Freight broker companies partner with trucking companies for their services – but do not own or maintain a fleet of trucks or trailers. They bring together a shipper that needs to move goods with an authorized motor carrier. They essentially act as an intermediary – leveraging their knowledge, investment in technology and people resources to help both the shipper and carrier.
The People
With such a diverse industry, a wide-range of players are required to thrive. First there is the freight broker, the middleman who connects shippers and carriers. A shipper is a person or business that has goods that need to be transported. A carrier is a company that provides truck transportation. There are private carriers, who provide truck transportation for its cargo or for-hire carriers who are paid to provide truck transportation to cargo that belongs to others.
The Experience
Many brokers start out as agents; with just a computer, telephone and fax machine. They then can become a broker, whose duties mean they are responsible for issues like paying carriers and maintaining insurance and bonds. Most freight broker companies start off in a local market and then as they network and create contacts grow to be state-wide or multi-state.
The Knowledge
The broker’s job is to identify which of the thousands of carriers operating are best to handle the shipper’s load. A big part of their job is ensuring reliability. They advertise their services in trade magazines and directories, but a large part of their work comes from word-of-mouth. They take their jobs very seriously and sometimes even scout for drivers at truck stops, inspecting their trucks to make sure they are clean and well-maintained. They speak to drivers and ask about their company, hoping to make a connection.
The Operation
Freight broker companies rely on shippers to call them with a load. They then complete paperwork and call carriers to see who is available. Then, the carrier dispatches the driver, and the driver confirms with the brokerage that the load has been picked up and then again when it’s delivered.
As one can see, being a freight brokerage isn’t as simple as it sounds. It takes years of experience, a wealth of contacts and hard work to act as a middleman and keep all parties happy.
