FREIGHT BROKERS

Many carriers have neither the experience nor the time to choose a good operator (forwarder). In this case, the cargo to be transported is usually of high value and may include fragile items, or the transportation process is subject to tight deadlines. In this case, they should trust the best services of a freight broker and the best freight forwarder. A freight broker helps shippers find qualified carriers.

WHAT IS A FREIGHT BROKER?

In the trucking industry, freight brokers handle transactions between shippers and carriers at all stages of freight transportation.

At the same time, freight brokers make it easy to find reliable carriers with proven reliability. In most cases carriers deliver goods on time, but there are risks that are difficult to pinpoint.

Freight brokers allow carriers to increase their income by providing cargo for transportation. However, a freight broker’s function is not limited to connecting carriers and shippers. His responsibilities include communicating and protecting the interests of both parties, as well as monitoring cargo and verifying its departure and delivery.

FREIGHT BROKER SITES TO FIND FREIGHT AND CARRIERS

In search of the best offers, brokers carefully analyze the service provider’s advertisements on specialized freight broker sites. As a result, they can screen out low-quality freight carriers and choose competent ones among them. In fact, ground transport accounts for 66% of all cargo deliveries. The most common of the many ways that carriers, shippers and brokers use to secure and improve the quality of freight deliveries are message boards. There are about a hundred message boards on the Internet, some of which do not require payment, but most of which, of course, are not free.  Brokers carefully research the most visited and reliable sites. On bulletin boards, brokers and freight forwarders check the freight offered and the possible modes of transportation and, like a bulletin board, order freight that fits the given characteristics.

Brokers in the shipping industry serve a critical function as an intermediary between shippers and carriers. In addition to acting as an intermediary, brokers are also involved in cargo monitoring, as they maintain strict records of shipments and cargoes, as well as other additional information. In addition, brokers are responsible for the legal aspects of shipping, supported by industry experts and consultants.

FREIGHT BROKERS AND FREIGHT FORWARDERS

Freight brokers and freight forwarders, as well as logistics freight brokers and providers (3PLs), are different, even though they have some things in common. An individual broker can act as the sole point of contact in their transactions. The broker sells, negotiates with the trucking company, and supervises delivery and routing. In addition, the freight broker provides supply chain consulting support to optimize product delivery.

The freight broker earns money on the difference in the price of transportation. This difference earns him income. Freight brokers must find a motor carrier. One reliable method is message boards. Using special thematic message boards, freight brokers quickly find competent professionals who are interested in transporting cargo by publishing ads with information about the goods and technical nuances. Time is money and in this regard, the more cargo he can transport, the more he can earn.

Freight brokers contribute to the reduction of liability for carriers and shippers. Contrary to the ups and downs of the industry, there is something shippers and carriers need to be sure of: the quality of service and the reliability of their shipping partners. Sometimes dishonest brokers don’t pay drivers’ wages for months at a time while paying other expenses. As mentioned above, hiring a reliable broker is one possible way to make sure that only quality carriers will work with your freight.

FREIGHT BROKERS ARE RESPONSIBLE FOR:

• Regulation of the entire mechanism of transportation of goods (e.g., from warehouse to store);
• Communication with the customer and the service provider;
• Coordination of tariffs and agreements between the carrier and the businesses;

FREIGHT AGENTS

It is imperative to find freight broker agents who are trustworthy. As with Load Boards, there are many freight agents or independent logistics providers. Treat your choice of freight agent with caution: there are those who advertise themselves as «well-known telemarketing salesmen» with no experience or knowledge of the trucking industry, and yet try their hand at the industry. Nevertheless, reputable freight agents are in the business of finding proven shippers and carriers focused on seamless cooperation.

Logistics and transportation is a volatile industry. It takes a lot of effort to find a quality logistics freight broker who can provide high-quality one-time services or maintain this property on a regular basis. And the easiest method of finding a decent carrier is through a broker.

Brokers have connections with reliable carriers for shippers. Although vetting conditions may vary depending on each individual carrier, it is usually necessary for the broker to prove a successful track record and no complaints about deals that have already been made.

FAQ

Q: Who is a freight broker?

A: A freight broker is a transportation brokerage company that serves as an intermediary between transportation companies and shippers.

Q: What does a freight broker do?

A: The broker’s job is not only to find trusted service providers, but also to ensure the proper quality of shipments, including route planning as well as the distribution of types of goods and shipments among carriers.

Q: Who is a freight agent?

A: Freight agents, like brokers, are an intermediary between shippers and companies that help shippers find the best service provider. Unlike a broker, an agent may not be facilitating the service, but only has to find a reliable carrier.

Q: What type of insurance does a freight broker provide?

A: A freight broker may provide insurance for freight operations, and each broker determines it individually based on the number of freight commissions and other cost factors for such services.