Shipper

A shipper is the party that owns the freight and tenders it to a freight broker or motor carrier for transportation.

Shippers contract with brokers (or directly with carriers) for transportation services. The contract typically specifies the broker's liability cap, payment terms, claim procedures, required insurance limits, and indemnification obligations.

Larger shippers often impose minimum insurance, additional-insured, and carrier-vetting requirements on the broker via the contract.

Why this matters for freight brokers

Shipper contracts shape the broker's vetting and insurance requirements indirectly. Sophisticated shippers increasingly require documented vetting processes as a condition of tender.

Related terms

• Freight broker — A freight broker is a licensed intermediary that arranges the transportation of freight between shippers and motor carriers without taking possession of the cargo or operating the equipment.
• Motor carrier — A motor carrier is a company that operates commercial motor vehicles transporting freight or passengers, holding FMCSA operating authority and meeting federal safety, insurance, and registration requirements.
• Additional insured (endorsement) — Additional insured is an endorsement on an insurance policy that extends coverage from the named insured to a third party, typically required by contract between a shipper, broker, or carrier.