Reliable transportation of cargo is essential for the business’s survival. However, several options are available for shipping freight from point A to B, making it difficult for any business to find the best solution. Trucking brokerage enables shippers to access reliable shipping services by allowing trucking companies to negotiate freight hauling with other cargo providers.
Typically, freight brokers connect freight carriers with shippers by reducing complexities for shippers and providing business leads for carriers. But what exactly is trucking brokerage, and why is it important?
Integrated Solutions Group
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What is Brokerage?
A brokerage provides intermediary services by connecting buyers and sellers through a middle man. In trucking, brokerage involves a freight broker or company that serves as an intermediary between the shipper and the carrier. For example, a freight broker can help find the best trucking company to transport and deliver your cargo when looking to transport a shipment.
The freight brokerage business is about relationships, where the shipper relies on the brokerage’s network to connect with carriers. This provides convenience since shippers do not have to coordinate and select carriers directly. Instead, shipments routed through a freight broker are managed and handled by the broker until the shipment is delivered.
Duties of a Freight Brokerage
With several freight carrier services in the industry, shippers find it hard to choose a reliable trucking company. Besides, most shippers prefer working with freight brokers to save time and resources for finding a carrier. With that, here are the primary duties of a freight broker:
- Vet reliable carriers: Before freight leaves the loading dock, thorough vetting of a carrier is necessary. A freight broker helps vet different freight carriers, ensuring they meet the minimum requirements. This facilitates integrity and reliability while letting the shipper partner with high-quality carriers.
- Logistics: Besides connecting carriers and shippers, a broker also oversees cargo logistics, irrespective of the destination. It is the key function of a freight broker to plan the shipment’s journey from start to finish. Experienced freight brokerages will determine the best solution and ensure the cargo reaches its destination.
Benefits of Using Freight Brokerage
Shippers partner with freight brokers for several reasons, with finding the best trucking company being among the reasons to use freight brokerage. Other key reasons for shippers to work with freight brokers include:
- Save the time of vetting and accessing the required freight capacity
- Partnering with a freight brokerage is a cost-effective method of shipping cargo
- Freight brokerage provides scalable capacity on an erratic cost basis
- Freight brokers are knowledgeable and experienced in market trends
- Offer comprehensive carrier vetting to ensure they operate legally
- Extensive and deep carrier pool to draw on for different contract rates
- Leverage the latest technologies and resources to reduce shippers’ resources
When to Apply Freight Brokerage in Your Logistics Approach
Freight brokers provide several benefits to shippers, including trucking companies. Preferably, due to their extensive knowledge in the industry and partnership with shippers, it becomes easier to find dependable carriers. This makes brokerage one of the most critical elements in the trucking industry.
When using a freight broker in your logistics strategy, it depends on your cargo, business needs, and requirements. Most people think of freight brokers as intermediaries in freight transactions to increase costs and make money for themselves. However, freight brokers tend to simplify the process for shippers while creating new leads for carriers.
At D.M. Bowman, we can help you get more insights into transportation freight brokerage and facilitate shipping in the trucking business. For more information about freight brokerage, contact us to learn more today!
When working with DM Bowman you can rest assured that we are true to our word. We provide the best experience in the industry for customers and carriers. When we say we are going to do something we “Carry Through”.
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