The Freight Brokerage is an important factor in driving the transportation business forward. For carriers looking to fill their trucks, partnering with it could be extremely rewarding.As a company who knows the need for their services, a freight broker offers you certain benefits for your business.
What is a Freight Broker?
A freight broker is an individual or company that acts as a link between a shipper of goods to transport and a motor carrier who is authorized to do so. They neither own the goods or transport it, but play a crucial role in the movement of the goods and cargo. Freight brokers help in finding quality carriers at low prices and in turn, help the business of carriers and make sure that they get paid accordingly.
Responsibilities of a Freight Broker
-Troubleshooting problems is an essential skill for a freight broker to have. Need to make sure that all shipments are safely transported from the shipper to the shipper to the receiver, keeping in mind all the regulations implemented by the government.
-Working together with shippers, carriers and dispatchers to develop and maintain schedules and assist carriers in preparing for loads. Not only but also, maintaining a good relationship with and between them is crucial for the smooth functioning through the process.
-Preparing the documentation and reports for the transport process of the cargo.
-Communicating with clients and tracking and report shipping status, including responding to the different queries of the customers.
-They provide customers with shipping quotes and help them choose the best, short-term carrier service for them.
Advantages of using a Freight Broker
- Shipping Rates- One of the benefits of working with a licensed and trained freight broker is the ability they have to get the best possible shipping rates. And it works for both shippers and carriers. Brokers have an in-depth knowledge of the industry, as well as the relationships with other parties involved in the shipping process. Let them work their magic through their business connections to help get you the best possible rates.
- Efficiency -Since moving things in an efficient and cost-effective manner is what freight brokers do every day, it stands to reason that they’ll be best equipped to handle your needs while you focus on growing your business and keeping your customers happy.
- Time Saving- Freight brokers have internal technology that ties into multiple freight load boards and other industry touchpoints that allow them to quickly access capacity at the best rate at the time of shipment tender. Helps carriers handle an urgent pickup or a problem covering lanes.
- Saves Shipper’s money- When using their services, shippers won’t be spending money on invoices, audits and training. Utilizing the services of a freight broker, it can reduce the investment in equipment, buildings and computer systems shippers may have had to buy if shipping on their own.
- Experience- A core carrier base gives 3PLs an advantage that’s hard to beat. An experienced freight broker will have long-term relationships with carriers you’ll never find on your own. Relationships built on trust and reliability.
How to choose the right Freight Broker?
Make sure the company is Licensed
Once you’ve found a freight broker through your search engine results, visit their website and verify that they are licensed to provide freight broker services by the FMCSA. Beware of companies presenting themselves as freight brokers, but not holding the required licensing. Licensing involves a number of strict criteria, including bonding and insurance requirements. Insurance requirements vary but cover things like loss and damage or property damage.
Offers a wide range of services
A knowledgeable freight broker will be able to find an amazing intermodal option for you which will fit all your needs and save money. Such as, giving you access to various modes of transportation, being able to provide good service and competitive pricing for both, full truckload and LTL and more. Brokers with multiple modal options can back up shortages in one mode with capacity in another.
Run a credit check
Freight brokers should be financially solvent and able to pay their carriers. Find out how prompt they are in paying vendors. Are they profitable? Are there any liens or legal judgments against them? Stay away from brokers with financial issues.
Integrity and reputation are important for any company, especially in the transport business. Check out how long they have been in business. A company that has successfully carried out different operations for a long period of time is more likely to be trustworthy. Align yourself with a successful, experienced broker.
For shippers: Carrier Compliance
Ask your broker how they qualify their carriers. Remember those carriers will soon be your carriers.
Questions to ask before choosing the broker:
- How many approved and active (the key is active and what is considered active) is under contract?
- How are carriers approved ?
- How are changes in a carrier’s profile evaluated everyday, week and quarter?
- Financial Strength
- Operating Authority
- What is the policy for delisting carriers to be used because of performance or failing legal requirements.
As a carrier, Matrix, Inc knows the importance of working with an experienced freight broker that can meet your specific needs. It can make a world of difference! And we believe that brokers feel the same about the carriers. If you’re a broker/shipper interested in partnering with Matrix, take a look at all the ways in which you will instantly benefit from choosing to partner with a trusted and industry leading transportation provider like us.