Freight Broker-What Is It And When Should You Use One?

A freight broker is a link between shippers and carriers. By relaying information between both parties, the broker prevents any miscommunication that could happen. They're the reason shipments move between carriers and shippers without a hitch and arrive on time, undamaged.

There are a lot of factors to consider when shipping freight, so it's easy to forget something important. Miscommunications, delays, and damaged merchandise can end up costing you time, money, and reputation.

When shippers expand their businesses and have to send more freight, they might not be able to keep up with quality standards, have sufficient staff, or enough carrier partners. If you want to be a freight carrier, you need to have access to reliable freight in order to make more money. And if you're on either end of that equation, you might need the help of a freight broker.

Worldwide logistics provided by freight brokers

Freight Broker: What Is It?

A freight broker is a link between shippers and carriers. By relaying information between both parties, the broker prevents any miscommunication that could happen. They're the reason shipments move between carriers and shippers without a hitch and arrive on time, undamaged.

Shippers use freight brokers to have a single point of contact from their starting location to their destination. This allows for easy communication and coordination during the shipping process. Working with a broker can eliminate the need to negotiate directly with carriers, plan routes, and track freight. Carriers often prefer working with brokers as well, since it allows them to optimize their routes and minimize deadhead miles, resulting in increased revenues.

As experts in the freight industry, brokers improve your supply chain by reducing delivery times and preventing damage. By collaborating with multiple shippers, these brokers are able to gain lower rates which they then pass along to their customers.

A freight broker, brokering freight

When Do You Need A Freight Broker?

Whether or not it's the right time to bring on a freight broker depends entirely on your business and industry. If you're shipping freight without any issues, now might not be the best time. If you want to streamline your shipping process, a freight broker can be especially helpful in these three scenarios.

1. Cost reduction

Many shippers are concerned about freight costs, which makes sense because their margins depend on it. One of the primary reasons shippers partner with freight brokers is to help them reduce those costs.

Freight brokers know their stuff when it comes to freight. They have the experience and connections to optimize your supply chain, finding easy wins that slash your costs—passing the savings on to you.

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Additionally, freight brokers act as consultants. If you need assistance, you can hire them on an as-needed basis rather than bringing employees in-house to manage your shipping. Revolution does this by using a team of experienced logistics experts and cloud-based computing to speed up the shipping process and save you money.

At Revolution Trucking, we operate a full-service brokerage in addition to being an asset-based carrier and 3PL with managed transportation capabilities. Contact us today and our expert staff will find the most cost-effective way to move your freight safely and on-time.

Semi-trailers being coordinated

2. Capacity

A freight broker can help you if your business is expanding too rapidly and you have difficulty coordinating shipments. If you're struggling to keep up with your logistics, a freight broker can be a lifesaver.

Seasonal businesses often need to process an enormous amount of freight in a very short window of time. A freight broker has the experience and connections to get it done quickly and efficiently.

Ensure a smooth ride as your business grows. Utilize a freight broker to prevent any bumps in the road when you're at maximum capacity. Revolution is always available to relieve you of the stress and burden of shipping freight.

3. Time and quality

If your freight doesn’t arrive on time, it can have critical repercussions for your whole supply chain since time equates to money in the shipping industry. A freight broker will work with carriers to help them plan their route so they can avoid costly delays.

Not to mention, freight brokers have practices set up so that your product arrives in the same condition as it was sent. If you're transporting something delicate or time-sensitive, a freight broker can get the job done without any trouble on your end.

Hourglass

Why do shippers stay with Revolution? Trust and reliability. We say what we do and do what we say. While we pride ourselves on not making mistakes, we don't make excuses when issues arise. We are major proponents of continuous improvement, so we do not let problems linger. Our culture of communication and transparency differentiates us from other providers in the industry.

Don't take chances when transporting time-sensitive, high-value freight. At Revolution, our experienced Operations Team handles the most complex logistics scenarios. We move your critical freight on time and on target, with no exceptions. Call us when failure is not an option.

How Do I Find The Best Freight Brokers Near Me?

It's more important to consider a freight broker company's qualifications than their location. Whether you choose someone from across the US or just down the street, use these three factors when looking for the right partner for your business needs.

Brokered freight being moved through tunnel

1. Experience

Hiring a freight broker is an important decision for any business. Make sure you choose a company with the experience and know-how to get your products where they need to go.

Throughout your research process of looking for potential brokers, consider their website's design, reviews, and social media presence. Perhaps more importantly, though, do you trust them? Your intuition will often be right; if you feel something is off or too good to be true about the broker, move on and continue your search. You need to establish a relationship with someone you can eventually depend on.

When you're looking for a freight broker, keep an eye out for ones with specialized experience. The more they know about your industry, the better off you'll be. Specialization means they’re more familiar with your business and that can lead to finding more quick wins to save time and money. For example, if you're shipping with Revolution, we provide you with a dedicated 24/7 control tower with impeccable service standards. Our experienced Operations Team is equipped to tackle the most complex logistics scenarios.

A customer leaving a five-star review

2. Licensed, bonded, and insured

All freight brokers must be registered with the Federal Motor Carrier Safety Administration (FMCSA). Furthermore, to complete registration, you must also be bonded and insured.

The best way to protect your business is by only working with freight brokers who are licensed by the FMCSA. This will reduce the chances of fraud or damages.

3. Carrier partnerships

Keep in mind, freight brokers themselves won't take control of your shipment. Rather, they work with carriers to find the best option for you as a third party. In order to ensure your freight arrives safe and sound, you need to trust your broker's carrier selection.

When you're on the lookout for a freight broker, always ask about their process of choosing partner carriers. You should prioritize safety as well as quality and speed.

Acrostic of skills

Revolution owns and operates a fleet of trucks; however, many of our customers have unique needs that require specialized equipment. For those instances, we rely on our partner carrier network. To hold these carriers to the same high standards we live by Revolution has developed a proven Carrier Excellence Program that constantly measures and monitors key performance indicators. This program ensures compliance and consistency for every shipment.

Rapidly evolving supply chains are impacting all businesses, making logistics the top priority in every boardroom.

Revolution brings the necessary responsiveness and predictability to this dynamic world. If you're looking for someone trusted to handle your freight, contact us today!

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