What is a Shipping Broker?

Published: 1/11/2005

The services of a transportation broker provide a trusted intermediary between shippers and carriers, to bring efficiency and cost savings to the operation of finished goods transport.

A freight broker acts as an intermediate in the supply chain, handling the logistics and transportation details between shippers (the people who produce and distribute goods) and carriers (the people who deliver goods from point to point).

The value add of the freight broker is they have experience in matching the best carrier and route at the best value price. They can save you a lot of time and hassles, which equates directly to your bottom line.

The freight broker makes contacts with many carriers in the industry so they have first hand knowledge of how are the most reliable carriers and financially solvent to handle your business accurately.

The benefit to shippers in working with a freight broker are many. They include saving time, money and stress. With many years of experience in the industry, trusted freight brokers bring a wealth of contacts, prerequisites for priority service, financial stability, easier billing and payment reconciliation, and a faster turn-around time due to constant workflow procedure optimization.

The benefits to carriers in working with a freight broker include a constant source of deliveries, stable payment collections, and routine route deliveries.

When considering a freight broker, investigate the number of years in business, licenses, certifications, bonding and trust funds, and industry reputation, as well as customer references.

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