5 Ways Your Freight Broker Lowers Transportation Costs

01 January 2020       Blog

Getting a trustworthy freight broker takes time since there is the connotation that they are an expensive and an unnecessary part of the shipping process. However, they have the experience and network as well as the resources necessary to get your shipments where they need to be at the right time. It is true that they make their living connecting shippers and the carriers, but the truth of the matter is that an experienced and professional freight broker will handle the shipping process more efficiently than when you were dealing with the carriers directly.

There are various ways that a freight broker can ease your shipping costs given the logistics involved. In this guide, we look at five ways that freight broker can lower your transportation costs.

Strong Networks with Reliable Carriers

Freight brokers spend their days connecting shippers to carriers and over the time that they have been in business, they have built strong relationships in the shipping industry. They have at their disposal a network of reliable carriers. The transportation industry is heavily regulated, complex, and some carriers cut corners to make more money. This can result in you losing your goods, or the goods being held in ransom until you pay more money to get the goods delivered. A freight broker will suggest the most reliable and cheapest option and ensure that the goods arrive at their destination vis-à-vis any problems that might arise.

Use Advanced Logistics Technology

Freight brokers invest in the best technology fit for the complex shipping business. The technology allows them to contact different carriers and negotiate for better rates as well as automate the entire process from the time your goods leave the warehouse to their destination. The technology in place allows the freight broker to have complete visibility of your goods while in transit including fuel stops, current weather patterns, traffic, and more to ensure that the goods arrive on time with no damage to your goods.

Relieves Back-Office Overhead

You would need copious amounts of time and resources to go over the freight quotations, and while you might think it is better to cut out the freight broker, it will only increase your back-office overhead. A lot goes into shipping logistics including quote evaluation, transit times, costs, selecting the best carrier, arranging pick-up, monitoring the transit, delivery, and ensuring that the carriers are paid in good time. A freight broker has the proper technology, and experience to carry out the entire process, and it will not only lower your transportation costs, but it will also expedite faster service with professionalism. 

Mode Shifting

There are different shipping modes, this concept might be lost to you, and a carrier company can take advantage of this fact. Shipping modes include truckload (TL), less-than-truckload (LTL), intermodal, air shipments, and partial truckload. When you enlist the services of a freight broker, they will evaluate the size of your goods and advice you accordingly as to the best mode to use. Dealing with carriers directly can give them the leeway to push you to pick the most expensive mode not usually suitable for the volume of your goods.

Shipper of Choice

Carriers too are wary of shippers, and their biggest concern is whether they will get timely payments for their services. A freight broker can recommend you as a shipper of choice, and this means that the carriers will reserve their best equipment for your shipping needs. This will go a long way in reducing the transportation costs compared to when you have less than efficient transportation equipment that will delay the delivery, and this could leave you at a disadvantage with your customers. 

Without a doubt, you can field quotations from carriers directly and handle the transportation logistics. However, you lack the experience and the proper technology to ensure that you get your goods to the customer on time and in the proper condition. The above tips show why you need a freight broker since he or she can help you reduce your transportation costs.