A freight broker acts as a link between companies and carriers to ensure their goods are delivered to particular destinations safely and in a timely manner. They either work with agencies or for themselves as independent contractors. They may work with individual and company-employed truck drivers to find shipping solutions for companies. You can get more information about freight brokers and their services on the MX Solutions freight broker website.
What Does a Freight Broker Do?
Freight brokers have a wide range of duties and tasks they need to perform to ensure their clients’ shipments reach their destinations safely. Listed below are some of the things freight brokers do daily:
- Generate sales leads for their company
- Gather and store information about goods for the company
- Negotiate prices and prepare quotes
- Identify, verify, and commission a carrier for transporting goods
- Use their network of logistics contacts and load boards to connect shippers with carriers to move cargo
- Negotiate the best shipping rates for their clients
- Ensure cargo with specific needs, like refrigerated freight is matched with carriers that have the right capacities
- Track shipments for clients and ensure that the cargo reaches its destination safely.
- Handle compliance requirements and other paperwork for shipping different types of cargo
- Make sure carriers receive their payments for the services they provide to shippers
- Optimize carrier loads to help ensure trucks are running full and efficiently
Each of the above-mentioned tasks is critical for logistical networks to operate efficiently. Freight brokers must ensure they are performing each of these duties accurately.
Why Should Businesses Hire Freight Brokers?
As a business owner, you may often wonder if it is worth partnering with a freight broker to transport your goods from one place to another. The services offered by the broker make hiring them worth it. Listed below are a few reasons why you must hire freight brokers:
- Freight brokers eliminate unsuitable and unreliable carriers and connect you with reliable carriers who fit your requirements.
- They act as a point of communication between truck drivers and shippers
- They help track the status of loads and provide real-time updates
- They have access to the latest technology and software, like the transportation management system and electronic data interchange software, which would otherwise be expensive investments for you
- They let you quickly scale up your shipping operations whenever necessary
While the above-mentioned skills and more validate working with a freight broker, your shipping needs will be met accurately only if you hire a broker with the right skills.
What Skills Must a Freight Broker Have?
So what skills must a freight broker have? Listed below are some of the critical skills that freight brokers must possess to be successful:
- Information about the practices and standards of intermodal freight shipping
- A wide network of contacts
- The ability to constantly create new logistics contacts
- A detail-oriented approach to their work to prevent any important elements from slipping through the cracks
- Information about how freight rates may change based on inflation, capacity, currency fluctuations, gas prices, and other factors.
- Capability to think on their feet and develop innovative solutions to logistical problems
- A strong customer service-oriented mindset to offer value to customers
- Strong people skills for working with shippers and carriers
- Familiarity with and respect for the laws and regulations governing freight brokers
Freight brokers must develop these skills to ensure they are able to help their clients successfully. Most shippers will keep these skills in mind while looking out for freight brokers for their business.
What Credentials Does a Freight Broker Need?
Most freight brokers work remotely. However, they must have the necessary credentials and licenses to be able to perform their job legitimately:
- They should be registered as a freight broker with the FMCSA
- They should be registered with the state-level Unified Carrier Registration database in their home state
- They should have a BMC-84 freight broker surety bond with a coverage amount of $75,000
Though the FMCSA doesn’t require freight brokers to have insurance, it may be a good idea to be insured. Most companies may look for brokers with insurance like contingent cargo insurance or errors and omissions insurance.
How Can a Freight Broker Benefit a Company’s Shipping Process?
Companies and businesses can benefit a great deal from freight brokers. Listed below are a few ways in which freight brokers can help companies:
Reduce Costs: Freight brokers understand their clients’ shipping procedures and hence work to lower shipping costs. They have the right experience, connections, and resources required to decrease shipping costs and help companies increase their revenue.
Preserve Quality and Save Time: Freight carriers create shipping plans to make sure businesses receive their shipments in a timely manner. They plan out processes for shipping perishable and fragile items so that companies don’t suffer losses due to damaged or spoilt goods when they reach their destinations.
Increase Capacity: A freight broker can help a company increase its operations by increasing its shipping capacity. They can help companies handle large orders in a short span.
Freight brokers can help businesses a great deal by ensuring their goods are transported on time and without damage. Companies like MX Solutions offer freight brokerage services to different types of businesses. They offer the best shipping rates and quality and will give you a wide range of reliable and dynamic transportation options to choose from.