Transportation Brokers

Written by Kathleen Gagne
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Transportation brokers are those persons or companies that specialize in connecting shippers and carriers by negotiating contracts, rates, and specifications. In order to act in this capacity, a broker or company must be licensed to do so. In essence, they are outsourced management. They act as an extension of the shipper's logistics branch by managing the details and any problems that may occur in the process.

Lower Costs, More Confidence

Most shippers are acutely concerned about secure and on-time arrival of their shipments. Clearly, if the goods reach their destinations in a timely manner, the shipper is more likely to be paid for the load in a timely manner. This level of performance engenders trust in the quality of the goods and the commitment to on-time service.

Transportation brokers also offer audit services that reduce overcharging and more accurately track units on rigs and in third party warehouses. At the same time, tracking truck locations using both daily call-ins and GPS tracking systems gives shippers virtually instant access to the location of each of their loads en route to a final destination. This is not only a peace-of-mind issue, it can also mean the difference between a late load and an on-time load which translates directly into dollars.

Transportation Brokers Online

Most transportation brokers have a mission. Some focus on cross country hauling or hauling a particular type of load, such as reefers for foodstuffs. Some will work only with large shippers. Others offer their services, often online, to companies of all sizes which may result in a commitment to LTL trucking along dedicated lanes. Note that working directly with carriers by getting quotes online may not result in the lowest rates or the best choices in terms of carriers suited to the shipper's needs. Working with a broker, however, can result in lower rates and better service throughout the process.


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