Digital Freight Brokerages Explained
What is Digital Freight Brokerage?
A digital freight brokerage is an online platform that connects shippers with available drivers to move freight, typically through apps or web portals. Shippers input shipment details, and the system automatically matches them with nearby carriers that fit their requirements. These platforms allow for quick setup, real-time tracking, and flexible, ad hoc arrangements—making them especially appealing to smaller or growing businesses that need short-term delivery options.
According to Allied Market Research, the global digital freight brokerage market was valued at over $3.6 billion in 2022 and is projected to exceed $13 billion by 2032, driven by the ongoing push for automation and on-demand logistics solutions.
It is useful for shippers who need to quickly find and book drivers without long-term contracts, and it also helps carriers fill empty truck space fast, improving efficiency and reducing downtime. In addition, it’s well-suited for small shippers and one-time pickup needs, offering flexibility and on-demand access to available drivers.
It generally works in the following way:
- Enter shipment details – The shipper adds load information like pickup, drop-off, size, and special needs.
- Find nearby drivers – The app filters and shows available drivers who fit those requirements.
- Confirm the match – Both sides agree on price and timing through the platform.
- Start and track delivery – The driver picks up the load, and the shipper can track progress in real time.
- Monitor performance – The app helps manage driver reliability and delivery results.
Digital Freight Brokerage vs. Traditional Brokerage
Digital freight brokerages operate entirely online using automation and apps, while traditional brokers rely on TMS technology combined with human relationships and direct communication. Although fully digital platforms offer speed and round-the-clock availability, traditional brokers continue to outperform in customer service, flexibility, and managing complex logistics. Most shippers find that both models have their place, depending on shipment needs and service expectations.
67% of shippers say service level and reliability are the top factors when choosing a freight partner — factors that digital options often fail to address. This is because digital freight brokerages operate completely online, without the benefit of real human interaction. Traditional freight brokerage services still offer key benefits, such as personalized customer service and flexible support that can be tailored to specific needs.On the other hand, digital freight brokerages offer advantages in that the service is highly automated and can effectively be available 24 hours a day. What’s more, digital brokerage may be more beneficial in the event of emergency shipments.
Many shippers continue to partner with traditional brokers for their experience and flexibility, over the efficient, automated (but sometimes one-size-fits-all) service that fully digital alternatives may supply.
Advantages of Digital Freight Brokerage
Digital freight brokerages promise automation, cost efficiency, real-time visibility, smarter load matching, and data-driven decision-making. They aim to simplify logistics by reducing manual coordination and offering shippers faster access to available drivers. However, while these tools can streamline basic shipments, their advantages are often limited to simpler moves that don’t require hands-on management.
McKinsey & Company found that digital freight procurement has attained high adoption rates. In fact, many so-called traditional freight brokerages have incorporated digital freight matching capabilities into their operations, effectively augmenting their human workforce with highly efficient digital capabilities. Think of these as the modern freight brokerage: neither a fully digital freight matching platform, nor a glorified call center lacking in sophisticated logistics technology. This suggests that there are advantages to these systems despite their limitations and uneven adoption across the industry. Below, we look at these in more detail.
Efficiency and Automation
Traditional brokerage typically involves human contact, which revolves around phone calls, emails, and physical meetings. Setting up shipments this way can require extensive time and set up work.
Fully digital brokerage solutions, however, connect shippers with drivers within a matter of minutes, based on all their key considerations. It’s a great solution for smaller operations with one-off deliveries ready to go.
Both digital freight brokerages and modern freight brokerages use automation and artificial intelligence to help map out the best routes for drivers from the shipper’s pick-up to delivery destinations.
Cost Savings
Because they employ fewer operations staff, digital freight matchers are able to hold their overhead costs lower relative to traditional and modern freight brokerages. In many cases, digital freight matchers even make their services more appealing to shippers by lowering costs to compete with traditional firms.
Real-Time Visibility
Just as how carriers might optimize processes with TMS, brokerages can also help to optimize and streamline delivery execution in real-time.
Just as other brokerages provide tracking via their TMS, many digital freight brokerages embed GPS into their apps, meaning that shippers and drivers always have complete real-time shipment visibility.
