What Is a Freight Brokerage Company, and What Do They Do?December 13, 2019 4:54 pm Leave your thoughts
If you’re not a trucking industry insider, you might not know what a freight broker is or what these types of companies do. Many of us don’t think about how our products, food and other items get from Point A to Point B, only caring that they do arrive intact and on time. When you understand more about how the trucking industry works, however, you’ll quickly gain a greater appreciation for the contributions that truckers and licensed transportation brokerage companies in Minnesota make to society.
What is a freight broker?
A freight broker acts as a liaison between shippers and carriers, to help match them and secure transportation for the shipping of goods. Their job involves overseeing the transportation process, from pickup to delivery, and keeping the shipper updated on the status of their shipment—like real-life tracking for a wide variety of industries and products.
Freight brokers cut down on the time a company needs to take in searching for, reviewing and ultimately hiring a transportation company—sort of how you can go to the post office, UPS or Fed Ex instead of going out to find someone who will drive your package to its destination.
In turn, freight brokers help transportation and trucking companies receive more business, since the freight brokers are proactively bringing shipping contracts and assignments to them. This cuts down on their marketing and administrative costs, letting both the shipper and the carrier focus on the meat of their specific industry.
It is the freight broker’s responsibility to ensure the shipments are not only picked up, but delivered on time and according to the terms of the shipper’s and carrier’s contract. This can include any special needs that the shipment requires, such as time constraints, refrigeration, hazardous material standards, special equipment or other special handling standards.
Day-to-day operations start with those pre-shipment considerations and follow the shipment all the way through delivery, at which point the freight broker will handle the billing process.
How freight brokers make money
In order to make money, freight brokers work with clients to find a company that can ship a particular load for a specific price; freight brokers charge an additional fee on top of that to pay for their time and labor. Freight brokers typically use internet forums to find carrier companies that specialize in the specific kind of shipping and handling needed for a particular shipper.
As you can see, a lot more goes into getting your goods where you want them to go than just driving a specific route.
Licensed transportation brokerage company in Minnesota
K-Way Express, Inc. is equipped to put together customized, value-added transportation solutions for clients of all sizes. We are a fully licensed transportation brokerage company that works with over 700 carriers to provide outstanding service. We apply our experience, energy, and enthusiasm to meeting your transportation needs in a timely and cost-effective way. Whether you need dry vans, refrigerated trailers, flatbeds or specialized equipment, K-Way Express, Inc. is prepared to meet your needs. Call us today to find out how we can make your shipment process a breeze.