the shipper a higher FSC than they pass through to the carrier. This creates additional margin beyond the line-haul spread. Some operations keep a flat FSC spread per load; others use a percentage markup.
Accessorial Margin: Accessorial charges (lumper fees, liftgate, detention, etc.) are another source of brokerage profit. The spread between what you bill the customer and what you reimburse the carrier directly impacts gross profit.
Related freight tools: Use the Lane Rate Analyzer to evaluate individual carrier rates before booking. Pair this tool with the Deadhead Calculator to factor repositioning costs into your margin decisions, or use the Fuel Surcharge Calculator to determine standard FSC spreads.