Freight Shipping Rates

Written by Kathleen Gagne
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One of the reasons that shippers utilize the services of freight brokers is that freight shipping rates can be negotiated. The distance, the time, and the load will all factor into the shipping rate. As with most other industries, volume business makes a difference. Freight brokers understand this process and often have established relationships with a number of shippers. These relationships can save the shipper both time and money.

Shipping Scenarios

For example, a huge printing company may order massive rolls of newsprint, and the shipper must have the newsprint at the plant at a certain time on a specific day. The newsprint manufacturer starts to call the trucking lines that he normally uses but discovers that a massive snowstorm has half of the trucks blocked in. Since he only has one or two companies that he works with, he has no idea of who to call when he can't get the trucks he needs.

If the manufacturer worked with a freight broker, however, he would have a much better chance of getting his shipment where it needs to go, on time and at a great rate. This is because the broker will contact one of potentially thousands of carriers he deals with to find one that can move the shipment. The broker will negotiate the best possible rates for the shipper because the broker delivers enough volume business to the carrier that it makes sense for the carrier to lower his rates.

Creating a Win/Win Situation

A potential disaster can become a winning situation for all of the parties involved. The printer gets his two-ton newsprint reels. The shipper moves his product at a reasonable rate. The carrier has a load and, possibly, a return load because the broker has arranged for it. Finally, everyone has confidence in the process because of the expertise of the freight broker who makes a reasonable profit for his services.

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