Enhanced visibility improves communication between all parties, reduces the risk of cargo theft, and helps shippers manage customer expectations
Improved Freight Matching
Traditional freight matching, though effective, can be painstaking and may require some trial-and-error (even with the best brokerages). Digital platforms, however, take into account all of a shipper’s specific needs and match them as closely as possible to ideal drivers nearby.
This improved freight matching is available in minutes through app interfaces. While traditional services still tailor matching to their clients through contextual understanding and personalization, many shippers choose the fully digital alternative for the enhanced speed and efficiency it offers.
Disadvantages of Digital Freight Brokerage
Digital freight brokerages offer speed and automation but often fall short in customer service, flexibility, and handling complex freight beyond A-to-B truckload moves. Heavy reliance on automation, unsustainable pricing, and one-size-fits-all processes limit their effectiveness compared to traditional or hybrid brokerages.
According to a survey by the American Journal of Transportation, 67% of shippers rank service level and reliability as the most important factors when choosing a freight partner. This underscores one of the key weaknesses of digital freight brokerages: while automation can speed up matching and pricing, it often comes at the expense of personalized service and problem-solving. Below, we examine some of the main disadvantages that continue to limit the effectiveness of purely digital brokerage models.
Limited Customer Service
Digital platforms often lack human support, leaving shippers without quick help when issues arise—such as delays, damaged freight, or last-minute changes. This can lead to frustration and slower problem resolution.
Overreliance on Automation
Automation handles basic tasks well but struggles with exceptions. Without human oversight, small data errors or route disruptions can quickly escalate into bigger delivery problems.
Unsustainable Pricing Models
Many digital brokers gained traction by underpricing shipments to grow volume. This approach has proven unstable, with several major players pivoting, scaling back or closing altogether after failing to stay profitable.
One-Size-Fits-All Approach
Most digital freight matching platforms use standardized processes that don’t adapt well to unique or specialized freight needs. Complex, multi-stop, or time-sensitive loads often require the flexibility only human brokers provide.
Data and Transparency Concerns
While promoting visibility, digital systems sometimes misreport shipment status or lack clarity on data ownership. These gaps reduce trust and undermine one of their main selling points.
Limited Scope for Complex Logistics
Digital freight brokerages mainly serve standard truckload (TL) shipments. They rarely handle multimodal, LTL, or international freight effectively, making traditional or hybrid brokers a better fit for complex operations.
Who Benefits from Digital Freight Brokerage?
Digital freight brokerages can help shippers, carriers, drivers, and brokers improve visibility, matching speed, and cost efficiency. However, their advantages are strongest in smaller or simpler operations, while larger and more complex logistics still depend on traditional or hybrid models for flexibility and service.
McKinsey & Company reports that more than 50% of large shippers with annual revenues over $500 million have already implemented at least five digital logistics use cases. This growing adoption shows that digital tools are gaining traction—especially among large, data-driven organizations seeking efficiency at scale. Below, we look at how digital freight brokerage benefits several groups:
- Shippers and carriers gain speed, transparency, and automated driver matching for faster delivery planning.
- Customers experience more predictable and transparent deliveries through real-time tracking.
- Drivers access flexible, on-demand loads that reduce downtime.
- Logistics firms get better operational visibility and data-driven coordination.
- Brokers save time with digital load matching and reduced paperwork.
While useful in many scenarios, digital platforms remain best suited to standard truckload freight and one-off moves. Complex logistics still rely on the human insight, adaptability, and service that traditional brokers provide.
Conclusion
Digital freight brokerage has introduced the “Uber effect” to logistics, making it faster and easier for shippers and drivers to connect through app-based matching and real-time visibility. These tools have helped improve efficiency and predictability for certain types of freight, especially straightforward, short-haul, or transactional moves.
However, as the industry has learned, technology alone cannot solve every logistics challenge. Real-world freight management still depends on the expertise, relationships, and adaptability that human brokers bring to the table. For most organizations, the most effective model blends advanced digital tools with experienced oversight to deliver reliability and responsive service.
As logistics continues to evolve, success will depend on finding the right balance between automation and human insight. To explore how technology and hands-on expertise can work together to strengthen your supply chain, contact the Sheer team today.
Sources
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