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What is a Freight Broker?

  • April 24, 2020
  • Madeline S.

The transportation and logistics industry is complex, with many moving parts working together to move freight across the world. Freight brokerages play an important role in connecting shippers and carriers. Many trucking companies find the services they provide extremely valuable, but what exactly is a freight broker?

A freight broker is simply an individual or company that acts as an intermediary between a shipper that has goods that need to be moved and a trucking company that transports products. Essentially, a freight broker is the middle-man that arranges the deal.

What are the Benefits of a Freight Broker?

Not every trucking company needs the services of a freight broker, however, there are many times when having a middleman benefits both the carrier and shipper. Freight brokers help carriers fill their trucks, and help shippers find reliable carriers to transport their goods. A freight broker can help negotiate better prices for both parties, as well as provide assurance of quality service.

What to Look for in a Freight Broker?

Finding the right freight brokerage to partner with is important. So what should you look for? A good freight broker should be financially stable, licensed by the government, and carefully vet their partners. You should also look and see what technology and software they use as the industry is becoming increasingly technology-reliant.

Freight brokers that utilize freight brokerage software have increased efficiency by having all of the necessary information available at their fingertips, from incorporating TL/LTL dispatching, sales and accounting, and freight management all in one easy-to-use platform.

When do you Need a Freight Broker?

Freight brokerages can provide a number of benefits for trucking companies, but how do you know if you need one? Working with a freight broker can be beneficial if:
• You are looking to fill trucks at a better rate
• Have an issue with your current shipper’s service or dependability
• Are doing well, but need more capacity or resources

We’re here to help your trucking business succeed. Whether you’re a single trucking company owner/operator or a large transportation corporation, AVAAL offers consulting and trucking management software to provide you with all of the tools you need to efficiently manage your business.

Contact us today to learn more.