10.2.3Segment

Domestic Freight Brokerage

Non-asset freight brokers matching domestic FTL and LTL shipments with carrier capacity.

4
Verticals

Overview

Domestic Freight Brokerage covers the brokers who arrange truckload and LTL freight within the U.S. — matching shippers' loads with carrier capacity and earning a margin on the spread. At ~$135B (the broad freight-arrangement category, domestic-dominated) it is led by C.H. Robinson (the largest), TQL, Echo Global, Coyote, and thousands of small and mid-sized brokers.

Demand and economics are highly cyclical with freight rates and capacity, with brokers thriving when rates and volatility are high (2021–22) and squeezed in down markets (the 2023–24 freight recession compressed margins severely). It is a large, fragmented, technology-enabling-but-relationship-driven market, consolidating through roll-ups and pressured by digital brokers and automation, with technology and carrier networks the key competitive assets.

Market snapshot

Market size
~$135B
Growth
~15.8%CAGR (2017–22, nominal)
Companies
~22,400
FragmentationFragmented

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 488510 (freight transportation arrangement) — domestic brokerage is the largest component; international, customs, and ocean arrangement are profiled separately. Reflects the 2021–22 freight boom.

Business model & economics

Revenue model
Truckload/LTL brokerage margin (rate spread)
Recurring revenue
Moderate — recurring shippers; spot exposure
EBITDA margin
Asset-light; highly cyclical margins
Capex intensity
Low
  • Led by C.H. Robinson, TQL, Echo, Coyote.
  • Highly cyclical; squeezed in the 2023–24 recession.
  • Technology and carrier networks the key assets.

M&A deal context

High deal activity

Who’s acquiring

Brokerage majorsPE-backed brokerage platformsDigital-freight disruptors

What’s driving deals

  • Freight-recession-driven consolidation.
  • Technology and automation investment.
  • Roll-up of fragmented brokers.

Verticals in this segment

  • 10.2.3.1Asset-Based Freight Brokers

    Brokers with owned assets supplementing brokerage operations.

  • 10.2.3.2Full Truckload Brokerage

    Brokers arranging FTL shipments between shippers and carriers.

  • 10.2.3.3LTL Freight Brokerage

    Brokers consolidating LTL freight and arranging carrier pickups.

  • 10.2.3.4Non-Asset Freight Brokers

    Brokers without owned equipment matching freight to carriers.

Find Domestic Freight Brokerage acquisition targets

Search Acquisera’s index for companies classified under Domestic Freight Brokerage (10.2.3) and build a targeted deal pipeline.

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