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September 9, 2024
What is a freight broker?
Finding the right carrier is a prime example of “choice overload” that burdens the buyer with so many options the result can be indecision. There are more than one million for-hire motor carriers registered with the Department of Transportation, and it takes work to find the right one.

You probably don’t have the time or resources to reach out to even a fraction of available carriers, so how do you sift through hundreds of thousands of options to find the best match for your shipping needs? You get help from a broker.

What do freight brokers do?
Freight movements typically involve shippers (companies with goods to move) and carriers (for-hire trucking companies that haul freight). At the most basic level, freight brokers connect shippers with carriers, matching the shipper's freight demand with available trucking supply. Freight brokers don’t take possession of the freight, but their services go beyond just playing matchmaker.

Good brokers are devoted to cultivating relationships and see themselves as partners. They take time to understand shippers’ needs and priorities as well as carriers’ capabilities and reputations. They evaluate both sides to find the best fit, not just a quick fix. They also negotiate rates, arrange transportation, oversee the shipping process, and provide a single point of contact for booking and tracking loads. If problems arise during transport, brokers can step in to help find a solution.

Why use a freight broker?
Freight brokers bring value by providing expertise and convenience that shippers likely can’t achieve on their own. They streamline the procurement process, mitigate risk, and allow shippers to scale up and down based on demand.

How? First, brokers serve as a single point of contact, so instead of having multiple converations with multiple carriers, you have one conversation with your broker. Brokers then take your needs to their extensive network of carriers. Brokers’ networks are made up of large and small freight providers, so you can take advantage of a larger pool of capacity. That's especially important given that more than 95% of carriers in the U.S. operate 10 or fewer trucks.

Brokers have in-depth knowledge of current market rates, which can help you get a competitive price. They also have buying power and can often negotiate even better rates with carriers than you could get on your own. Brokers look at your operations to help you identify new opportunities for savings. Sometimes shifting a delivery window or consolidating smaller shipments into a single full truckload can cut costs.

Brokers' experience also means they have extensive knowledge of the transportation industry and can offer customized service. Are you looking to move goods along the congested Pacific coast corridor or deep into the labryth of Manhattan? Do you need a carrier that can follow detailed loading instructions so those kitchen cabinets arrive unscathed?

Brokers can help. They know which geographical areas carriers cover and who can meet specific load or equipment requirements, and they understand many other nuances associated with moving freight (fragile, perishable avocados anyone?). Tapping into carriers that specialize in certain areas or freight can get you a better rate and ensure your cargo is in the right hands.

Brokers also monitor carriers’ reputations. They evaluate safety ratings, regulatory compliance, and insurance coverage. They know what to look for and which questions to ask, which can help you avoid the added headaches and costs if something goes wrong.

When do you need a freight broker?
You can tap into a freight broker’s expertise anytime you need to move a shipment, but they can be especially helpful as volume increases. Brokers help you access additional trucking capacity from reliable carriers and can scale as your business grows. That means you don’t have to keep entering into new contracts to add capacity.

Business demands fluctuate, but there is no reason to pay for capacity until you need it. Brokers help you flex up and down as needed, and using one makes sense if you have planned or unplanned surges. If you know you will need to book more loads as the holidays approach, for instance, brokers can help you get ahead of it. Did your latest product suddenly go viral, and you need to ramp up shipping? No problem. Brokers can handle that, too.

As your shipping needs grow, you may not have the time, expertise, or resources to coordinate, book, and track your loads on your own. Since brokers serve as that single point of contact, you can focus on your core business instead of managing logistics.

What types of freight brokers are there?
By and large, there are three main types of freight brokers—traditional, digital, and hybrid. Traditional freight brokers typically interact person-to-person, connecting with customers via email or phone. Digital freight brokers provide self-service capabilities via a digital portal so shippers can secure rates, book loads, and track shipments. Hybrid freight brokers combine the two, offering self-service solutions as well as human support.

The type of broker you choose depends on your needs, but there are a few advantages to selecting a provider with a digital portal. Being able to book or track a load any time of the day or night means you aren't dependent on anyone else's schedule. That can save you time, streamline the booking process, and give you immediate access to the services or information you need.

One other important thing to know about brokers is that they are either non-asset or asset-backed. Non-asset brokers don’t own transportation equipment while asset-backed brokers have their own fleet of equipment. As a result, asset-backed brokers have more control over the transportation process, which can improve reliability and service. They may also be able to offer more competitive pricing and access to capacity, especially in a tight market.

How do I find a broker?
You have a lot riding on your transportation. Inventory is expensive, and today’s consumers won’t tolerate late deliveries, empty shelves, or poor service. You need transportation providers you can trust.

Thousands of brokers are registered with the Department of Transportation, but all brokers are not created equal. So, what should you look for in a freight broker?

Industry expertise: You need a freight broker that understands regulatory requirements and has an established reputation the resources to succeed. Feel free to ask for references or evaluate customer testimonials. You can also check the Federal Motor Carrier Administration's website to ensure your broker is registered.

Access to capacity: Look for a broker with access to an extensive carrier network. That ensures they can cover all geographic areas, find the best carrier for your needs, and arrange alternatives if needed. Brokers should also screen carriers. You don’t want to hand your freight over to just anyone.

Technology: Having access to the latest tech capabilities increases efficiency and automates manual processes. The best freight brokers will utilize technology that allows you to secure rates from your transportation management system or enterprise resource planning system, track your loads, and get fast answers to your questions.

Customer service: In a perfect world, everything moves seamlessly, but sometimes even the best-laid plans can go sideways. Work with brokers who communicate with you proactively and will jump in and act fast if issues arise. Also, look for brokers who will take the time to get to know you and understand your freight needs.

Book loads with confidence
With more than 60,000 trailers, GPS tracking, and 24/7 customer support, Amazon Freight has the assets, technology, and expertise to secure capacity and move your loads at competitive rates. If you’d like to work with Amazon Freight for your freight logistics needs, create a shipper account and get started.
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