You're at a crossroads: work with freight brokers or go direct to shippers?
Brokers are easy to find (they're on every load board), but they typically take 10-20% of the revenue, sometimes higher. Shippers pay more since there's no middleman, but they're harder to find and approach.
Most owner operators start 100% with brokers. The successful ones transition to a mix: 50% direct shippers, 30% preferred brokers, 20% spot market. The difference is $15,000-30,000 more per year.
But it's not as simple as "direct is always better." Both have their place. Here's the complete picture.
Understanding the players
What is a freight broker?
A middleman who connects shippers (companies with freight) to carriers (you). They find shippers who need freight moved, post loads on load boards, negotiate rates with both sides, arrange pickup and delivery, track shipments, handle paperwork, and collect payment from shipper to pay you.
How they make money: Shipper pays them $3,000. They pay you $2,400. They keep $600 (20% margin). Think of them as real estate agents for freight.
What is a direct shipper?
The actual company that owns the freight and needs it moved. Manufacturers like Ford or Procter & Gamble, distributors, food producers, retailers with their own logistics.
They are the customer. No middleman. They pay you directly. You negotiate directly with their logistics team.
How payment works: They quote you $3,000. You haul it. They pay you $3,000. You keep all $3,000. Think of it like selling your house yourself instead of using an agent.
The real cost difference
Take a Chicago to Dallas load (1,000 miles).
Working with a broker: Shipper pays broker $3,000. Broker pays you $2,400 (80%). Broker keeps $600 (20%). Your rate: $2.40/mile.
Working direct with shipper: Shipper pays you $2,800 (they save $200, you get $400 more). You keep $2,800. Your rate: $2.80/mile.
Difference: $400 per load (17% more). At 50 loads per year, that's $20,000 more.
But it's not that simple...
Broker freight: pros and cons
The good
Easy to find. Load boards are full of broker freight. Quick to book - call, negotiate, done. No relationship required upfront.
Flexibility. One-off loads, no commitment. You can work with 100 different brokers. Take what you want, decline the rest.
Less administrative work. Broker handles the shipper relationship, tracks the shipment, deals with problems. You just drive.
Payment protection. Many brokers pay faster than shippers (15-30 days). Their credit score is visible so you know the risk. Factoring services work well with brokers.
Access to many shippers. One broker has 50+ shipper customers. You get variety without finding 50 shippers yourself.
No long-term commitment. Don't like a broker? Never call them again. No contracts. Complete freedom.
The bad
Lower rates. They take 10-20% margin (sometimes higher). You could make that money going direct.
Another layer of communication. Broker to you to shipper to receiver. Messages get lost. Slower problem resolution.
Rate negotiation every load. Every load is a new negotiation. Exhausting. They try to lowball you.
Some brokers are terrible. Slow payment, hidden fees, scams, disrespectful treatment.
No loyalty. Broker will use whoever's cheapest. You're a commodity. Constant competition.
Direct shipper freight: pros and cons
The good
Higher rates. No broker margin. 15-25% more per load. $2.80/mile vs $2.40/mile.
Consistent freight. Shippers ship regularly - weekly, daily. Predictable revenue. You can plan ahead.
Relationship building. Become their preferred carrier. First call when freight is available. Mutual loyalty.
Less negotiation. Agree on rates upfront. Less back-and-forth on each load. Rates stay stable.
Direct communication. No middleman. Faster problem resolution. Clear expectations.
Professional growth. Learn about their business. Become a supply chain partner. Sometimes consulting opportunities.
The bad
Harder to find. Not on load boards. Cold calling required. Rejection is common.
Requires established business. Many won't work with new authority. They want to see insurance, safety record, references. Trust takes time to build.
More administrative work. You handle all paperwork. You track the shipment. You deal with their accounting department.
Slower payment. 45-60 days is common. Large companies have long payment cycles. Cash flow challenge.
Higher expectations. They expect perfection. One screw-up can end the relationship. More pressure.
Less flexibility. May require commitment (X loads per week). Can't just decline loads easily. Contracts sometimes required.
Minimum requirements. Some require multiple trucks. Won't work with single-truck operators. Insurance minimums are higher.
The optimal freight mix
Don't choose one or the other. Build a mix.
Year 1: 90% broker freight (spot market), 10% direct shipper (just starting to build). You need cash flow now. Brokers are the fastest way to book loads. Learn the business first, but start planting seeds with shippers.
Year 2: 60% broker freight (30% preferred brokers, 30% spot), 40% direct shipper (3-5 regular customers). You've proven yourself. Shippers are starting to trust you. The mix provides balance of flexibility and consistency.
Year 3+: 50% direct shipper (5-10 regular customers), 30% preferred broker relationships, 20% spot market brokers (fill-in, backhauls). Maximum profitability since half your freight has no broker margin. 80% predictable, 20% flexible for gaps.
How to approach direct shippers
This is where most owner operators fail - they don't know how to approach shippers.
Identify target shippers
Look for shippers who ship regularly in your lanes, use your equipment type, are mid-sized (not Fortune 500, not tiny), and are located near your home base or frequent routes.
Where to find them: Industrial parks along your routes. Manufacturing directories. Google "[Your city] + manufacturers." Ask brokers "Who's the shipper on this load?" - many will tell you.
Research them first
Before calling, learn what they make or distribute, where they ship to, how often they ship, and what their logistics structure looks like (in-house vs outsourced).
