Freight Broker Myth #3

Myth  #3 Non Asset Freight Brokers Have Less Control Than Asset Based  

Actually both non asset based brokers and asset based brokers must maintain high standards in order to stay in business.  Most freight brokers require their carriers to comply with strict company policies as it relates to compliance and performance.  For example, experienced freight brokers require carriers to meet the highest safety standards as well as insuring all their carriers have an active carrier authority and are properly insured.  Smart brokers track their carrier's time pickup, on-­time delivery, complaints as well as  freight claims.  If service falls below a certain level, carriers are many times deemed NO LOAD to prevent future issues.  When loss and/or damage of a shipment occurs, shippers may be concerned that they will not be reimbursed for damages during transit.  The fact is, broker are required by the FMCSA to perform due diligence on every carrier including making sure each motor carrier they use has both a valid authority as well as the proper insurance to cover the value of the freight on board in the event of a claim.  This due diligence that brokers are required to perform on every motor carrier they use is a major benefit to doing business with brokers.  Freight brokers must carry at least  $100,000 in contingent cargo insurance to help supplement the primary cargo insurance of the asset based carrier.  

Fact:  Good brokers are masters at staying on top of their shipments.  So a shipper can trust their broker to take care of weather issues, driver sickness, traffic accidents or whatever may delay a delivery.
 

FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.gzIGCq59.dpuf

FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.XVZFpeKE.dpuf

FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.gzIGCq59.dpuf

At the end of the day, freight brokers play a vital and growing role in the world of logistics and will continue to play a vital role in the foreseeable future.  The good news is more and more shippers are using freight brokers to their advantage.  They are learning how freight brokers can benefit them.  As the perception of freight brokers change, the freight broker will have greater   opportunities to convert those few reluctant shippers into customers.  It simply comes down to education, expectation, execution and delivery.  In soliciting a hesitant shipper, if you are able to communicate these benefits and follow through with exemplary service you will gain customers for life.

adapted from: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/

Join us in class or online soon to learn how to be a freight broker and join this fast paced world of transportation.

Moving forward,

Jeff Roach
www.transportationtraining.com 

Freight Broker Myth #2

Myth  #2 Non Asset Based Freight Broker Are Not Cost Effective 

  

It makes sense that if you remove the middle man (the broker) from the transaction it will result in lower prices for the shipper.  When actually a broker may very well get you the best price.   There is power in numbers.  As a result of a freight broker's volume in a given lane, within a given market or with a group of carriers, they are able to leverage that volume to negotiate better pricing.  Equally important is the fact that freight brokers routinely re-­position assets resulting in less empty miles and more profit retention for their asset-based carrier partners.  Because no carrier wants to run empty, back hauls are typically done at a discounted rate, which allows brokers to offer competitive rates to the shippers while earning a small profit for these return trips.  

FACT:  Smart freight brokers are able to leverage back hauls and volume to decrease their cost basis, which allows them to make a small profit while maintaining competitive prices.  

We train our freight brokers to negotiate the optimum deals because we know a well serviced customer will keep using that broker.  It is a mutually beneficial relationship.

Moving forward

Jeff Roach

www.transportationtraining.com