Freight brokers often get a bad rap in the industry. Maybe you’ve heard stories of companies getting ripped off or being treated unprofessionally by brokerage firms. Perhaps you feel you’ve personally been burned. Well we are here to tell you that this isn’t how quality freight brokerage firms operate.
In this blog post, we lay it all out on the line and tackle any misconceptions about what it’s like to work with a reputable freight broker head-on.
Myth #1: Services are More Expensive
Nothing in this world is free and working with a freight broker is no exception. However, reputable firms are able to get you a lower price that far outweighs the broker fee. Working with a freight broker is an investment that pays for itself and more.
How are they able to do this? There are 3 main reasons freight brokers are able to get you lower rates.
- Volume – Freight brokers work with a plethora of customers and are able to aggregate and leverage greater shipment volumes when negotiating with carriers.
- Relationships – Brokers are experts in relationships and work hard to build and maintain strong carrier partnerships. As a result of these long-term partnerships, they are more likely to receive better rates when negotiating.
- Knowledge and expertise – Freight brokers are the experts in freight transportation. A freight broker knows how to leverage the myriad of factors that come into play when transporting freight in order to receive the best rate.
Simply put, quality brokerage firms work to leverage their expertise, volume and network to negotiate lower prices on your behalf.
If you are working with a firm and feel like you aren’t getting a good deal, try us out on your next load.
Myth #2: Brokers Charge Whatever They Want
Many people assume that when a freight broker negotiates freight rates, they just charge whatever they feel like in the moment.
In reality, freight brokers take several factors into account when agreeing upon a fair rate. Similar to how you need the right amount of each ingredient when baking a cake, a freight broker must balance a myriad of factors when negotiating. If you were to throw in a bunch of ingredients without measuring precisely, then the cake would not be good. That would be equivalent to brokers “charging whatever they want” and is far from what actually happens.
Freight brokers juggle several considerations when negotiating. Below are just some of the factors that go into the negotiating mix:
- Freight factors (i.e., weight, equipment required, dimensions, commodity type, miles, stackability, loading method etc.)
- Market factors (i.e., region, seasonality, weather, tolls, tight vs loose market etc.)
- Customer factors (i.e., pick-up or delivery appointments, priority, speed of delivery, etc.)
- Carrier factors (i.e., deadhead miles, number of drivers, days on the road, back haul opportunities, fuel costs, etc.)
While balancing these numerous factors at once, a skilled broker can find the sweet spot and negotiate a fair rate for both the customer and carrier. In many ways, freight negotiation is much like an art form. If your broker is charging whatever they want, you should find yourself a new broker ASAP.
Myth #3: Brokers Use Unreliable Carriers
Sometimes shippers are hesitant to work with a freight broker because they worry their freight will be left in the hands of an unreliable carrier. However, because brokers take on the responsibility for any mishaps that arise during the transportation of freight, most brokers only work with carriers they have vetted thoroughly.
If you are worried about how your freight broker selects carriers to work with, ask them about their process. Be open about your concerns and talk through it with them. It’s important for your broker that your shipment gets to its destination safely, too. By opening up the lines of communication, you can learn just how seriously they take their role in the supply chain.
At FSL, we only define success when both parties, shippers and carriers, are happy and successful. We understand that effective communication and trust are key to any successful partnership and we pride ourselves in being a transparent partner. We only work with reliable and vetted carriers. When you find the right partner, you can have an open dialogue with them and feel confident that your freight is in good hands.
In an effort to be transparent, we want you to know: if you are interested learning more about us or our process, contact us today.
Myth #4: They are in it for Themselves and Don’t Have Customer’s Best Interest in Mind
Maybe you’ve heard that freight brokers are in it for themselves and don’t care about what happens to your freight. If a freight broker abides by this logic, then their business will likely crash and burn fast.
The quote “don’t bite the hand that feeds you” is one that all brokers would be wise to listen to.
In simplest terms, a brokerage firm only exists to serve companies needing to move freight. If a broker burns every customer they work with, then those customers would likely go elsewhere for their transportation needs. Without customers, they have no freight and without freight, a freight broker has no business. Ensuring that the transport of freight goes smoothly is a top priority for freight brokers because this gives them the best chance at repeat business.
This pretty much weeds out any brokers that operate with an “only in it for myself” mentality.
At FSL, we understand the importance of our customer’s success for our business’ success. If you would like to work with a partner that views your business as an extension of their own, contact us today.
Myth #5: They Serve No Purpose. It’s Easier if I Just Do This Myself
Many people underestimate all the nuanced facets that goes into optimizing the transportation of freight. While you could certainly book your own freight, finding a dependable carrier, securing an optimal rate, and ensuring your product ships safely and on-time takes industry expertise and years of experience.
In fact, so much goes into freight optimization, that we’ve decided to dedicate an entirely different blog post to just this topic. Check it out here.
Conclusion
In the end, just like with any profession, there are good and bad brokers. Hopefully the information provided in this blog post can help you to discern between the two. Working with a freight broker can provide value by saving you time and money. If you’ve been jaded in the past and are looking for a reputable brokerage firm to partner with, we would love the opportunity to change your mind about what it’s like to work with a freight broker.
Our team works hard for our customers, doing the leg work to deliver shipments on-time, on-budget, with the right carrier, right equipment, and right place. At FSL Group, we believe in helping shippers Ship Smarter, and pride ourselves in creating beneficial partnerships for both our shippers and our carriers.
Looking for a brokerage partner? Great. We are ready to work with you. Request a quote today!
- Spot Freight Rates vs. Contract Rates: What’s Right for You? - June 28, 2021
- The Importance of LTL Freight Management in Your Supply Chain - May 19, 2021
- Top 10 factors to consider when selecting a high-quality freight broker - May 13, 2021
