There are more alternatives than ever for helping shippers get their freight moving, from working directly with a carrier to using online load boards. However, some shippers may be unaware of the benefits of hiring one of the most tried and true of these options, the freight broker.
What exactly is a freight broker?
A freight broker is a registered real estate broker who uses its network of carriers to convey shippers’ freight, among other things. This “much more” includes assisting shippers in lowering costs, moving freight quickly, and eliminating the burdens of traffic management and carrier sourcing from its operations.
As a result, the phrase “freight broker” today seems a little archaic. We are third-party logistics providers (3PLs) who do much more for shippers than merely move merchandise from point A to point B. Our services might comprise everything from drayage and customs formalities to factory logistics and just-in-time delivery. Not to mention the human aspect of communication and cost-cutting negotiations.
What benefits do freight brokers offer shippers?
Reduce freight costs. Most freight 3PLs have extensive carrier networks. A 3PL can use its network’s scale to locate the best carrier for a shipper’s cargo based on experience, equipment, and pricing. 3PLs can effectively “compare shop” on behalf of their shipping clients.
Move freight quickly. Again, the scale of a 3PL’s carrier network offers greater flexibility in meeting shippers’ timetables. Communication is therefore essential to smooth out schedules that work for both shippers and destination facilities. We can also account for tank washing and other items.
Remove traffic management requirements. When a shipper schedules a load with a carrier, the shipper must often devote internal resources to follow that cargo as well as manage the timeline and stakeholder expectations. Brokers can execute these tasks on behalf of shippers.
Provide multiple modes of transportation. Some 3PLs that specialize in bulk freight shipping, such as Get Loaded and Rolling, can manage transportation across almost all trucking modes, such as liquid and dry bulk, dry van, and LTL, thereby providing shippers with a ‘one-stop-shop’ for their transportation needs.
Keep track of carrier information. For shippers that go it alone and engage with multiple carriers directly, keeping the carriers’ license, insurance, and regulatory compliance information can be time-consuming. Some 3PLs have a dedicated team tasked with keeping these records up to date and ensuring that the broker’s TMS system assigns shippers’ loads ONLY to carriers who are up to date and qualified to handle them.
Can a shipper use a freight broker AND hire carriers directly? Is it either one or the other?
Shippers can and do use carriers as well as freight brokers. A shipper’s comfort level with a specific carrier in a specific lane is common (s). However, as capacity is required for new channels, shippers might rely on brokers to source it or simply investigate choices in these new lanes. Some shippers may prefer to supplement existing carrier arrangements with broker-based loads inside the same channel in order to avoid becoming overly reliant on a single carrier.
Other times, a shipper may have a new product that is outside of the wheelhouse of its regular carrier, in which case a brokerage can step in and handle transportation for that product.
What is some value adds that a freight brokerage provides to shippers?
Emergency shipping is a significant value addition provided by freight brokers. When dealing with a single carrier, you get what you get. You’re out of luck if you have an emergency and all of that carrier’s trucks and drivers are booked. A 3PL with a big network, on the other hand, can bring trucks in from close and far to meet your needs.
What are some common misconceptions about freight brokerages among shippers?
The admission requirements for becoming a freight broker are relatively minimal. It is critical to work with a broker who has a track record of success and longevity that creates trust. Since 2010, Get Loaded and Rolling, has been a valued partner to shippers all over North America.
What about online freight markets? Do they take the place of the broker?
The broker position may not be required for some freight where the broker brings little value. However, anyone who has ever scheduled a shipment, particularly a bulk or hazardous material cargo, understands that there is frequently tremendous expertise and back-and-forth contact that goes into making the shipment effective. As a result, shippers require the assistance of actual specialists to guide them through the procedure. That experience and support will simply not be found in a load board or a computer algorithm, especially if the project encounters a hitch along the way.
How can freight brokers help shippers during the COVID-19 crisis?
By arriving on time and prepared to work. Because transportation is critical to the functioning of our economy, the team at Get Loaded and Rolling is on hand and ready to assist our shipping customers and carrier network. Since the outbreak, we’ve been following CDC rules for safety, cleanliness, and social distancing, and we’ve done everything we can to keep our staff safe and supply chains flowing. We will be monitoring and following guidelines as things start to ease up as well.
Learn more about 3PLs and freight brokers
Whether you’ve been working with freight brokers for years or are just curious about the benefits they may bring to your supply chain, call Get Loaded and Rolling to see how its experienced 3PL services can boost your operations. Get Loaded and Rolling offers years of liquid, dry bulk, and dry van experience and has the skills and carrier network to assist you to streamline your shipping operations. Contact us today to learn more.
If you’re interested in learning more about shipping with Get Loaded and Rolling, now is the best time to get started. Sign up with Get Loaded and Rolling today.
