freight brokerage

How Freight Brokerage Works

Investing in freight brokerage is an appealing option to many small and medium-sized business owners looking to get the most affordable rates on moving their freight. However, the specifics of the freight brokerage business can be lost on many of these same business owners.

Questions like, “how does freight brokerage encourage competition,” and “what does a freight brokerage company do?” are usually fresh in the minds of those interested in securing a broker for themselves. Making sure you know the answers to such questions is your first step to getting the best rates possible for your next haul.

What does a Freight Broker do?

To put it simply – a broker negotiates freight hauls for your business. By choosing to go with a broker, you eliminate two important business expenses from your budget. For one, you free up your on-staff truck drivers for jobs more suited to their pay and expertise. Secondly, you free up any time involved in dealing with freelance truck drivers.

A broker deals specifically with freelance drivers and negotiates fair rates on your freight hauls with those freelancers for you.

How does freight brokerage encourage competition in the industry?

By focusing specifically on haul negotiation, a freight brokerage company can identify the bare minimum costs of a hauling job and capitalize on that information.

For example, it’s much more difficult for a freelance driver to charge too much for a single haul job with a diligent broker company in the mix. By applying what they know about haul negotiation, a broker can hold fast to its cost estimates when dealing with freelance truckers.

How can my company benefit from using a broker?

By delegating your company’s haul business to a broker, you are handing over something which is typically handled by one or two employees to an entire company of people. Brokers like us use our knowledgeable employees and large pool of freelance drivers to maximize the amount of money your company saves on each haul job.

In a nutshell, if you find that the specifics of haul negotiation is bogging you down or costing you too much, consider trying out a broker. You’ll find that it’s much easier (and cheaper) to entrust an expert with the task.

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