Truck load brokers are individuals or businesses responsible for connecting companies with goods that need shipping with companies that transport freight. These brokers do not simply refer businesses to shippers for a fee; they serve as liaisons between clients and shippers by negotiating fees and schedules.
Skills and Credentials Needed
Truck load brokers should be very knowledgeable about the shipping industry, including how to negotiate contracts, how to calculate shipping costs and how to track goods from the time a shipment is loaded until it reaches its destination. They should be able to produce the appropriate credentials.
Individuals engaged in truck load brokering should have passed training courses that cover all aspects of the truck load brokerage business. Truck load brokers must be licensed by the Federal Motor Carrier Safety Administration. A broker must also have a surety bond, which is insurance that protects all parties involved by covering any losses that may occur if there are issues that hinder completing the shipment by the contract.
How They Help Businesses?
Whether the client is a small business requiring periodic freight movement or a large company with daily shipping needs, brokers can handle the logistics.
An Example of How a Trucking Company Serves as a Broker
Trucking Company A has all of its vehicles scheduled to transport goods but receives a request from a client that needs to move freight. Trucking Company A can negotiate with another shipper (Trucking Company B) to transport the goods. Trucking Company B would pay the broker (Trucking Company A) in this case a commission.
Trucking Company A benefits because the client’s shipping need is met, allowing the company to retain the client’s business. Under such circumstances, as long as the shipment makes it to the destination as planned, the client will be satisfied. The next time the client has a shipping need, if Trucking Company A has vehicles available, it can handle the shipment. If trucks are not available, Trucking Company A can again act as a broker and find another carrier to handle the freight.
Thus, trucking companies can use the broker model to help meet client needs and retain important business for the future.
