5 Benefits of Using a Freight Broker for Shippers

There are many challenges to effective transportation logistics that can be confusing for shippers looking to move freight safely and cost-effectively. Without the right connections and expertise, businesses often face high shipping costs, limited carrier availability, and difficulty complying with FMCSA regulations.

Key Takeaways:

• Freight brokers help shippers save money by negotiating rates with multiple carriers. 
• A freight broker can access a vast carrier network to secure reliable freight capacity, even during busy seasons.
• They enhance supply chain efficiency by optimizing shipping lanes, scheduling, and coordination.
• Freight brokerage services often go above and beyond booking by assisting shippers with DOT compliance, tracking, and risk management.

Let’s explore these five key benefits of outsourcing logistics to a freight broker in detail.

1. Cost-Effective Freight Shipping

One of the biggest advantages of a using a freight broker is their relationships with multiple carriers. Brokers use these relationships to negotiate terms with carriers, most specifically freight rates. Here’s how it works:

• The shipper (consignor) contacts a booker at a freight brokerage firm to arrange transport of goods to a customer (consignee).
• The freight booker presents carrier choices, and the shipper confirms the booking.
• The carrier collects the shipment and begins transportation.
• The booker monitors progress, provides updates, and ensures successful delivery.
• The purchaser (consignee) receives a copy of the bill of lading (BoL) and a proof of delivery to confirm the purchaser received and took ownership of the freight.

Despite involving a third party, the freight brokerage actually keeps prices in check for shippers in the United States. 

Related: How to Fill Out a Bill of Lading

2. Expanding Freight Capacity Options

A major challenge for shippers is finding consistent and reliable freight capacity. This is especially true during times of high demand, such as holidays. Freight brokers help by:

• Providing access to a vast freight carrier network, including full truckload (FTL) and less than truckload (LTL) shipping.
• Putting load optimization strategies into place, which maximizes capacity for clients.
• Offering rail freight, drayage, air freight, and other intermodal shipping options to keep goods in motion.

With a broker’s carrier connections, shippers can ensure on-time deliveries without disruptions. This puts those shippers at an advantage over those who only work with a small group of transportation services. 

Related: What is Drayage? A Comprehensive Guide to First Mile Management

3. Improving Supply Chain Efficiency

Efficiency isn’t just a buzz word: it’s at the heart of maximizing profits and minimizing frustration for shippers. Little things like overlooking key delivery details can easily lead to costly delays and additional carrier fees, not to mention upset customers.

Freight brokers keep these inefficiencies in check by doing the following. 

• Working with third-party logistics (3PL) providers to improve transportation management.
• Optimized routing and scheduling to reduce transit times and costs.
• Coordinating shipments, allowing businesses to focus on core operations.

By partnering with a broker, companies can reduce delays, save even more money, and keep customers & retailers happy.

4. Complying With U.S. Government Standards

Understanding Department of Transportation (DOT) compliance and safety regulations can be difficult for those who aren’t experienced with all aspects of shipping. Freight brokerages handle carrier vetting and risk mitigation, ensuring:

• Strict adherence to industry regulations and government safety standards.
• Thorough background checks on carriers to prevent fraud or liability issues.
• Comprehensive insurance and liability protection, reducing risk exposure.

Shippers can trust that their freight moves legally and safely while avoiding compliance headaches by turning the reins over to a trusted, knowledgeable broker.

5. Saving Time for Shippers

Booking your own shipments, especially on a routine basis, takes up hours of time that can be utilized elsewhere. Shippers who rely on brokers to handle their shipments have more time to focus on:

• Expanding Their Customer Base: Growing a business is hard enough without getting bogged down in day to day logistics. Brokers can take that burden off the shipper’s plate and allow them to concentrate on their business itself. 
• Marketing Research and Analysis: Studying demographics gives businesses insights into buying habits. With this information, shippers can maintain lean inventories that still meet demand without stockouts or overstocking. 
• Internal Controls: With freight services handled by a third party, businesses can also spend more time refining their own internal processes to avoid fines and fees from governing bodies.

Now that you know these five reasons to work with a freight broker, why would you want to spend your time dealing with the tedious details of finding, booking, and tracking carriers yourself? Let us handle that for you.

Broker Your Shipments With USA Truckload Shipping

Partnering with a professional freight brokerage is vital for fairly-priced shipping that meets the needs of shippers and purchasers. Here at USA Truckload Shipping, we’re a third party logistics provider (3PL) with expertise in services such as:

• White glove shipping and delivery
• Hazmat transportation
• Expedited freight
• FTL and LTL shipping
• And more

Do you have freight that’s ready to hit the road? Call us at (866) 353-7178 or fill out a request for proposal online today!