Before we even start giving any type of answer to whether or not logistics companies should hire freight brokers, we should explain what a freight broker even does. For someone who is familiar with the subject, the best advice for hiring a freight broker is to check out third-party logistics companies before doing anything else. It’s an option that can take a lot of pressure off your shoulders.
What is the job of a freight broker?
A freight broker can be just one person or an entire company. They are most commonly in charge of shipping and matching the goods you are sending with a transporter. For example, a single freight broker can be in charge of goods from numerous companies. It is a very responsible job since they are in charge of a lot of valuable stuff such as:
● All sorts of equipment
● And so many other things that need to be shipped. Anything you can think off, fragile or not – it doesn’t matter.
They are transporting everything to a place of your choosing. It is like a travel agency for goods and it can go from one to the other side of the world. However, it is not all about the shipping and taking care of the goods while freighted. There is a lot of paperwork involved as well. So, if you are planning to hire a freight broker as a logistics company, you should keep in mind that those companies or individuals need to have all the possible licenses there are. So, before hiring a freight broker, make sure that they are certified. The last thing you want and need is for someone who is not licensed to handle the shipping of your cargo.
Keep your expectations high. It is a great thing to hire a freight broker because they are known for taking the cargo off your back literally and metaphorically, for a reasonable fee, of course. Successful freight companies more often than not expand their business to different parts of the world, shipping all sorts of goods. A freight broker is basically a middleman between the logistics company and the buyer.
The option of hiring 3rd party logistics companies
3rd party logistics companies are also involved in transit of goods. It sounds similar to a freight broker, right? Well, there are certain differences because if there weren’t any, then logistics companies wouldn’t have to hire freight brokers. Third-party logistics companies from Japan and other countries are doing more essential things and they are there for good, while freight brokers come and go, depending on the help that a logistics company requires at a given moment. Logistic companies are also handling the transport but they are managing the flow of those goods as well. This makes them ideal for outsourcing goods.
Third-party logistics include freight forwarder. A freight forwarder is a company that deals with transporting goods from one point to the next, and it’s up to a freight forwarder to take the goods from the manufacturer to the actual seller. For example:
● From a factory, they create clothes into a place where some boutique will sell those clothes.
● From the place where workers will create a chair or a couch to a place that will sell it.
So, it is pretty straightforward as the word itself says. From point one to point two. It is pretty similar to a work that a courier does, just with larger items or bulks of smaller items, like clothing. But there is more. Another major task that a freight forwarder does is running a depot for any goods that need to be stored. The next thing they do is that they forward the goods in a well-defined and timely manner (as per client request), while working out the shipping rates, import/export fares etc.
Similarities between a freight broker and freight forwarder
When, as a logistics company, you decide to hire a freight broker, you need to know the main differences and similarities between them and a freight forwarder. There is a difference in the assignments they do for their clients. They both play a middleman between the logistics company and the client.
A freight forwarder, as we mentioned before, also has depots where they can store the clients’ good. Another part of their work is to find the right mean of transportation for the clients’ stuff, depending on where to and what is being transported. The transport will be by plane, truck or some other mean of transportation. Also, freight forwarder may or may not deal with the paperwork but that is something that a freight broker will do as well, nowadays they are finishing that part of work online. There is a difference but it is not very noticeable.
To be a freight broker or a freight forwarder you definitely need to have a permit. If they don’t, chances are slim to none that some logistics company will hire them. Logistics companies need to do their part of checking the freight companies before doing any work with them. The conclusion is that there are a lot of beneficial sides to hiring a freight broker. The main reason is that they know how to handle every aspect of the work. And to a logistics company, this can help a lot, getting a lot off their shoulders.
Justin Bright – CEO Brighter Logistics