What Does a Freight Broker Do?

Think of a freight broker as something of a “middleman” between two important parties – a shipper and a carrier. As a business owner, handling the logistics of shipping yourself can be an often frustrating and time-consuming affair. You’ll need to constantly communicate with multiple carriers, deal with the intricacies of different contracts, try to figure out who to call if something should unfortunately go wrong, etc.

Working with a freight broker helps to streamline this process exponentially. You’re getting access to a team of shipping professionals who already have their own network of carriers and pre-existing relationships they can draw from. The freight broker helps make sure that the transportation of critical freight goes as smoothly as possible at all points in the process, making sure that it arrives at its destination safely, on time, and in full.

Advantages of Freight Brokering

The most immediate benefit of working with a freight brokering professional comes by way of streamlined communications. Rather than dealing with multiple carriers depending on the freight you’re talking about, your business gets a single point of contact during the journey. If you have a question, you have someone you can call to get the answer. If you have a problem, you know exactly where to go to get the solution.

Note that in this scenario, communication is very much a two-way street. A freight broker helps keep business leaders informed about the status of their freight at all points, making sure they have complete visibility no matter what.

Partnering with a freight broker also helps make the logistics of the shipping process easier, as again you’re talking about a professional who has their own pre-existing network of contacts to draw from. Rather than going through the hassle of negotiating terms and conditions with a carrier, planning the most ideal routes to cut costs, tracking freight, and more, businesses can allow a freight broker to handle all this on their behalf.

Not only does this allow them to rest easy knowing that their freight is being taken care of, but it also frees up their valuable time to focus on core business processes – which is truly the biggest advantage of all.

When to Find a Freight Broker

One of the most important things to keep in mind about all this is that not all businesses automatically need a freight broker. Each organization is unique, and some may be currently shipping everything they need without an issue. In that situation, working with a freight broker might not make sense – at least not yet.

But if you find yourself increasingly worried about shipping costs and are unsure of how to manage and reduce them on your own, a freight broker can definitely help. They’re experts at optimizing your supply chain management in a way that cuts costs without sacrificing important elements like quality of service or security in the process.

Another major sign that the time is right to find a freight broker has to do with issues resulting from scalability. Especially in the early days of a small business, it’s entirely possible that you are able to manage everything without a problem. But as your organization continues to grow, your freight needs can evolve rapidly – to the point where you may be having a hard time keeping up.

You’re dealing with more than just a “minor inconvenience” at that point – it may literally be the thing that prevents you from scaling in the way that you need. In that scenario, a freight broker can step in and make sure that your supply chain is taken care of so that you can grow without being artificially limited in any way.

Finally, one of the most obvious signs that the time is right to work with a freight broker has to do with a situation where your freight may be getting to its destination, but not on your desired schedule.
Again, freight that isn’t delivered on time is more than a “small problem.” Immediately, it can cause the type of reputational damage to your business that you might have a difficult time recovering from. In a larger sense, it means that you’re dealing with unexpected delays and inefficient routes – problems that are costing you money and that will only get worse if you let them.

Freight brokers have the insight and expertise needed to mitigate risk from all these factors and more. Yes, sometimes unexpected delays do happen, but a freight broker can minimize them as much as humanly possible. They can also call upon their time-honored safety procedures to help minimize damage to your freight, making sure that all items get into the hands of waiting clients and customers without issue.

How to Choose a Freight Broker

By far, the number one thing to look for in a freight broker has to do with not just experience, but experience with the specific kind of business you’re running. Not all industries are created equally, and the shipping needs of someone in the food and beverage field might vary wildly from a company in healthcare. You need a freight broker that understands the finer points of your field so that they can come up with the right strategy for your long-term goals.

You’ll also want to pay close attention to the carrier partnerships that a freight broker brings with them. Again, it isn’t just about whether you trust the freight broker – you also need to trust the carrier partners that they have deemed reliable and safe. If a chain is only as strong as its weakest link, a freight broker is only as strong as its weakest carrier. You’ll at least want to know what you’re dealing with before you make any type of decision to that end.

Beyond that, a freight broker should be licensed, bonded, and insured. They need to be registered with the Federal Motor Carrier Safety Administration, all so that you can rest easy knowing that even in the event of an issue, someone will be by your side every step of the way.
If you’d like to find out more information about what a freight broker is and how one might benefit your business, or if you have any additional questions that you’d like to discuss in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.