What Exactly is a Freight Broker?

The past few years in the transportation industry have been a whirlwind of unpredictability and uncertainty. The COVID-19 pandemic has caused a ripple effect that’s affected manufacturing, product availability, inflation, and available capacity.

As with many industries, what worked previously may not work today. As early as 2019, you may have had a contract with a company and had no worries regarding booking capacity and getting all your product on the road. However, what do you do when trucks you previously relied on cannot ship your freight when you have immediate shipping needs?

The answer is simple . . . look for an experienced freight broker.

Freight brokerage is often transactional and provides a mediator for delivery between a shipper and your product’s final destination. A freight broker will work directly with their established carrier network to pair you with a transportation solution that best fits your needs. They’ll eliminate the need to work directly with a carrier and waste time managing multiple carrier relationships. This allows you to focus on what’s most important to your business: your product.

Right mode, right lane, right time

Common freight brokerage solution modes include Dry Van FTL, Refrigerated Freight, Flatbed, LTL, Intermodal — such as railroad and drayage — and Specialty Freight Services. When signing a contract with an asset-based company, your modes of transportation may be limited to the assets they have in their fleet.

For example, not all companies can handle flatbed or refrigerated shipping. With a freight broker, they often have a carrier network that enables them to provide shipping for specialized loads or lanes. Because brokerage is often transactional, they’ll have capacity available for when a customer needs it at that moment. These days, shippers often find themselves with freight needing to be moved immediately and pressured to find capacity on-demand.

Capacity on demand

Due to the COVID-19 pandemic causing a ripple effect throughout the supply chain, there is a shortage of available truck capacity. It can be challenging to secure a contract or even transactional shipping capacity. Brokers can navigate their network to secure capacity on-demand that aligns with the shipper’s needs.

Experience and visibility

A good freight broker will have a staff with extensive supply chain experience. They’ll be able to work directly with a shipper to develop an efficient solution that fits their specific needs while maintaining the lowest possible cost. A good freight broker will also provide visibility of your shipments, allowing you to track your freight throughout every step of the delivery process.

Cheaper isn't always better

Let’s face it. Everything is expensive right now. It may seem appealing to cut costs, but brokerage may not be the place to do that. Finding a trusted broker who can ensure proper visibility and delivery of goods On-Time and In-Full (OTIF) can save you both money and headaches in the long run.

The best freight brokers will use data to provide market intelligence and proactive communication to provide full transparency and visibility. Fines for missing OTIF deliveries, damages, and missing products can add up quickly.

It’s important to weigh what factors are important to you when choosing a reliable freight broker. In addition, having backup plans is paramount. Unfortunately, today’s market is volatile and things don’t always turn out as expected. Having multiple brokers in mind in case things fall through can save you from missing shipments and headaches.

What makes GEODIS Capacity Solutions different?

GEODIS Capacity Solutions (GCS) is an experienced freight broker with a carrier network of 25,000+ which has capacity on-demand to cover any load or lane.

What sets us apart is our customer service. We have an individual expert dedicated to each account and continuously look to improve your brokerage experience. Our goal is to help customers gain insight into their supply chain as well as help predict and make internal changes to ensure stability in such uncertain times.

We utilize our top-tier TMS data to provide insight into their money down to the line level. It allows our customers to make adjustments and improve operations on issues such as dwell time and detention based on our data and expertise. We find it essential to understand how to optimize your own business and stay abreast of current market trends.

Connect with a GCS expert today to secure freight capacity and learn how to help optimize your business despite current uncertainty in the transportation industry.

Author: Evan Glick