30 minutes of research makes for a better pitch.
Find the right contact
You need the Logistics Manager, Transportation Manager, or Shipping Coordinator.
Call the main number: "Hi, I'm a trucking company, who handles your transportation needs?" Search LinkedIn for "[Company] + logistics manager." Check their website under "Contact" or "About."
The pitch
"Hi [Name], my name is [Your Name] with [Your Company]. I'm an owner operator with my own authority, running [lanes]. I noticed you ship [product] to [destinations] regularly, and I specialize in that lane.
I'm looking to build direct relationships with quality shippers. I have [clean DOT record / X years experience / new equipment / whatever your strength is], and I'm wondering if you ever work directly with small carriers or if you're exclusively through brokers?
I'm not looking to take all your freight - I understand you have established relationships - but I'd love to cover any overflow or be a backup option when you're in a pinch."
Follow up (this is the key)
Most shippers will say "Send me your info and we'll keep you in mind" or "We use brokers exclusively right now" or "Call me back in a few months."
This is not rejection. It's "maybe later."
Email them your info the same day. Call back in 2 weeks. Call back monthly for 6 months. Send occasional texts: "Hi [Name], checking if you need any freight covered this week in [lane]."
80% of direct shipper relationships come after 5+ touchpoints. Most owner operators give up after 1.
Prove yourself
When you finally get your first load, this is your audition. Don't blow it.
Show up early. Communicate proactively. Handle it perfectly. Thank them afterward. Ask for another load immediately.
Common mistakes approaching shippers
Asking for all their freight. Bad: "I want to be your exclusive carrier." Good: "I'd love to handle overflow or be your backup when your regular carriers can't cover." They already have relationships. You're not replacing them. Yet.
Giving up after one call. Bad: Call once, they say no, you move on. Good: Call 6 times over 6 months, stay top of mind. They might not need you now but will in 3 months.
Not having professional setup. Bad: No MC authority yet, no website, no professional email, truck isn't clean. Good: Established authority (6+ months), professional email ([you]@[yourcompany].com), clean truck with company name/MC, safety record ready to show. Shippers won't risk their freight on unprofessional carriers.
Being pushy. Bad: "You need to use me, I'm the best, here's why brokers are ripping you off." Good: "I understand you have established processes. I'm just introducing myself for future opportunities." They hate being sold. Build relationship first.
How to manage both brokers and shippers
Practical weekly schedule:
Monday: Check with 3-5 direct shippers - "Anything this week?" Book 1-2 direct loads for the week.
Tuesday-Friday: Fill gaps with broker freight. Use preferred broker relationships first. Use spot market only for backhauls and fill-in.
Result: 50% direct (booked Monday), 50% broker (booked as needed).
Payment differences
Broker payment terms: Standard is net 30 days. Quick pay is 2-5 days (minus 3-5% fee). Most brokers work with factoring.
Direct shipper payment terms: Small shippers pay in 30 days. Mid-size is 45-60 days. Large corporations are 60-90 days. Quick pay is rare. Many shippers won't work with factoring companies.
Cash flow strategy: Use broker freight (fast pay) to cover expenses. Direct shipper freight (slow pay) builds your reserves.
How FF Dispatch gives you best of both worlds
Building direct shipper relationships takes 12-24 months. Requires constant cold calling and follow-up. Many rejections. Time-consuming.
What if you could access direct shipper freight and broker freight without the legwork?
We have direct shipper relationships - years of established connections. Shippers trust us. You benefit from our credibility.
We have preferred broker relationships - access to both markets. Best rates from both sources. More options means better optimization.
We handle the mix for you. Balance cash flow with broker quick pay. Maximize profit with shipper direct rates. Consistent freight. You just drive.
Transparent pricing at 7% whether it's direct shipper or broker freight. You see all rate confirmations. No hidden markups.
"Solo, I was 100% broker freight at $2.45/mile average.
With FF Dispatch: They have direct shipper relationships I could never get. Now 60% of my freight is direct at $2.75/mile+. My weekly gross went from $5,200 to $6,400."
Access Direct Shipper & Broker Freight →
The bottom line
Brokers are easy to find, fast to book, and flexible - but you get lower rates (10-20% less, sometimes more).
Direct shippers mean higher rates (15-25% more), consistent freight, and relationship-based business - but they're hard to find and slow to build relationships with.
The winning strategy: Start with brokers (100% in year 1). Build toward a 50/30/20 mix (50% direct, 30% preferred brokers, 20% spot). Takes 2-3 years. Worth $15,000-30,000 more per year.
Start planting seeds today. The relationships you build this year will pay off for the next decade.
Related Posts:
- How to Build Broker Relationships That Get You First Call
- How to Spot and Avoid Freight Broker Scams
- How to Negotiate Broker Rates Like a Pro
- Finding Your First Load as an Owner Operator
- Best Load Boards for Owner Operators 2026
Resources:
- Download: Shipper Prospecting Template
- Script: Cold Call Scripts for Shippers
- Tracker: Shipper Relationship Tracker
Sources:
- Freight 360 - How Important are Freight Broker Margins? - Industry broker margin analysis
- Overdrive - How much money are freight brokers really making from truckers?
- ATS - How Freight Brokerages Make Money
- Owner operator shipper relationship experiences from TruckersReport.com forums
- Direct shipper vs broker rate comparisons (2025-2026)