All over the internet, there’s s talking about how evil freight brokerage companies are and how they cheat carriers out of money, however, when you break it down, these accusations could not be farther from the truth.
What Do Freight Brokers Actually Do?
How does a carrier handle an urgent pickup or a problem covering lanes? What does a carrier do if there are no trucks available and a customer has a last minute request? Nobody would refuse the business. So a freight broker is called.
Freight brokers, like PLS Logistics, can be a great partner in sticky situations, but they can also be a primary transportation solution. A freight broker can help improve service to clients while minimizing the amount of money it takes to serve those clients. With the ongoing driver shortage, having a relationship with a freight broker serves as a useful safety net because inevitably, carriers will have to work with freight brokers.
Why Use A Freight Broker?
The supply chain is changing. The freight industry is changing. Stefan Heck, professor of Innovation and Resource Economics at Stanford University, says businesses will see serious risks to their supply chain in the near future. Companies will have to do more with less, especially in the trucking industry. (For a great Q&A with Stefan Heck about the ‘Resource Revolution’, check out this ) Freight brokers help carriers optimize their resource productivity. In other words, by doing things like scheduling back-hauls and more effective routes, each truck is doing more work for less money. This improves your bottom line. (Are you a shipper? Check out our post on why shippers use 3PL’s.)
What’s more, freight brokers may be the future of trucking. Shift Freight, an LTL carrier based in California, has developed a business model that relies solely on freight brokers.
And even though Shift Freight is a new company, they recently expanded their coverage area by 30%. They’ve also quadrupled their sales every year since the company was founded in 2010.
Contrary to popular belief, freight brokers are not out to steal money from truckers or the trucking industry. They optimize the freight business by saving time, money, and resources.