Do you need a Freight broker? Freight and forward business presents many risks in the handling of the merchandise. Whether you carry cargo or need to ship it. With so much mobilization it is easy for a mishap to occur. Miscommunications, delays and freight damage can cost you a lot of time.
For carriers, as your operation grows and you ship more cargo, you may not have time or staff to maintain your quality standards. And as a freight carrier, you need reliable access to cargo so you can increase your profit potential. No matter what end of the equation you are at, you may need to work with a freight broker.
What is a freight broker?
A freight broker is an intermediary between freight and shipping companies and carriers. Instead of taking possession of the cargo, the agent facilitates communication between the shipper and the carrier. They are the ones who make sure that the delivery is made smoothly through the carriers and that the cargo arrives safely, on time.
It is very convenient for carriers to work with freight brokers because they have a single point of contact from the point of departure and the point of destination, while the cargo moves.
Working with an agent eliminates the messy process of negotiating with a carrier, planning routes, and tracking cargo. Carriers also like to work with freight brokers to optimize their routes and minimize dead miles, increasing their profits in less time.https://www.flockfreight.com/2020/01/03/
Freight brokers use their expertise to improve delivery times, prevent damage and increase the efficiency of their supply chain. These agents offer lower rates because they combine the cargo volume of all the carriers they work with, negotiating lower rates that favor their customers.
When do you need a freight broker?
If you’re shipping cargo right now without a hitch, it may not be the right time to hire a freight forwarder. It depends on your business and industry. But if you are looking to improve your shipping process, a freight forwarder may be able to help in these 3 situations.
1. Cost reduction
Freight brokers know the business well and are always looking for the best margins. It is well known that cost reduction is one of the main reasons why carriers hire freight forwarders.
Freight brokers are cargo experts. They have the experience and connections to optimize your supply chain, finding easy profits that reduce your costs, passing the savings on to you.
In addition, freight brokers are consultants. You can bring them in to help you as needed, so there’s no need to hire in-house employees to handle your shipment.
2. Capacity: Every business wants to grow.
But if you’ve grown too fast and have difficulty managing the load, you may need a freight forwarder. A freight forwarder steps in and lends a hand to your logistics when you are at eye level at work.
If you need to process a large influx of cargo in a short window of time, a freight forwarder has the experience to handle it for you. It’s also a great solution for seasonal businesses.
3. Time and quality.
Time is literally money in the world of shipping. If your cargo is not delivered on time, it can have serious consequences for your entire supply chain. A freight forwarder will work with carriers to optimize their route, eliminating costly delays.
In addition, freight brokers have procedures in place to minimize any damage to your cargo. If you are sending fragile and time-sensitive cargo, a freight forwarder can reach the finish line without the headaches. They must have complete control over their pick-up and drop-off schedule, ensuring shipments arrive on time and in excellent shape.
Why do you need freight broker?
Consolidating is gathering a set of cargoes from different customers to travel in a sea container. This saves shipping costs considerably.
De-consolidation of the cargo.
Once the container of the cargo arrives at the port of destination, the agent is responsible for de-consolidating it, that is, separating it according to the different customers.
Issuance of shipping documents.
The agent is in charge of issuing all the legal documents “Bill of lading”, in the maritime case or the “Air Guide” if the cargo is by plane. These documents required by the authorities of each country are very important, as they give you identification and ownership of your merchandise.
Contracting of carriers.
The freight forwarder is in charge of contracting the means of transport, with airlines or shipping lines to coordinate the shipment of goods.
The Freight Forwarder is responsible for collecting the goods that arrived and storing them in warehouses, until they are nationalized.
Process the upload document. When the goods arrive, the Agent is in charge of preparing all the paperwork in the national customs.
How to choose a good freight broker?
Search the web. Internet location is almost as important as your ratings. Use these 3 factors to sift through freight forwarders companies and find the right partner for your business.
1. Experience of Freight brokers.
You are entrusting your livelihood to a freight forwarder. Moving the products out of your business is a big responsibility, and that means you need to hire an experienced company.
Investigate potential brokers. Check out their website, reviews and social media. Are they established and accredited? Do you trust them? If your gut is saying no, move on to the next freight forwarder. You need someone you can trust.
Keep an eye out for cargo brokers with specialized experience, too. The more they know about your industry, the better. Specialization means they’re more familiar with your business, and that means they can find faster wins to save you time and money
2. Licensed and insured.
In the case of overland transportation, each freight forwarder is legally required to register with the Federal Motor Carrier Safety Administration (FMCSA). To be registered, you must also be in service and insured. You always want to make sure your freight forwarder is licensed from the FMCSA. This will protect your business in case of fraud or damage.
3. Carriers’ associations.
Remember, the freight brokers themselves will not take possession of your cargo. They are finding carriers for their cargo as a third party. That means you need to rely on your freight forwarder’s judgment to choose a reliable and safe carrier.
When you’re evaluating freight broker companies, ask them how they choose their partner carriers. You want to make sure they are checking safety first, as well as quality and speed.
At Trackingpremium we offer a good load management software.