What is a freight broker, and what do they do?

For many businesses, freight shipping can be a time-consuming and complicated process. You need to deal with everything from finding reliable carriers to preparing detailed documentation. 

Fortunately, working with a freight broker can make it all easier. But what are they, and what do they do? 

In this post, we’ll explain a freight broker’s responsibilities and the benefits of working with one.

What is a freight broker?

A freight broker serves as a liaison between two parties:

• Shippers: Businesses that need to have goods transported
• Carriers: Companies providing trucking services

Brokers don’t own or drive trucks. Instead, they use their comprehensive expertise and wide-ranging network to connect the right shipments with the right carrier. 

However, not just anyone can become a freight broker. In the U.S., brokers must: 

• Have a license from the Federal Motor Carrier Safety Administration (FMCSA)
• Hold a $75,000 surety bond (BMC-84) for legal operation

Before partnering with a broker, always check their credentials. 

What does a freight broker do? 

A freight broker is responsible for the following:

• Carrier vetting and selection: Brokers maintain a network of trustworthy carriers. They examine insurance, compliance, and other areas to help ensure carriers provide a reliable service. 
• Rate negotiation and optimization: A freight broker leverages volume to secure solid rates and terms for clients. These are usually better than the rates and terms that shippers may obtain independently.
• Tendering and documentation management: Brokers coordinate shipment details, including pickup, and delivery requirements. They also can provide documentation, including bill of ladings and contracts. 
• Booking, dispatch, and coordination: A good freight broker schedules the shipment with the chosen carrier and also plans pickup times, then relay all the essential details for transparency.
• Shipment tracking and monitoring: Brokers can use GPS and regular check-ins to monitor load progress. As a result, they provide visibility and proactively address issues or delays. 
• Solving problems and offering support: Brokers step in to resolve disruptions that may occur. These include equipment faults, weather delays, and compliance issues. Whatever the problem, a reliable broker will work hard to help ensure on-time delivery.
• Billing and financial processing: A freight broker invoices the shipper and pays the carrier. They also handle financial workflows to maximize efficiency and accuracy. 
• Relationship management: Using a broker cultivates long-term partnerships between shippers and carriers. Over time, this can lead to greater trust and reliability. 

Why work with a freight broker?

Here are some key benefits of working with a freight broker:

Save time and money

As brokers are shipping experts, they can streamline operations and lower freight costs. How do they do this? By leveraging their network and negotiating with their contacts. 

Thanks to their experience arranging freight shipments and industry knowledge, brokers can provide shippers with cost-effective and efficient solutions. 

As a business, working with a broker can help reduce your transportation expenses, leaving you with extra funds to allocate to other areas.  

Scale easily 

Fright brokers can help you find the right shipping service for your freight, regardless of your capacity requirements. It’s their responsibility to bring you a solution that suits your load size and delivery requirements. 

This scalability is ideal for businesses that are experiencing seasonal demand, undergoing rapid growth, or looking for better flexibility. 

A mutually beneficial relationship

It’s always in a broker’s best interest to provide you with the best shipping experience possible. The better the service they deliver, the better they’ll look to other potential clients. 

Understanding this can make it easier to trust a broker in the early stages of your partnership. However, due diligence is vital for choosing a freight broker you can truly depend on. 

Freight brokers: A great option for your business

What does a freight broker do? They can simplify the shipping process for your business, help you cut costs, and reduce transportation-related risks. 

If you need help to find the best shipping solution, DTS is here for you. We’re a professional team with over 30 years of logistics leadership experience, working with businesses of all sizes. We’ll make it easier to help transport freight in a cost-effective and efficient way, tailored to your unique needs. 

To learn more about how we can help your business, get in touch today.