Freight Brokers: How to Choose the Best Partner for Your Business
Did an influx of goods arrive and now you’re trying to source a freight broker to handle the shipping from point A to point B? Businesses with increasing transportation needs are finding savings in time and resources through partnering with a freight brokerage that can handle the details. At Sparrow Logistics, our goal is to help provide shipping solutions for all our client’s needs. Our team strives to positively impact each client, carrier, and employee that comes alongside Sparrow.
What is a freight broker?
So, what exactly does a freight broker do? Very simply, A freight broker is a person or company that partners together a shipper who has goods to transport with an authorized motor carrier that wants to provide a service.
Robert A. Voltmann, executive director and CEO of the Transportation Intermediaries Association describes freight brokers as, “Transportation intermediaries who leverage their knowledge, investment in technology and people resources to help both the shipper and carrier succeed.” Brokers provide a valuable service to both parties. Carriers benefit through making commissions by utilizing their trucks to transport the goods. Where the shipper is helped by their goods getting transported by a reliable, trusting carrier. Although freight brokering is not new within the trucking industry, there are many advancing technologies in the industry that make utilizing a freight broker the most effective business solution. Sparrow Logistics is redefining what a transportation broker is through solving problems and keeping the promises we make.
When do you need a freight broker?
You spend more time getting orders shipped out
You have orders outside the reach of your local/region direct asset carriers
You are experiencing a high rate of tender rejections on contract freight
You have trouble securing consistent capacity
Time is money and if you are not being effective with how you are spending it, it can result in a large cost to your business. If you resonated with any of the above statements, you may benefit from working with a freight broker to handle the logistics of your shipping needs.
Here are five benefits to using a freight broker:
Saves time and resources – you won’t spend money on training, investing in equipment, etc. when you partner with a broker who supplies these services.
Flexibility – need an order moved now or did another broker drop the ball? Our team is available to help you 24/7.
Knowledge and expertise provided –our team of experts provides you with the information you need to move forward.
Existing business relationships – our expertise lies in building lasting relationships that help benefit others when able.
Being part of a partnership – hiring a freight broker builds a relationship. It allows our team to learn your business goals, vision, and pain points to deliver solutions on. We are passionate about helping you achieve your business goals; let’s accomplish them together!
Now, what should you consider when choosing the best freight broker?
Now, the idea of utilizing a freight broker may be a great benefit to your company but you want to ensure you’re working with the best. There are many brokers out there who only care about making money, so it is important to partner with the one you can trust. At Sparrow Logistics, we believe that honesty, transparency, and positivity are the recipe for providing an incredible experience. This experience sets us apart from the competition.
Other important considerations when choosing the best freight broker is:
The first consideration you should look at is the broker has a federal property broker license from the Federal Motor Carrier Safety Administration ensuring the broker complies with business practices and protects you from any fraudulent actions of your broker. Due to the implementation of Congress’s new MAP-21 legislation, the Federal law requires anyone arranging transportation for compensation to have a federal property broker license issued by the Federal Motor Carrier Safety Administration (FMCSA). Be wary of motor carriers who broker loads without broker authority. Before you select a new freight broker, make sure they have the proper authority, license, and especially the new $75,000 bond.
Modes of Transportation:
Partnering with a broker who can handle your needs is important. Check what modes of transportation services are offered to fit your needs. Sparrow Logistics specializes in nationwide shipping with services offered in expedited delivery service, dry van or temperature-controlled, heavy haul transport, power only, LTL or partial truckload, loading and unloading services, hazmat and tanker endorsed, vehicle hauling solutions, and other shipping solutions.
Carrier Vetting Process:
Sourcing, vetting, and employing exceptional carriers is a top priority at Sparrow Logistics. Our team’s network of reputable carriers goes beyond expectations to provide an exceptional service to our clients. Questions to ask a broker to see how in-depth their vetting process is:
Amount of carriers' liability for the required amount of cargo
Proper and up-to-date equipment
Ability to accommodate special handling requirements (e.g. temperature-controlled trailers, team drivers, proper permits, etc.)
Ability to comply with the client’s desired schedule.
Insurance and Claim Assistance:
Ensure you ask the freight broker about their assistance process with insurance options and assistance with insurance claim paperwork if needed. Sparrow helps to facilitate the process of submitting claims and saves time when fixing damaged or lost shipments.
Communicating with Clients:
Our clients know when it comes to shipping communication is the driver for successful relationships. Ask your freight broker about their communication process: how do you stay up to date on the shipment status and any possible delays? Communication will differ from every broker you work with, finding one you trust and can deliver on the promises they make is essential. At Sparrow, we do everything in our power to deliver on every service and price to which we commit.
Freight Tracking:
As technology continues to advance in the industry, it is important to look at how a broker tracks your freight throughout the transit. Tracking systems allow you to immediately communicate problems with cargo theft, delays with (weather, road conditions, port closures). We personally dispatch drivers to set up expectations and details again after booking, setting the expectations that Sparrow will track and trace the shipment to predict and communicate complications prior to the shipper.
Experience in Industry:
Partnering with a freight broker who understands the business practices and is an expert in the transportation industry is key to success. Our team has over 30 years of experience in the logistics and transportation industry. This expertise allows us to provide you insight into pricing and current trends, safety requirements, and any challenges that may arise when shipping your freight.
Financial Stability:
Freight brokers should be financially stable and have the funds to pay their carriers. Financial stability protects the shipper in case a broker were ever to go out of business and payment was still needed to the carrier. This can result in a larger expense at the shipper's cost because the broker does not have the necessary funds to run the business.
Reference Check:
This may sound like an obvious one, but many people overlook it. Integrity and reputation are important for any company, especially in the transport business. A company that has successfully carried out different operations for a prolonged period is more likely to be trustworthy. Take the time to talk to a couple of their references, preferably from your geographic area and industry. Upholding ethics and being part of different integrity programs are also signs of a reliable broker.
Look for Enrollment in Integrity Programs:
Licensed freight brokers who belong to the industry trade groups such as Transportation Intermediaries Association (TIA) are required to abide by a strict code of ethics when dealing with shippers and carriers. Choosing a broker who is publicly committed to integrity is always an effective way to avoid problems. In an industry where lack of communication with clients and carriers is still tolerated, we believe that honesty, transparency, and positivity is the recipe for providing an incredible experience - every time.
Make sure they fit your needs:
Utilizing a freight broker is not a necessity in the shipping industry, but many shippers prefer to because of the benefits of building a long-term partnership with a freight brokerage. Having a broker who understands your business goals, pain points, and the shipping industry is key to saving time and money. A freight broker works for you and on your behalf, so your success is important to them.
At Sparrow, we are redefining what a transportation broker is. That starts with coming through on everything we promise. We do everything in our power to deliver on every service and price to which we commit. Our culture allows our employees to thrive in their career paths and have fun along the way. Interested in receiving a free quote or getting connected with our team? Contact us today!