How a Freight Broker Can Help Carriers

Whether you’re new to trucking or a seasoned pro, working with a freight broker can be a game-changer for your business. Freight brokers can help you find better loads, save time, and improve your earnings. 

To help you decide if partnering with a freight broker is right for you, we’ve outlined what their job involves and how their services can help you make more money.

What is a freight broker?

A freight broker acts as the intermediary to get cargo moved from end to end. They don’t physically handle the cargo themselves, but they manage the entire transportation process. They find the right carrier for the job, negotiate rates, assign the shipment, track its progress, and ensure it arrives at its destination on time and in good condition.

A freight broker’s primary job is communication. Shippers like working with them because brokers help ensure their goods arrive safely and on time. That means shippers don’t have to find carriers on their own, handle route logistics, negotiate rates with drivers, or track their freight.

For carriers, especially those new to the industry, working with a freight brokerage opens a lot of doors. Established brokers usually have strong connections with shippers and a steady stream of freight to move. Brokers are also experts at optimizing routes, which helps carriers avoid deadhead miles.

What does a freight broker do?

Behind the scenes, a successful freight broker does much more than facilitate communication. Freight brokers use their skills and experience to match shippers with the best carriers to meet shipment deadlines.

Any freight brokerage needs deep industry knowledge. They need to understand the larger trends that impact carriers and shippers, like supply chain instability and rising fuel costs. 

Other essential functions of a broker’s job include:

Vetting and onboarding carriers

Brokers know that when they match a shipper with a freight carrier, their reputation is on the line. So it’s not just about finding carriers–it’s about finding dependable drivers that are safe, reliable, and compliant. That’s why brokers vet carrier credentials, verify insurance coverage, and review backgrounds as part of the carrier onboarding process.

Monitoring carrier compliance

Brokers know what’s legally required for freight contracts, and they are responsible for ensuring carrier compliance with rules and regulations. Depending on the type of freight being moved, there may be numerous legal requirements brokers need to monitor.

Sourcing carrier capacity

Securing a reliable network of carriers is only half the battle for brokers. They must also stay vigilant about available transportation resources, or capacity. Capacity is the maximum number of shipments carriers can handle within a specific timeframe. This depends on factors like the number of vehicles in a carrier’s fleet, driver availability, route efficiency, and how much cargo they can handle. 

If a broker fails to consider these capacity limitations, they risk shipment delays. Delays can erode relationships with shippers. This constant monitoring of capacity ensures smooth operations, happy shippers, and a thriving brokerage business.

Negotiation

While it’s in a freight broker’s best interest to get the highest possible rates from shippers, shippers also have expectations about what they should pay to move freight. The negotiation process needs to strike a balance: delivering a competitive rate for the shipper that still allows the broker to cover carrier costs and maintain a healthy profit margin to keep their business running smoothly. This often involves understanding the market rates for similar shipments and leveraging their network of carriers to find the most efficient transport option.

A good freight broker knows where their carriers operate, the rates they’re looking for, and their equipment type. Cross-referencing all these things helps brokers choose the best carrier for any job.

A freight brokerage needs strong communication and negotiation skills to navigate rates, terms, and payments involved in the shipping process. This can result in long-term partnerships with shippers and carriers and a positive reputation in the transportation industry, resulting in more business opportunities.

🎙️Want to hear the inside scoop on ways to unlock more profits & improve broker relationships? Listen to our interview with Tyler Johnston from Mercer Transportation on Freight Nation to learn more. 

How do you know when you need freight broker services?

There are three primary reasons for a carrier to connect to a freight broker:

1. Establish your business. It can be tough for new carriers to find opportunities because they haven’t had time to prove their reliability, and shippers may be hesitant to work with them. A freight broker offers an easy way to start building a reputation because they already have that credibility with shippers and are willing to work with newer carriers to find the best solution for every job.
2. Save time. Handling all the relationships with shippers directly can be time-consuming and can limit your available driving time. A freight broker manages all of the planning and logistics, and they can also find more of the loads you prefer.
3. Find new business. Freight brokers may have access to a wide range of jobs that carriers might otherwise not know about, including high-priority deliveries that offer premium rates.

How do you choose the right freight broker business?

Here are some considerations when evaluating freight broker businesses:

• How much experience does the broker have? For new companies, did the owner previously work for another brokerage?
• Do they have a broker license? (Never hire an unlicensed broker).
• Does the broker have a surety bond? This is a legal requirement, and it protects shippers and carriers from financial losses should the broker violate federal regulations or fail to meet the terms of a contract.
• What’s their process for finding shipping jobs? Most good freight brokers don’t just rely on connections — they also use tools like broker load boards to build new freight industry contacts and find the best shipments.
• Do they provide freight forwarding services? Freight brokers might also have their FMCSA operating authority to store goods in their own warehouses and move them for shippers. That opens up more opportunities for carrier partners.
• How will they contact you when work is available? Consistent and reliable communication is important.
• How far in advance do they plan? Freight brokers might have opportunities well in advance, especially for high-demand periods like harvest season.

Are you ready to find a freight broker?

Ultimately, a freight broker can give you a huge advantage as an owner-operator. They can help you reduce costs, improve efficiency, and develop relationships with regular customers who will provide you with a steady income.

Your peers may have recommendations for brokers, so it never hurts to ask around. But if you want access to a wide range of trusted brokers (and shippers), the Truckstop Load Board is your best option.

Truckstop gives you real-time rate insights, multiple load-search filters, and tools to help you negotiate the best rates. Connect with the Truckstop team today to talk load board.