Equipped with the right freight broker companies, shippers can cruise through storms. The large network of carriers brokers offers to ensure that you get the best deals for your freight shipments.
However, you can’t just go out there and select the biggest brokerage, you will need to take into account several factors to choose the best-suited option for you. In this article, we delve into detailed factors that will aid your decision-making process when it comes down to choosing a freight brokerage.
Workings of a freight brokerage:
Freight brokerage acts as a middleman between shippers and carriers. They ensure that freight gets from point A to B not only on time but safe and sound too. They are responsible for planning routes, negotiating with trucking companies, and acting as custodians of the freight until it reaches the final destination.
The pros:
A good relationship:
Good business operations rely on strong partnerships. Finding a good relationship means that both partners can reach mutually beneficial goals.
A good freight brokerage is not simply good for your bottom line. When a solid partnership is achieved, the brokers are focused on achieving clients’ goals, performing their duties well, and making deliveries on time.
Having a trustworthy partner in these changing circumstances can be a game-changer for a trucking company.
A convenient solution:
A key benefit of working with a freight brokerage is having a convenient partner in the trucking industry. With thousands of shipping companies, narrowing down the best option for you will be quite difficult.
An efficient brokerage understands your needs and simply fills in where you need help. With a freight brokerage, you get access to a wide array of carriers. Carriers that they have tested for reliability, track records, fields of expertise; using their extensive knowledge is simply a convenience for both clients and carriers.
Budget-friendly:
Get into business relationships that save you time and are budget-friendly. Partnering with a freight brokerage firm will save you money. They offer free industry expertise. They help maintain relationships with carriers. They know the exact price elasticity each carrier possesses which helps them leverage the best price for you.
You enjoy a sense of flexibility:
They bring different kinds of flexibility to the table including:
- Seasonal flexibility
- Options in transportation
- Reach a wide network of carriers
The oversight they offer:
Freight brokers know the ins and outs of the whole shipping operation. This is why they deliver a seamless customer service experience to your customers. The grand oversight they offer is a huge benefit for trucking companies.
The Cons:
Although the relationship has great potential in driving you to success, finding the right fit is often difficult but not impossible.
Time-consuming operations:
Brokers finalize hundreds of deals a day. They are responsible for coordinating carriers and shipments. Manual coordinating takes up time, time which shippers spend waiting for their loads to get shipped.
Steep fees for middlemen:
Individual brokers get paid in the form of commission. So, they charge maximum fees for shippers and minimize expenses for carriers. The average fee comes at about 15-20% or higher. This means higher rates for shippers which we don’t want.
Matching the right shipper:
Whether you get the best fit for your shipment depends on the pool of carriers a freight broker holds. If he knows a wide variety of carriers, this will mean that he will be able to deliver the best truck for the job. This will include price and quality of services.
There you have it, a detailed round-up on the pros and cons of Freight broker companies.
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