What Does a Freight Brokerage Do and How Can They Help My Trucking Company?
Reliable transportation of cargo is important. With so many options available for moving a shipment, finding the best solution for your business can be difficult, this is where freight brokerages come in to the conversation.
In this article, we’ll cover what a freight brokerage is, what its duties and responsibilities are and leave you with a better understanding of freight brokerages as a whole.
What Does a Freight Brokerage Do?
A freight brokerage serves as the middle man between the shipper and the carrier. Freight brokers are capable of providing the truck and trailer capacity each shipper needs to get their freight to its final destination.
Freight Brokering is all about relationships. Shippers rely on brokerages to move shipments. This process is convenient for shippers, as it saves them the time coordinating with carriers directly. Any shipment that is routed through a freight brokerage is overseen by that broker from beginning to end.
Freight Brokerage Duties
There are a wide range of services provided by freight brokerages, but their core duties are relatively consistent. These duties are:
- Vet and select reliable carrier partners
- Managing the logistics of each shipment
Selecting Reliable Carriers
The job of a freight brokerage starts with vetting carriers. There are some questions that should be answered before they assign freight of any kind.
- Do they have the appropriate authority?
- Do they meet insurance requirements?
- What are their areas of expertise?
- Does their track record indicate reliability?
Note: Not all freight brokerages or carriers are high quality and dependable. Carefully vetting carriers is important when setting up a solid supply chain.
Shipment Logistics
Planning the shipping process in its entirety is the key function of a brokerage. This includes everything from arranging pickup appointments, transit updates, arranging recovery options when something goes wrong, working alongside shippers to arrange deliveries and helping their customers manage costs and supply chain.
Whether the freight needs to be shipped overseas or across the country, a freight broker’s job is to find and oversee the best possible way to get freight to its destination.
Freight Brokerage Partnerships
As soon as you decide to work with a freight brokerage, their job begins. They go out and find the best fit for your specific freight. Their main job is to ensure that you feel comfortable every step of the way of the partnership. A good freight brokerage will work to achieve your deadlines and will operate in a transparent manner.
Are Freight Brokerages The Right Fit for Your Company?
If you are looking for a partner to help with your shipping needs, a freight broker may be vital for your operation to succeed. The expertise and insights provided to customers can prove invaluable, especially if you are running into supply chain issues. A freight brokerage might not be the right solution for every business however. The right brokerage can make a worthy addition to your transportation network, as long as your needs align with their capabilities.
Basic Steps When Choosing a Freight Brokerage
To ensure the best possible experience and fit, here are five things to focus on when choosing a brokerage:
- The freight broker’s size – Freight brokerages vary in size, capacity and capability.
- The freight broker’s communication practices – It’s important that you feel that your concerns are heard and your goals shared.
- The freight broker’s access to capacity – If your shipping needs are not met because of the size and capabilities of a certain brokerage, this can send ripples of disruption along your supply chain.
- The freight broker’s reliability – When a freight brokerage says that it can ship your load for a certain price it should always be able to.
- The freight broker’s ability to responsibly follow through – If something unplanned happens during transit, your freight brokerage will figure it out for you.
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