The World Of Freight Brokerage

Through many roles in transportation, I have had the opportunity to work with many different industries, such as scrap metal, chemicals, consumer goods, and now distilled spirits. While I haven’t always been directly involved in transportation, I was always drawn to how transportation and its providers affect a supply chain. My first experiences were with carriers, having contracts directly with them as no broker was involved.

I always thought I knew transportation well enough and could form meaningful partnerships with them and never thought of needing to use a broker. During my time in transportation, I have seen a change take place over a number of years that has taken me from there is no need for a broker to now; there is a place, and many provide valuable know-how in specific industries.

My first experience with a broker came during my time in the chemical supply chain. A major disruption in a critical freight lane required moving production and the need to track everything. While handling most of the new lanes, a co-worker offered his help with one of the sites using a broker he just started using that could help at one of the locations. I was using a carrier I was very familiar with and had a great partnership with; they understood what I needed and how schedules worked at all of the facilities.

The tracks showed up staggered, knowing the site could not load everyone simultaneously, so drivers were not delayed.

 At the end of the project, I determined that I knew what was best and what carried could fill that need. Using a broker just made my life harder, and despite the seemingly never-ending capacity, it was always a hassle.

A New Adventure

This was in stark contrast to what the broker did for us. They knew we needed to be able to load 25 trucks per day, but that is all they worried about, so they sent them all at the same time. I had always wanted to start a new role that allowed me to build a carrier fleet from the ground up. I quickly found that I was in an industry with all kinds of rules that varied from state to state. In a chance email, I reached out to what I thought was a carrier but was their brokerage side of the company. After some initial meetings and test loads, I quickly found out that this was not the same type of broker I had come to know, and a paradigm shift was about to happen.

 "In The Freight World, Those Managing Transportation Must Find The Right Balance Of Freight Brokers And Asset Carriers For Their Business"

They knew all the receivers and had relationships with them, and what they did next was something I did not see coming. They educated me in all aspects of delivering spirits to each state. What came out of that was a great partnership; they showed me that a freight broker could be just like an asset-based carrier with their industry knowledge. We both got great results; they were an up-and-coming broker and built a very nice base while I got to share my knowledge with them and, in turn, help them with their other customers.

In the freight world, those managing transportation must find the right balance of freight brokers and asset carriers for their business. Going with only one provider is an idea that always works well, a conversation I have had with the brokers handling our business and the asset carriers. One of the biggest things I have found with brokers is that they believe they can be everything for you; nothing is out of their realm. While that is a great mindset, it will end up bad for most. I always ask them to tell me what their strong point areas are so they can be successful. The biggest mistake is saying, I will take all of your freight, only to find out there are lanes they just can’t do with their base. You end up letting your customers down, and they question everything you handle. As shippers, we must be clear with expectations and resist thinking that one broker can do it all. The only thing that does is set both parties up to be disappointed. After a few years of dealing with brokers, I have developed a very healthy respect for what they do; I know many spent their day chasing freight, but many know what they are good at and focus on exactly that.