Why Trucking Companies Want To Work With Freight Brokers

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In the last 10 years trucking company owner operators have found themselves in a technological jump where all of us are trying to learn, understand, and in most of our cases install ELD technology into our trucks. Technology has slowed our delivery time down with ELD and HOS hours Of Service Mandate to the point that its effecting the bottom lines on every small trucking company and freight brokerage in America.

These reasons are the final decision for most of us this year to force us to start focusing on better paying lanes and less dead head. The fuel prices for national average of diesel continue to rise and Trucking Company Owners are faced with strategic planning. Another major hit the small trucking company owners today in America is driver shortage. It is becoming increasingly more difficult to find drivers who just don’t quit or over damage your equipment. For these important issues today facing us, we must be prepared to find alternative measures to place into our business structure to secure more consistent freight and gain higher exposure to more shippers.This is the job of a true freight broker who is managing freight lanes for your trucking company. It’s imperative today that we learn how important a trued freight broker is today for small trucking company owners to build relationships with.

Over the last decade truck companies have been confronted by many new freight broker agents not delivering on their promises and exiting usually with a one load quick freight load for a $ buck. The influx in freight agents literally sent a trickle affect to the point that shippers and carriers are having hard times on freight rates for the inconsistency floating around within logistics caused by nonprofessional freight broker agents since late 2008 until now.

For these reasons carriers find themselves today dealing with trust issues and overall business ethics that freight broker agents have represented. These types of assumptions are valid because all of us who own trucks have dealt with shady freight brokers. In today’s world of logistics, trucking company owners today can still find many great professional Logistical Service Providers who are skilled and able to build freight lanes.

Overcoming the stigma and trying to understand how the relationship between freight brokers and carriers will never go away, its time more owner operators where open to the idea of truly working with a logistics broker who can understand their truck company and help develop freight lanes on behalf of their truck company’s benefit.

Trucking company owners need to realize that the national average of freight moved in the back of trucks today in America is 70%. This means that a lot of freight cannot be had by going direct with the shipper. The shippers of America today are connecting to EDI Systems (Electronic Distribution Interchange Technology allows shippers to connect their supply demands to an online network of logistics options within one main system). Within logistics we geeks call this fun and exciting as it allows us to better manage freight lanes and see future forecast within lane prices.

Asset companies s who are smaller in size find it hard to connect to better loads or to recreate lanes that they previously lost and keep trucks on the road with less dead head miles and higher rates. A true fright broker company will help you over these obstacles and represent you into more solutions through technology that provides real freight loads that pay.

Top logistical quality’s to search for when working with 3pl companies and freight brokers are:

A True Freight Broker Should Provide your business with these services:

• A true freight broker will have an established logistical niche within certain industries. He or She will have the ability to manage your freight needs and be able to forecast with new direct freight loads that allow your equipment to gain consistency.

• A True Freight Broker Agent will have your trucks within certain geographic areas that allows you to maximize the type of drivers and equipment you have within key markets.

• A True Freight Broker will build your freight lanes into solid consistency with loads that connect you directly to the freight source moving out of your location and back into freight terminal locations.

• A True Freight Broker is spot on when they dispatch your trucks and manage your check calls for timely deliverance. They insure the driver has all the information needed and on call for assistance with pickup and delivery of their assigned load.

• A True Freight Broker will assist you with your compliance and IFTA reports by providing you with detailed reporting on your freight loads for your convenience.

• A True Freight Broker is keeping you up-to-date with safety and maintenance compliance information and any new mandates or laws that affect your trucking company. It is their job to make sure your always informed and prepared for over the road compliance by State.

• A True Freight Broker keeps your drivers satisfied with GPS and TMS services with great communication skills to assist the driver with load issues or compliance issues with the load movement.

• A true Freight Broker Agent is a person who does not work alone and has a solid team who assist them in keeping your trucking company moving forward.

There are many other attributes that only best describe to what I believe is a true freight broker agent and working with one can help any trucking company get a better solid foundation for growth and stability for their full truck loads. Freight brokers should always keep the carrier first with building more lanes that provides consistent freight and they should always be representing your company to more shippers with freight options. By both parties working together these lanes can easily be created quickly and both benefit from the volume of consistency. I personally feel that a small trucking company can be more profitable quicker by working closely with their freight broker.

Working with a freight broker can be rewarding if both parties are focused on the same industry. For this reason, trucking company owners want to choose freight brokers who are focused on the right industry that fits their equipment. Trailers determine the freight that you haul, so trucking company owners do not want to reinvest into new trailers, for this reason it’s better to build with what you have and grow within the niche with the right freight broker who is currently working within this niche for freight services. The old saying of do one thing well and do it the best is true in this situation. Provide consistency in your trucking company with the same equipment. This enables the freight broker to reach out further in creating better shipper options on behalf of the trucking company and the services the Broker is able to offer the shipper can create better results for both teams.

I think in today’s logistics industry, it’s a very smart idea for trucking companies to join forces with other like-minded trucking companies and create volume within the same equipment. Volume is what catches the big shipper’s eyes and it lands good solid paying lanes. This is very difficult to do if smaller trucking companies are not networking within their freight broker to team up on good loads.

A few other qualities that a new trucking company would want to compare when working with a freight brokerage is find out exact information how the freight brokerage will pay you for your full truck loads you deliver for them. Every great freight brokerage will offer payment options with no additional fees. Getting paid on time should not cost you more money for getting paid for your freight delivery services.

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