If you are shipping a large amount of freight, whether it is a one time thing or on a regular basis. Your best bet is to contract a freight broker who has capacity to help you move your shipments. This article explains why your best option is to go with a freight broker as opposed to directly contacting a carrier. I will also explain which freight brokers are the best and most reliable.
Many shippers often think that it will be a cheaper option to contract a carrier directly to transport their freight from one point to another. This is not correct and I’ll tell you why.
The freight broker or third party logistics specialist is a very important part of the supply chain for both the shipper and the carrier. If you are the shipper you are almost guaranteed a better price by going with the freight broker (the right one) as opposed to going straight to a carrier.
The reason for this is simple, you see, no matter how much of your product you ship to your clients on a weekly, monthly or yearly basis, chances are that the freight broker ships an overall much higher volume. Just because, well, this is what they do all day.
Because of their high volume of shipping these freight brokers receive a much better price from the carriers who are actually doing the transportation of the freight. In turn, they can provide you (the shipper) with a price way below what you will usually pay if you were to contact a carrier directly.
This brings us to our next point, how do you know which freight broker or truck broker, is the right one for you?
The answer is simple, the more newly established Freight Brokers (such as us) are your best option. Now you can call this self promotion if you want but i just call it the objective truth.
You see, the “older”, freight brokers such as JB Hunt, CH Robinson, Total Quality Logistics, etc.. Have an entirely different business model. They tend to look at “freight brokering” as the most important part of the supply chain as opposed to seeing it for what it is, which is really just an intermediary step between the shipper and the carrier. This causes these companies to charge the shipper way higher than they are supposed to while they pay the carrier way lower rates than they should be receiving. This causes what we call an “inorganic/non natural supply chain”
The most modern companies (Freightship,Uship,etc) tend to act more as a neutral platform, a neutral medium, guaranteeing the shipper the lowest price possible in the current market. This saves shippers thousands, even millions of dollars a year while the carrier gets paid extremely decent rates and everyone is happy.
This is the job and the purpose (or at least it should be) of the truck broker. To act as a medium, a neutral platform and make sure the entire logistics process is smooth sailing for everyone involved.