Businesses count on reliable transport. It’s no good producing the best product in the world if it never reaches its destination, or if it does so late. Of course, this is where freight companies come in, but the average business owner is faced with a huge choice of possible carriers, some of whom may be less reliable. Freight brokerage firms are the way around this issue.
Freight brokerage companies act as middle-men between the customer and the shipper. They have the contacts to identify carriers who can reliably handle the customer’s requirements. Customers have various requirements for their transport; not just in terms of delivery schedules, but sometimes also in terms of how the material should be handled. A shipper who can deliver frozen meat on time may not be the best for fresh cut-flowers. Likewise, carriers have their own issues with scheduling, staffing, and vehicle availability.
Advantages of Freight Brokerage Firms
Using such companies, a shipper can avoid having to deal with these issues. Instead, the broker arranges transport based on both the needs of the shipper and the availability of suitable transport. This reduces the amount of time the shipper has to spend on sourcing transportation, and can save money. As freight brokerage companies are specialists in their field, they can generally find ways to lower the cost of transport.
Choosing A Broker
Of course, this still leaves the shipper needing to choose from among a large number of freight brokerage firms. There are several points to consider when looking at the options.
- The broker must be licensed. In the US all freight brokerage companies must have a license from the FMCSA.
- Shippers should also want to look for a broker who is financially secure. This is a business that a shipper will be working with over a long period. While there is a large choice of such firms in the USA, there is also a constant turnover as some of them go out of business.
- Shippers also need to make sure their brokers have good contacts with the transport industry to make sure the brokerage firm will provide the best services for them. A good broker will source reliable transportation for the needs of the shipper.
In the end, like most business decisions, it comes down to trust and communication. A good freight brokerage firm may not be the cheapest, but it will be the one that the shipper feels confident working with.