Freight brokers today are seen by many carriers as preferred customers. The broker has the same traits as the shipper. He or she controls the freight and the money. Working with a credible, established and financially sound broker is a good business decision, especially for a small carrier.

Most brokers are sales-driven companies. All they have to market is their service. They develop sophisticated software, excellent reporting and outstanding customer service. They MUST have these things, to stay in business, let alone to be successful.

The small carrier may find himself caught up in the issues of motor carrier service: delivering the freight, buying and maintaining equipment, dealing with drivers, meeting ever-changing regulations, addressing safety. There seems to be little time left for sales, getting to know the clients, discerning their needs or making them feel warm and fuzzy.

Often the dispatchers for a small carrier have great road savvy but not much office experience or customer service skills. They are seldom “sales types.”

Broker/carrier collaborations can bring substantial benefits:

1. Professional, detailed load tendering service.
2. Trained sales support for business growth
3. Customer service that retains business
4. Professionals to do freight booking and pricing
5. Financial resources that allow payment to carrier before shipper payment to broker and driver quick pay
6. Business management skills
7. Risk management personnel
8. Transportation professionals who address asset dedication and equipment allocation
9. Full service marketing programs
10. Technology departments or development constantly staying attuned to the demands of shippers.

Some small trucking companies find that financial resource is the greatest benefit to working with a broker. The transportation broker should be financially positioned to pay the carrier before he gets paid. There may be incentives or bonuses for good performance.

In most cases, brokers have set up a quick pay arrangement that is preferable to bank borrowing or factoring.

When a carrier hauls for a broker with a quick pay plan, the interest is often less and there is no charge back if the broker’s client fails to pay him.

Many brokers also have a driver advance option. There is a small cost to this service because of the extra people and accounting involved, but it’s often the best of all options available.

When working with a broker, a carrier might have the opportunity to purchase or lease equipment specifically to service a broker/client account. This relationship may allow the carrier to assign drivers to specific lanes so the same driver does the same run every day. The cost of the service is reduced, and those savings are passed along to the shipper/client.

Even where dedicated lanes are not created, the high volume brought to a carrier by a credible, established and financially sound broker can reduce empty miles and actually turn around a trucking business that is foundering. The broker can become the sales arm of the carrier.

Carrier/broker collaboration represents the best scenario the transportation industry has to offer. Each side of the equation gets what is needed and each is crucial to the success of the other. The shipper/client is the ultimate beneficiary and the one that sets the bar. If he’s happy, we in our industry are happy. If the shipper is mired in high freight prices or regular service failures, he cannot compete, and everyone loses.

If you have not worked with a transportation broker or third party before, you may want to look into it. Be sure you work with an established, recognized broker with good ethics and you should do fine. Check NASTC’s list of Best Brokers or find out if the firm is a member of the Transportation Intermediaries Association (TIA).