Truck Freight Broker: The Vital Link

Logistics is a term used to described the process of managing warehouse stock inventories

and freight transportation from the point of manufacture to the point of sale or use. Logistics teams are employed to streamline the process in the most cost-effective manner. A truck freight broker is a logistics provider that is typically out-sourced by companies who are seeking to lower freight shipping costs for a competitive advantage. Simply stated, a freight broker plays the role of middleman between a shipper and truck freight carrier for the benefit of both.

Large companies and small find advantages of using truck freight brokers over company-owned freight transportation options for the value added services offered as well as often significant cost savings. Freight brokers effectively create the bridge between companies who need to have their freight shipped and the truckers who meet the shippers' requirements and budgets. Brokers provide the volume that effect lowered pricing to shippers with a greater cost efficiency to truckers.

Value Added to Shippers

Employing the use of a truck freight broker saves the time of company managers since they are freed from the duties of locating carriers who qualify to meet their specific needs. Professional freight brokers have an extensive and intimate understanding of the industry that enable the best match between the shipper and carrier, building relationships with both.

A freight broker has the knowledge to ask the right questions to determine optimal trucking services, such as the type of truck needed, i.e. flatbeds or step decks. A broker will determine the time sensitivity of a shipment along with any special equipment needed to secure it to meet the needs of the shipper and client. Considering these factors along with current supply and demand, geographical determinations, and balancing cost and customer service, a broker is able to quote the best rate available.

Value Added to Carriers

A successful truck freight broker develops relationships with trucking companies through guaranteed repeat business and a history of reliability and trust. A broker enables carriers to be able to bid on business they would otherwise not be aware of or have access to in order to maximize loads and profitability. It also helps to ensure that trucks will not remain empty on their return to the original destination.

This vital link between shippers and truck carriers is one that provides critical services in a highly competitive industry. Shippers are offered the most efficient delivery of goods at the best possible transportation prices and trucking companies maximize loads and profits to remain competitive. Perhaps the ultimate winners are the end consumers who enjoy lower costs and the products they want.

by: Art Gib

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