The logistics and transportation industry relies heavily on the expertise freight broker companies bring to the table. In fact, most carriers would have to deal with many deadhead miles if they did not rely on freight broker companies to connect them to the shippers who need them.
However, like every business relationship, a carrier’s partnership with a freight broker company should be mutually beneficial. In this blog, we’ll explore ways to help you ensure a smooth, rewarding, and profitable relationship with your freight broker as a trucking company or independent carrier.
What Exactly Does A Freight Broker Do?
Freight broker companies serve as licensed intermediaries between shippers and carriers. Their job? To connect shippers with carriers and facilitate the smooth movement and successful delivery of goods. This includes working out deals between truckers and the shipper, communicating the status of the goods being shipped, and more.
Freight broker companies also play a crucial role in ensuring shippers and careers operate profitably and in line with the law.
However, as freight broker companies should ensure that all loads are delivered on time and within the budget, they can be very picky about which carriers they can partner with.
What To Look For In Freight Brokers
Before choosing a freight forwarding company you want to partner with long-term, you must ask yourself the right questions. This helps you select trustworthy brokers to find you loads and negotiate win-win deals.
How Long Have They Been In Business?
Experience matters, and when you partner with a freight forwarding company that has been in business for a while, you benefit from their shipper contacts, connections in the industry, customer feedback, and more.
The most significant advantage comes if they have road-tested expertise. This means that in addition to connecting you with shippers and helping you navigate the road, freight forwarding companies have experience behind the wheel and understand first-hand the challenges you face and how to resolve them the best way.
How Do They Get In Touch With You?
As a carrier, you will not always be in control of factors that may affect pickup and delivery, from heavy traffic to lousy weather. When you work with a freight forwarding company that keeps an open line of communication with you throughout the shipping process, you will have the information you need to ensure successful delivery. As a result, you can mitigate the impact of unexpected challenges.
How Big Is Their Company And Are They Legitimate
Our expert advice in terms of company size? A freight broker company should be enough to listen and big enough to help you secure loads and give you access to the resources you need for smoother pickups and deliveries.
Another vital thing to consider is whether their business is legitimate. This includes ensuring they are licensed, registered with the FMCSA, and hold a freight broker bond.
How Flexible Is Their Network?
Start by asking your freight broker company about their carrier network. How many truckers do they work with, and what type of vehicles and equipment do they operate? What is their geographical reach? Do they have a strong presence in the regions you usually operate in?
If your broker has a well-established network in key routes, you will have access to more opportunities and find trucking loads that are lucrative.
Do they use technology?
Leveraging technology platforms offered by freight forwarding companies can streamline your trucking experience, from enabling real-time tracking to simplifying communication and enabling access to critical information. This allows proactive decision-making in response to unexpected events while minimizing administrative burdens.
Keeping Your Partnership Mutually Beneficial
Know Your Market
Knowing the current market rates and recognizing the factors influencing supply and demand empowers you as a carrier with the information you need to find trucking loads and land sweet deals. As a result, you can rest assured knowing your trucking operations align with market dynamics.
Negotiate Like A Pro
Once you know your market, the next step is striking a balance between competitive pricing and quality of service, and it all starts with polishing up your negotiation skills. Assess the value-added services your broker offers, market conditions, and even the unique aspects of each transaction. This ensures fair deals and helps you find trucking loads more consistently, keeping you in business for longer.
Remember to be adaptable and open to adjustments and compromises for smooth negotiations.
Discuss Payment Terms
Never shy away from having transparent discussions about how and when you will get paid for each delivery. Establishing a mutual understanding of payment terms ensures that all parties involved are on the same page, reducing the risk of payment-related disputes in the future while building trust.
Track Your KPIs
Keep an eye on both your performance and that of your broker, from on-time delivery rates, cost per mile, and responsiveness in communication to problem-solving capabilities and hours spent on the road.
By measuring performance, you can quickly identify areas for improvement, discuss them with your freight broker company, and do what you have to enhance operational efficiency.
Always Be Prepared For The Unknown
Logistics is unpredictable, and being prepared for the unknown is not just a best practice but a necessity. Therefore, carriers should always have contingency plans to address unforeseen events, from bad weather conditions to unexpected market changes. This includes planning alternative routes and re-negotiating terms with your freight broker company when necessary to ensure continuity of your operations.
To Conclude
Building a solid partnership with freight broker companies is the first step to making your experience in logistics profitable. Therefore, to thrive in this dynamic industry, it’s crucial to choose the right freight forwarding companies, stay informed about market trends, negotiate equitable terms, and continuously optimize your operations to meet the expectations of shippers.
Moreover, partnering with a freight broker company with road-tested expertise, a versatile carrier network, and innovative technology capabilities ensures seamless communication and support, especially when you’re on the road.
At Vens Plai Logistics, we value our carriers and leverage our technology, network, and road-tested expertise to find trucking loads and keep them on the road. Become part of our carrier network and maximize your earning potential.
