The task of moving products seems pretty straightforward. But in actual fact, coordinating cargo movements among various carriers, different lanes, changing regulations, and ever-changing market dynamics is perhaps the most complex business function that a company will ever undertake. The consequences of doing a poor job are many – from time delays to broken relationships, fines, and missed revenue.

This is precisely why dealing with a professional freight brokerage firm can be one of the smartest business moves an expanding firm can make.

What a Freight Brokerage Firm Actually Does

The role of a freight broker is to be the expert in bridging the gap between the shipping companies who wish to transport their goods and the carriers who can perform this function. While the freight brokerage company does not own trucks or warehouse facilities, it possesses assets that make them very important in today’s complicated logistics market: extensive carrier relationships, up-to-date market information, and the expertise to properly match the right carrier with the right shipment.

This demands years of experience in carrier relationships, constant awareness of market rates and capacity availability, the ability to negotiate, knowledge of regulations in various regions, as well as systems that allow the management and coordination of several shipments concurrently without any problems.

In the case of organizations that are unable to develop these capabilities in-house effectively, a freight broker offers them the professional services needed in logistics management.

The Real Value a Professional Freight Broker Delivers

The following is one aspect many organizations overlook when conducting freight logistics on their own or working with just one carrier.

• Availability of more carriers: Freight brokers have connections with many qualified and licensed carriers operating in various segments such as road, rail, air, and ocean transport. These relationships afford the organization opportunities that are difficult, if not impossible, to find even with substantial volumes of business.
• Saving money using market intelligence: Freight rates vary due to factors such as fuel costs and seasonal changes, among others. The broker understands these changing conditions and utilizes the negotiating power of his/her company to get better rates than what the shipper obtains.
• Time savings and operational concentration: Finding a freight carrier, determining prices, organizing the shipment pickup, handling documents, monitoring, and addressing any exceptions take valuable time away from your operations. With a freight broker involved in all these processes, your employees will be able to concentrate on doing what your company does best.
• Risk management and problem solving: Delays, damaged cargo, shortages, and mistakes in documentation occur frequently in freight transportations. A freight brokerage company understands the potential risks and is ready to manage them successfully due to its experience.
• Regulatory compliance: In the course of domestic and foreign freight, companies must meet many requirements related to document processing, customs duties, hazardous materials, weight limitations, and freight carriers’ licenses. An experienced freight broker will handle these issues efficiently and successfully.

Who Benefits Most From Working With a Freight Broker

Businesses growing their shipping volume but lack logistics skills within their companies will enjoy great benefits working with brokers that will offer them such skills without requiring a permanent staff in the company. Businesses that start operating in new areas utilize freight brokers to help them understand the carrier environment in their new regions without having much knowledge in advance. Seasonal businesses can rely on freight brokers to offer them extra capacity when it is required without having to form any long-term relations with carriers that will rarely be used throughout the year.

Choosing the Right Freight Brokerage Partner

The marketplace consists of companies that vary from very sophisticated technology-based operations to small carriers with narrow networks and inconsistent service quality. Being aware of what to expect helps secure your supply chain and protect your business reputation during the course of the relationship.

Seek out brokers with extensive and thoroughly reviewed carrier networks, completely transparent pricing with no hidden fees, full tracking services, a proven history of timely delivery, and quick customer service to handle exceptions without having you run after updates.

Be sure to ask about their experience moving your specific freight type, shipping lanes, and any special handling needs your products may have. A broker that has successfully handled the same or similar products will provide more reliable service than one faced with those requirements for the first time.

Let the Right Partner Handle Your Freight

Your company’s purpose is to provide services to customers, create products, and earn money. Tackling issues with freight internally takes you away from all of these goals at once without gaining anything in terms of competitive advantage to show for it.For freight brokerage company solutions that bring you actual benefit, dependable carriers, and a professional logistics relationship, Incinque Business Solutions offers the knowledge and dedication you need.