Truck cargo brokers match shippers with freight services, guaranteeing the best rate for their clients and earning a commission. Small businesses benefit from volume discount rates and time-saving services. Brokers offer short-term contracts and may accept LTL shipments.
Truck cargo brokers are professionals who act as intermediaries between a shipper and a freight service. This type of broker seeks to match shippers who have at least a full truck load to transport with a freight line that runs regular routes to the destination. At the same time, the broker seeks to guarantee the best possible rate for his client, earning a fixed fee or a commission for brokering the deal.
Small businesses sometimes benefit from engaging the services of truck load brokers. While many shipping companies offer excellent discounted rate programs for large companies with substantial shipping needs, smaller companies that ship goods more sporadically often have to pay standard retail rates. By working with a broker, who often have volume discount rates in place on many shipping services, it is possible to really reduce shipping costs for even the most casual shippers.
Another benefit of using truck freight brokers is that there is no need to invest time and resources in searching for the best freight deals. Brokers are always on the lookout for more cost-effective and timely ways to ship goods to their customers, which means the business can simply ensure the shipment is ready for collection and focus on other elements of the business operation. When a better deal comes along, the broker will typically advise the customer of a lower rate through a new carrier and provide enough information for the customer to decide whether trying a new carrier is a good idea.
In many cases, truckload brokers will not require clients to sign long-term contracts. This means that a smaller company that will only need shipping services for a few months each year will not be committed to paying for services that have never been used. Even when a contract is required, most brokers tend to work with shorter term contracts, usually no more than a year or two. This is really to the benefit of both the broker and the client, as changes can occur in the shipping industry that can affect shipping overheads and adversely affect the client or broker.
While most truckload brokers focus strictly on full truckloads of goods, others will accept what is known as LTL, or less than truckload, shipments. In this case, the broker will usually look to combine shipments from multiple customers that go in the same general direction, while still making it possible to negotiate discounted shipping rates with a variety of carriers.
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