Owner-Operator Vs. Broker

In the transportation industry, the terms owner-operator and broker are used commonly. Knowing the definitions of these jobs will help you better understand the logistics behind this industry.

Owner-operators are truck drivers who own their own truck, have all of the appropriate licenses and permits, and do all of the driving. They are responsible for contacting the shipper, negotiating prices and determining how the delivery will be made. Broker’s perform many of the same duties as an owner-operator.

The broker will set up all of the paperwork and contact the shipper. Then the broker’s primary job is to contact a willing driver. The broker is the mediator between the two and therefore they will be paid a certain percentage per job.

Besides the fact that the broker doesn’t do as much physical work, but does far more paperwork, the other major difference is pay. The broker does not get paid as much as the owner-operator per job; however, they are able to do many more jobs than the owner-operator during a given period of time.