5 Qualities to Look For in Your Next Logistics Freight Broker

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Shippers, transporters, and supply chain management often need a helping hand from industry experts that offer outside perspectives and additional resources and assets. Often referred to as logistics freight brokers, these experts can make the difference between breaking even, ending up in the hole, and making a profit for those with truck driving as a career. Brokerages are big business and are a driving force in today’s modern supply chain  — both domestically and globally. According to Verified Market Research, the “US Freight Brokerage Market size was valued at USD 1.164 Billion in 2020 and is projected to reach USD 13.78 Billion by 2028, growing at a CAGR of 36.2% from 2021 to 2028.” Understanding how freight brokerage works and what benefits shipping managers and transportation professionals can enjoy, it is easier to see why freight brokers are in such high demand, especially during peak driving seasons

What Is a Logistics Broker?

In their most simplistic form, a freight broker is either an individual or a company that acts as a go-between for carriers and shippers to help negotiate contracts, find loads, and build relationships. The logistics freight broker’s money comes from the negotiations between the carrier and shipper and is figured into the final contract terms. Knowing how freight brokerage works can make it easier for shippers and carriers alike to coordinate and collaborate with the right broker for their specific needs.

How a Freight Brokerage Works

Transport service providers and shippers contract with logistics freight brokers to help streamline the movement of the goods throughout the complex and ever-changing supply chain network. Brokers operate by filling several critical needs for shippers, including:

  1. Offers advanced supply chain technology and connectivity that streamlines the entire supply chain and makes every aspect of shipping and transportation easier with automated systems and tools.
  2. It saves on freight rates and fees that are often levied against both shippers and carriers, saving them money and allowing them to pass on savings and better shipping rates to their customers.
  3. It improves overall adaptability and scalability end-to-end and makes it easier for shippers and carriers to coordinate, collaborate, and support each other through challenging market conditions.
  4. Access tools and financial support that make it easier to understand and take advantage of supply chain trends and better prepare for potential highs and lows with valuable data and insights.

These points can help shippers and carriers better understand what a logistics broker is and what difference they can make.

What to Look for a Logistics Freight Broker

Rather than shippers and carriers spending countless hours chasing each other down for rate bids, price negotiations, and contractual agreements, the broker can handle all logistics on their behalf and help develop a sound business plan. When shippers and carriers know how freight brokerage works, they can easily take advantage of the accurate logistics services brokers offer if they know what to consider:

    1. Technology-rich resources and innovative platforms come with easy onboarding and user-specific customizations to fit individual trucking companies’ needs.
    2. Fair to drivers and focused on establishing mutually-beneficial partnerships by offering a clear view of pricing structure and competitive pay to the best drivers.
  • Strong networking capabilities focus on expanding carrier and shipper talent pools and offer all parties more accessible access to pre-vetted shippers and carriers of choice.
  • Understanding of market dynamics and providing network optimization and real-time data resources that help manage peak season and capacity crunch-related issues. 
  • There is a strong reputation for on-time, in-full deliveries and custom shipping services that are fast and affordable during times of market volatility and in the face of disruptions.

Logistics freight brokers make it easier to span the gap between freight carriers and shipping companies. They keep these two vital ends of the modern supply chain network connected and make it easier for them to collaborate and keep things moving as smoothly as possible.

Establish a Better Transportation Strategy by Partnering With AMX Logistics

Brokers are more critical than ever, especially during these times of peak season highs, challenging disruptions, supply chain bottlenecks, capacity issues, and driver shortages. Knowing how freight brokerage works and what services a logistics freight broker can offer can help shippers and carriers to make the most of the good times and more easily weather the bad times in the modern-day market. A good broker makes it easier for multiple team members and third parties to coordinate, grow, and succeed. Contact AMX Logistics today to find out what is a logistics broker and what they can do to help your company succeed in 2022 and beyond.

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