As a trucking company owner or operator, it is important to always keep your eyes on any trend that may affect your bottom line. Over the last 10 years, technological advances such as electronic logging devices, or ELDs installed in trucks have lowered the average delivery time significantly.
However, along with shorter delivery times comes the federal Hours of Service (HOS) and rising fuel prices forcing trucking company owners and operators to engage in strategic planning to maximize profits.
Right away you can see the importance of establishing alternative measures to secure more consistent freight and gain higher exposure to more customers. This is where a freight broker comes in to help you maintain freight lanes for your trucking company. Read on to learn why trucking company owners and operators want to work with freight brokers today.
Who is a Freight Broker?
Simply put, a freight broker acts as a middle man between a shipper and a freight service provider, in this case, your trucking company. The freight broker helps the carriers find people looking to ship their products and helps shippers to find carriers who are perfectly suited to transport their goods.
Freight brokers can specialize in specific types of freight, such as hauling equipment, transporting oversized tankers, automobiles, or other types of goods. With over 70% of freight shipped in America transported via trucks, this role cannot be overlooked by any trucking company looking to stay in business.
Primarily because it is virtually impossible to reach a large chunk of shippers directly and stay in business as a freight company, the shippers of America today are connecting to EDI (Electronic Distribution Interchange) Systems that connect their supply demands to an online network of logistics options within one main platform.
These EDI Systems streamline the freight process but are often saddled with different shipping rates and requirements which can be confusing to both shippers and freight providers. A freight broker can help you overcome these obstacles and present you with more technological solutions that translate into real freight savings.
Why Trucking Companies Work with Freight Brokers
A professional freight broker can provide your trucking company with the following services:
1. A personal relationship with carriers
To succeed in their field, freight brokers are required to have an extensive network of contacts in almost every mode of commercial transportation all around the world. This saves shippers from having to go through the trouble of researching different rates across multiple carriers.
Instead, shippers can go through a single source for all the information they need. Also, freight brokers usually have access to the best prices, logistical solutions, and can ship customers’ products in a hurry if necessary.
2. Established customer network
Any freight broker worth their salt will have an established network within different industries. He or she will have the ability to efficiently manage your freight needs and make logical business forecasts that ensure that your trucking equipment consistently remains in operation.
3. Access to the latest technology
Freight brokers are knowledgeable about the latest logistics technology, putting them in the best position to engage with both carriers and shippers. They remain up to date on the latest shipment tracking and processing technology offered by multiple carriers. This means that shippers don’t have to visit multiple carrier websites to locate their cargo.
4. Flexible shipping modes and capacity
Having a freight broker means shippers don’t have to worry about having to scale up their business during the holidays or scale down during off-peak periods. Freight brokers can work with different carriers to provide more flexibility with shipping without restricting shippers to a specific carrier or rate.
5. Stay up to date
It is the job of your freight broker to keep you and your company’s equipment up-to-date with safety and maintenance regulations. They are tasked with ensuring you are compliant with any new mandates or laws that affect your trucking company. This is important to make sure you are always prepared for compliance checks by the State.
6. Better customer service
It is often best to connect customers with the most knowledgeable person to answer questions about shipping times, damages, prices, or other hiccups that may occur. Most brokers will also handle the legal side of transportation including inventory management, invoicing, and documentation freeing you to focus on other parts of your business.
7. Money-saving
Freight brokers can provide trucking companies with more business than they would be able to get on their own. They usually offer more carrier options for all modes of transportation than a shipper would be able to find on their own, making them a favorite contact point for most shippers.
