In this day of making life easier for people, agents or brokers are providing a one stop shop for clients who are just too busy to go looking for the best prices and service.

Transport and freight brokers form an integral part of the logistics industry in today’s businesses. Being able to manage shipping, carriers, and schedules is a valuable function to all parties.

By using a transport broker the work involved getting the best pricing, suitable schedules and more importantly timely deliveries, would be so much easier without having to deal directly with the transport companies. Don’t we use mortgage brokers for the same reason?

There are so many different companies offering so many different services and all at various rates that making a choice can be a nightmare.

The job of being a transport broker is competitive enough in the industry because they have to be able to add value to the shippers as well as the carriers by building a relationship that will ensure continued business.

This usually means that the broker is an expert in the logistics business as well, being able to understand the requirements of the client and matching those needs with the most suitable transport company.

Creating Value

An effective freight agent should have good sales skills. Superior communication skills will enable the broker to work out what the shipper needs in the level of service.

A certain degree of technical knowledge in the logistics industry will also come in handy when trying to establish what the item is that requires to be transported and whether special conditions apply.

There are many different types of trucking services such as tray tops, tippers, low loaders and one tonners. Securing the load might need chains, ropes, tarpaulins, pipe racks or straps.

Will the driver require safety equipment when delivering to a specific site such as construction or mining where a hard hat and steel capped boots are compulsory?

There are quite a few variables involved in the transport game and an experienced operator makes sure that all the bases are covered when offering a service and a price.

Despatch

Quoting a cost and a service level is only a job part done. Once these details have been confirmed, then the transport company needs to find the right carrier.

Where is the load to be picked up? Where is the load going? Is there a scheduled delivery time promised? The relationship with the trucking company grows with repeated business, so getting it right the first time is rather important.

Conclusion

Transportation costs make up a hefty part of a company’s total cost. As a result, a transport brokerage service provides some relief in a competitive industry.

Services offered by a transport broker provides lower transport costs to both the carrier and the consumer.

Middlemen – Transport Brokers

In the transport industry, two types of companies exist and with whom you can do business. One is the transport broker, the other is the transport company.

While they both provide a logistics solution to your problem, they are very different in the ways they deal with it. It all has to do with knowing which services are the best for your needs.

The Broker in the Middle

A transport broker for the shipment of goods is a company that deals with individual customers. A team of brokers might operate out of offices and their job is to coordinate transportation services between the carrier and the customer.

You can call them middlemen who bring together two parties – somebody needing a transport service and the other supplying a transport service.

The Process of Shipping with the Broker

The process of booking an order with a broker is much easier than if you book direct with the carrier. If you provide all your shipping info such as the pickup and delivery addresses, contact details, and payment information, the process is fairly streamlined.

The broker will send your order to their best carrier company and schedule a pickup of the goods and then inform you of what’s happening each step of the way.

These days the technology allows you to track the consignment all the way and the broker is available to answer any additional queries during transport.

The Carrier

The carriers themselves are the people that physically move your goods and are the backbone of the logistics industry.

They carry all the necessary paperwork such as insurances and licences to do their job. The costing of your transport ultimately lies with the carrier.

You need to be aware of the quote supplied by the broker and make sure it includes all additional fees that may apply to the cartage of the load.

It’s not a good situation when the receiver might get hit with an additional charge on delivery. Price differences ae not all that common, but remember that the carrier is a separate entity to the transport broker.

The Partnership

Many carriers have a reliance on the brokers to find their loads as they are busy transporting the goods, not chat to potential customers all day. Not all carriers have a centralised depot.

Many are out on the road for 10-12 hours a day doing what they are good at – delivering goods. Some brokers have their own carrier service or represent a big logistics company and can provide a range of different transport solutions.

Hundreds of carriers and transport companies ae out there, and you have to find one that provides the most cost-effective service to best suit your needs.

That’s where a broker comes into the picture. They have the time, the connections and the solution. If they do their job like the professionals they are, then your goods will be transported by a reputable and reliable carrier.