Articles

What is a Freight Broker and when do you need one?

by Matt Corby, 6 June 2022

There are so many moving parts in transport management, aren’t there? And there are just as many ways to waste time, money, and incur damage.

One thing’s clear: not all freight management systems are created equal. Successful companies rely on a freight broker to handle their shipping logistics, especially during the holidays.

They understand that as your business grows, you usually don't have the time or staff to maintain your high standards. And if too much growth isn’t your problem, but rather not enough? Then freight carriers can also rely on freight brokers to ensure they have consistent access to freight.

Whichever side of the coin you're on, a freight broker can be a game-changer for your business. 

Not using a freight broker yet? It's time to consider the savings, convenience, and other benefits this type of partnership can offer your business. Let’s take a look at why.

What is a Freight Broker? 

With thousands of different shipping companies to choose from, managing your company's freight can be a headache. A freight broker helps by serving as an intermediary between a shipper and a carrier.

They function as a middle man who facilitates communication between the person who has freight to ship and the person who can ship the freight.

The freight broker makes sure the handoff between shippers and carriers goes as smoothly as possible. That way everything arrives safely and on time.

Using a freight broker eliminates the need for negotiating, planning routes, and tracking freight. It turns a very complicated and messy process into something much more manageable.

A freight broker can also help a carrier optimise their routes and increase their earnings. Freight brokers play a major role in improving delivery and supply chain efficiency for both carriers and shippers.

Benefits of freight brokerage partnerships

As you can see, there are benefits to using freight brokerage whether your company ships or carries freight. At the end of the day, using a freight broker will save you time, money, and create a beneficial partnership.

Savings

Partnering with a reliable freight broker is a smart way to save you both time and money. If you're looking for a way to make managing your business easier, this one is life changing.

The biggest savings benefits stem from the broker's ability to share their experience and carrier options while saving you the hassle of navigating a chaotic shipping industry.

Keep in mind that one of the most important things a freight broker does is monitor the transportation market. That means they have expert awareness of price volatility and can get you the best possible price for a shipment.

They also puts a significant amount of effort into maintaining relationships with the carriers in their network. This familiarity also helps ensure they get you the best possible price for shipping.

Convenience

One of the best parts about working with a freight broker is the convenience you get from partnering with a reliable resource in the transport management industry.

You don't have the time to sit down and evaluate different carrier options for your shipment, but a freight broker does. They can advocate on your behalf and make sure you end up working with carriers you trust.

When you use the help of a large freight brokerage, you have the benefit of their in-depth knowledge of the industry. You also have the benefit of their ability to leverage a broad network of potential carriers.

A freight broker vets the carriers in their network for reliability, track record, and areas of expertise. They also make sure their carriers have the correct insurance and meet all permit requirements.

In addition to vetting carriers and planning shipping routes, your broker may offer the ability to track your shipment online. Having this capability can give you peace of mind knowing your shipment is secure.

Having your broker's network of carriers at your disposal will not only add convenience to your life, it will also improve the quality of your business.

You’ll find yourself with more time to spend on all the other things you need to do. 

Partnership

Good business is contingent on solid relationships. Shipping companies and freight brokerages take their relationships with each other very seriously. For shippers, brokers, and carriers, the goal is always mutually beneficial.

That means relationships between this triad are about more than maintaining a bottom line. A good broker will prioritise the goals of their clients and fulfil the duties of their role.

Committing to a long-term partnership with a freight brokerage is in your best interest. This enables the broker to get to know your company in-depth and provide you with consistent and reliable service.

Oversight

A freight brokerage navigates shipments every day. They know all of the ins and outs of the industry and can do what it takes to provide a seamless experience for their customers.

That  means you can trust your freight broker to reliably fill out the proper forms, schedule loads on time, and solve problems when something goes wrong. Their oversight ensures you avoid any unnecessary challenges with your shipment.

Why hire a freight broker?

There are a lot of good reasons why so many companies enjoy working with a freight broker. But here are our top four reasons why you should consider it.

  • A freight broker can help you find reliable freight carriers while weeding out those that are not right for your business.
  • A freight broker facilitates communication between you and the person transporting your shipment.
  • Freight brokers track and communicate the status of your shipments so you don't have to.
  • Freight brokerages have access to transportation management systems and delivery management software.

Partnering with a freight broker ensures you get the benefits of all their expertise within the industry. Make sure you find the right broker for your company.

Find a freight broker you can trust

When you hire a freight broker, you get the peace of mind of knowing that an essential part of your business is getting the expert handling it requires. You'll also gain the benefit of a close and lucrative relationship.To find out whether TransVirtual is the right software for your freight brokerage, set up a free demo today.

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