How A Freight Brokerage Works

When you buy or sell a car, the price includes the cost of shipping it to your local dealership. In a world with fewer dealers and more direct-to-consumer sales, it’s important for businesses to find new ways of cutting costs and streamlining operations. If you’re in the freight business, considering a freight broker as part of your logistics strategy to cut costs and streamline shipping processes is a logical step. A freight broker connects shippers with shipping companies, which means you can book shipments through them instead of directly with carriers.

What Does A Freight Broker Do?

A freight broker is a company that provides transportation services for shippers. These companies match shippers with the best carriers for their shipment based on service and price. A freight brokerage can help if you have a small or occasional volume of shipments. If you do high-volume shipments, it’s best to work with a freight forwarder. Freight brokers act as middlemen between the shipper and the carrier. Therefore, they’ll usually charge a commission fee on top of the shipping rate. The main benefit of working with a broker is that you can book shipments faster, which is ideal for sudden surges in demand.

Why You Should Use a Freight Broker

Freight brokers are ideal for businesses that want to outsource the heavy lifting involved with shipping. Working with a freight brokerage takes the guesswork out of the shipping process. You can rely on brokers to find the best rates, select the appropriate carrier, and provide a seamless pickup experience. Here are a few reasons why you should consider adding a freight broker to your logistics strategy:

  • Selecting the right carrier isn’t easy, which is why outsourcing to a freight broker can be beneficial. These companies have access to a large network of carriers and can quickly identify the most reliable choice for your shipment.
  • Finding the right shipping rate is a challenge that most businesses don’t have the time or resources to tackle. A freight broker can source the best rates based on your specific shipment.
  • Some brokers offer a pickup and delivery service that can help reduce your business’s transportation carbon footprint.

Freight brokers can help you streamline your shipping process and save time and money. These companies specialize in sourcing the best rates and providing a smooth pickup experience for your shippers. And unlike freight forwarders, freight brokers are often cost-effective for businesses with an occasional volume of shipments.

Express Logistics Systems Intl