Freight brokers are intermediaries, persons or companies that serve in a liaison position between shippers and carriers. Essentially, they handle the transportation of goods so the providers do not have to. Brokers assign freight to carriers, oversee the entire shipment, ensure that the asset reach their destination, and then accommodate the carrier. All that is required is a nominal fee for their services.
Using a freight broker takes all the risk, worry, and hassle out of shipping assets. In a market saturated with thousands of carriers, transporting assets for thousands of shippers on a daily basis, finding reputable and available sources can be almost impossible. A Freight broker, or third party logistics company (3PL), match carriers to shippers alleviating stress as well as risk. By using 3PLs companies can focus more on business aspects, and less time worrying over transportation. It is prospected that one out of three major shipping companies utilize 3PLs in their business.
3PLs coordinate everything involved with the transportation of goods. They arrange movement from the company factory using domestic or international commerce. They utilize all forms of transportation whether it be by truck, train, plane, or ship. Using freight brokers reduces cost for the operating business, as they always choose the most economical and efficient form of movement possible. With unlimited connections to numerous carriers worldwide, 3PL can arrange transport that cuts down on fuel emissions, enhances the supply chain, and creates faster turnaround. This is beneficial to business in terms of overall costs, as well as profit as they can move more product. It is projected that the freight brokerage business is worth 160.2 billion dollars. 3PLs provide jobs, boost the U.S. economy, and benefit the environment. 3PLs also have a 7.5 billion dollar payroll, meaning the market is vast.
A freight broker is also a separate business unto themselves. They live and die by good customer service. 3PLs that are unreliable and undependable do not make it very long. This means that any 3PL a business uses is dedicated to ensuring the best quality possible. Fright brokers focus only on shipping, they operating within the shipping market all day. This means they have terrific resources and specialists in all means of transportation. Their expertise in the topic of freight is unparalleled. Freight brokers use updated technology, deal in high volumes of asset transportation, and broker thousands of deals daily. This means they are equipped with the best tools to proficiently facilitate, move, communicate, and track orders.
Stakeholders can be involved in every aspect of a shipment by receiving invoices and updates. 3PLs pay the carriers, negotiate fees, manage rates, optimize and analyze routes, rate carriers, and research economical solutions. Because freight brokers are an outsourced commodity, the benefit of using them is two-fold. Business get prime service from a company that is working for them, and wants repeat business in the future. Businesses also can focus more on sales, manufacture, and development as the transportation of goods is already taken care of.
Justin Bright – CEO Brighter Logistics