Not using a freight broker can hurt the shipment when moving cargo domestically. Freight brokers are the intermediary between shippers and trucking companies. The job of freight brokers is to ensure the delivery of goods by coordinating between the two parties. Additional responsibilities include numerous solutions for a customer’s supply chain. While shippers do not need them for transportation, shippers consider them essential due to the value they offer. Especially if they’re inexperienced shippers unfamiliar with the regulations and paperwork for transporting their shipment. This article will explain why freight brokers are valued and the benefits of using them to ship.
The Consequence of Not Using A Freight Broker
Although freight brokers are not mandatory, having their assistance can prevent various mishaps in the shipping process. A primary reason why shippers use freight brokers is because they handle the transport of the cargo for them. This is similar to how international shippers use customs brokers and freight forwarders. The transportation of goods is usually part of a more extensive supply chain with various components. A typical part is the domestic transport of goods by truck to the port, warehouse, store, etc. While larger shippers tend to have their trucks, more minor to mid-sized shippers commonly have assistance from outside carriers. An issue arises when there are hundreds of carriers, some of which may not be ideal.
Choosing the wrong carrier can lead to delays in transport, monetary loss, and, even worse, goods stolen. One of the primary purposes of freight brokers is to verify truckers to ensure legitimacy for the shipper. With the amount of things that can go wrong when transporting freight, not having a broker can have additional effects. An example is when preparing the documentation for the shipment. Domestic shipping involves paperwork like the packing list, bill of lading, commercial invoice, proof of delivery, etc. The documents must be prepared correctly by the shipper to prevent any backlogs. However, that can sometimes be confusing. A freight broker handles the preparation on behalf of the shipper.
Benefits of Using A Freight Broker
Along with the benefits of freight brokers previously mentioned, it extends much further. Some of the benefits include:
- Managing Logistics – When a shipper uses a freight broker, they hand their shipping process off to them. Along with arranging the documentation, brokers coordinate the pickup and transportation of the cargo. They also track the shipments and resolve issues that can arise during transit.
- Reducing costs – Another reason shippers use freight brokers is because of the money they can save instead of looking for carriers themselves. Brokers are usually in contact with many truckers to find the best rate for the shipper. They also reduce costs by mitigating risks from having complete visibility of the shipment.
- Speed – Finding trucks to transport cargo can be time-consuming for the shipper. The brokers’ carrier network helps immediately match shippers with trucks. Brokers also typically have connections to trusted expedited services.
- Greater Scalability – Small to mid-sized companies use brokers as their orders grow. As the number of product orders begins to increase, freight brokers quickly adapt to meet the needs of their clients’ needs.
Reach A1 Freight Solutions at 786-375-9420 to speak to an experienced freight broker about moving your cargo. We have a network of carriers and numerous solutions for reaching your goals.