What is a Freight Broker?
What is a freight broker and what do they do? In simple terms, a freight broker is a liaison or middleman between shippers and authorized freight carriers. Instead of shippers working directly with carriers, the freight broker determines the needs of both the shipper and the carrier, then works to negotiate a deal between the two, ensuring the cargo is delivered safely, and on time.
Freight brokers are an integral part of the trucking industry, leveraging their experience and resources to connect shippers and carriers, negotiate deals between the two, improve delivery times improving delivery times, prevent freight damage, and increase supply chain efficiency.
Freight brokers use their negotiating skills, knowledge of pay rates, and freight lanes to broker agreements that benefit both the shipper and the driver.
Although freight brokers earn a commission for brokering agreements, their ultimate goal is finding the ideal balance between what shippers pay and freight carriers earn. Shippers often prefer to work with freight brokers because it offers them one point of contact throughout the shipping process, sparing them from negotiating with individual carriers, planning routes, and tracking their freight. Carriers like working with freight brokers because it helps optimize routes, minimize deadheads, and earn more money in a shorter time frame.
How to Choose a Freight Broker
There are a few things to take into consideration when looking for a freight broker. First, how long have they been in business? Are they stable and experienced?
Typically, the longer a brokerage has been in business, the more direct shipper and carrier contacts they have and the more experience they have brokering mutually beneficial agreements between the two.
Are they licensed by the FMCSA? Registration with the FMCSA means the brokerage is also bonded and insured. Using only brokerages registered with the FMCSA protects both shippers and carriers against fraud and damages.
Are you a HotShot owner/operator with your own authority but still not sure whether or not a freight brokerage is right for you? The experienced dispatchers with JF Express Fr8 work directly with shippers and carriers, working hard to find the best loads and freight lanes. JF Express Fr8 dispatchers do not get paid unless you do, making them highly motivated to find the highest paying freight available.
If you are a HotShot owner/operator interested in a career opportunity with JF Express Fr8, check out our HotShot trucking jobs page for more information.