Are freight brokers in high demand? Well, With technology comes challenging demands. The trucking industry is no exception. Consider these two things.
These two things are able to make trucking safer, but they also put pressure on the bottom lines of trucking companies, especially small trucking companies.
In addition to this, two other issues that are out of the hands of business owner and regulators continue to have an affect on trucking. They are:
- Unpredictable fuel prices (notwithstanding the COVID-19 crisis which sent oil prices plummeting)
- Shortage of qualified and reliable CDL drivers
These four obstacles make it imperative that trucking operations become more strategic in their thinking and modeling. Gone are the days where you could make a few phone calls and get things done.
Business must be done a different way.
Enter The Freight Broker
An important step in finding an alternative business model that keeps a trucking business profitable with exposure to the most shippers is to hire a quality freight broker.
A freight broker (also known as a load broker, truck broker, or transportation broker) matches those shippers with your trucks. They manage the freight lanes that are needed in order to be successful.
The importance of a quality freight broker cannot be overstated. Many trucking companies have been inundated with sales pitches from bad brokers.
Many brokers just want the quick buck, and they have an inability to deliver on promises. It is hard for shippers, carriers, and others involved in the logistics process to sort through the inconsistent service, so if a freight broker can actually provide quality, professional service, transportation companies will pay a good rate.
The biggest problem with building that relationship is getting past being burned. However, it is necessary for owners to put that bad experiences behind them. Consider that 71% of all freight is moved through trucking.
As competitive as the trucking business is, it is imperative that loads get to their new location on time. It’s also nearly impossible to manage that amount of business by going directly to the shippers, especially with EDI systems. However, trucking owners didn’t get into the business because they love systems. But brokers are good at systems, which is what makes freight brokers in high demand.
What Makes A Good Freight Broker
Maybe you are a shipper or receiver. Maybe you are wanting to get into the broker business. Whatever your reason for reading this, you will need to know what makes a good freight broker.
Good freight brokers will:
- Have the ability to coordinate trucks to be in the same geographic area when possible.
- Build consistent freight lanes that help you build relationships with shippers and terminal locations.
- Assist the truck drivers with pickup, delivery, and everything in between.
- Provide top notch compliance and IFTA consulting. Brokers aren’t attorneys, and shouldn’t be relied upon as if they were, but a good load broker will help you stay within the law.
- Help your drivers with load movement.
- Work collaboratively either with members of their own team or strategic partnerships. They also will know who to talk to for any problem that comes up.
- Build solid and reputable relationships within the trucking business.
- Use load boards effectively.
- Navigate business credit, both with their customers, and their customers’ customers.
- Focus on their customers’ needs, no matter the revenue that each particular customer brings.
Do Small Trucking Companies Need To Avoid Freight Brokers?
A common misconception is that small trucking companies should avoid freight brokers. I disagree with that assessment, simply because small businesses are doing more work than they have time for.
Why not be willing to take on a broker who can ease the work burden that the business owner carries around from everything else that comes with being an entrepreneur.
A freight broker will take on the work of finding shippers and shipping lanes, and will keep a company within the boundaries of the law. I have never met a small business owner that loves solving compliance issues.
What Makes The Broker-Client Relationship Click?
While a good freight broker can make any client profitable, there are some things that make the broker-client relationship as rewarding as possible.
- If a broker is focused on a particular niche, the business owner can be confident that the broker will have the right relationships within the industry to make the shipments as efficient as possible.
- If a broker can help manage trailers, it will increase productivity and reduce expenses.
- Combining forces with trucking companies in similar industries that you work well with is something a freight broker can help with. This will also increase productivity and lower expenses.
- Clear communication on how and when the broker gets paid, along with an agreed-upon Scope of Services is a must.
How To Become A Freight Broker
If a freight broker is something you think you’d be good at, the good news is that it is pretty simple to get into the business.
You’ll need a license and a desire to learn the business. You will also need the patience that comes with starting a business.
However, freight brokers are in high demand, and there are good sources that can help you on your journey. My recommendation is Freight Broker Boot Camp. This program will help you apply for your license, teach you how to reduce startup costs, teach you how to introduce yourself to the players in the game, and generally show you the ropes of the business.
Freight Broker Boot Camp is a low cost option to learn all there is about the load broker business, and it comes with a 60-day money back guarantee. So if it’s not for you, you can get your money back.
Relationships Are Key
So why are freight brokers in high demand? The key is relationships. If a broker is good at his or her job, and they know how to manage people and money, a relationship can be built.
From there, both brokers and their clients can build profitable businesses.