Understanding What a Freight Broker Does
If you’re a manufacturer, distributor, or freight carrier, you’ve likely heard the term “freight broker” more than once before. These individuals are crucial in connecting goods with professional shipping services – let’s take a look at the role they play in modern distribution:
What exactly is a freight broker?
A freight broker is an intermediary between shippers and motor carriers. Their role is to match one party with goods to transport with another party that has the capacity to move that freight safely and efficiently, and they receive commission for these matchmaking services.
Professional brokers are knowledgeable about the shipping industry and relevant technology, and must be licensed by the Federal Motor Carrier Safety Administration. Their daily tasks will range from placing prospective calls to shippers to determine who has incoming freight; to finding space in outgoing trucks/trains/other vehicles; to negotiating rates that are amenable to both carriers and shippers.
What are the advantages of freight brokering services?
Not all cargo is the same – far from it – and it’s very important to understand both the demands of the shipper and the capabilities of the overland carrier. It’s an expensive time-intensive process for shippers to carry out this research and to maintain close working relationships with individual moving companies over months or years – to make no mention of the fact that some shippers are full-time distributors who move wildly different goods at different times, each with different requirements. Many will elect the more economical option of working with a professional who can handle these relationship demands on a full-time basis, so that they may focus more fully on manufacturing and/or distribution.
Get in touch with the transportation professionals at Bonded Service for more information on freight brokering and other topics.