Carriers: Here's How Working with a Freight Broker Can Help Your Income Stream

As a leader in a motor carrier company, you know how to look for patterns. A lot of things change within the supply chain from one day to the next. 

Fuel prices go up and down. Shipments change based on supply and demand. And while you know what to look for, you also know that not everything is predictable in this business. 

No matter what happens in the world of shipping cargo, you want to make sure that your business thrives and makes the most of its income stream. 

That's where freight brokers come in. A freight broker connects shippers with carriers, and in the process, the freight broker helps the supply chain run as smoothly as possible. 

As a result, carriers can increase their income streams. Here are just a few reasons why. 

Keep Trucks Moving and Avoid Deadhead Miles with a Freight Broker

Maximizing your company's income isn't just about making money. Cost reduction plays a large part in the equation, too. Finding cost effective measures can help your business grow so that you can keep providing the best service for your customers. 

A good freight broker will understand this concern when it comes to truck transportation. 

For example, we recently covered the problem of deadhead miles and why empty loads are so costly for carriers. Among other things, deadhead mileage forces you to spend money on fuel and maintenance, even when you're not making any money off of your miles. 

By getting rid of empty miles, you can reduce transportation costs and increase your income stream at the same time. 

One of the benefits of working with a freight broker is that you can avoid deadhead miles. A good freight broker has enough connections with shippers that you can keep your trailers full. 

Freight Brokers Work with a Larger Customer Base 

Speaking of connections between shippers and freight brokers, your freight broker can help you increase the amount of customers you work with on a regular basis. 

Having a large transportation network can benefit everyone involved in the supply chain, including those who are directly involved in the shipping process. 

You may find yourself working with a wider scope of clients than you ever imagined. And instead of making a bunch of cold calls and finding those shippers yourself, you can let your freight broker facilitate those connections for you. 

You'll save time in the process, which will let you put your focus into growing your business. 

Freight Brokers Help Motor Carriers Establish a Local Presence 

Partnerships make a big difference in the freight industry. Every time a freight broker connects a shipping company to a motor carrier, they create the potential for a long-term partnership. 

Let's say that you find a broker who gets to know your motor carrier company. They learn about your service, including your transport methods, your lanes, and what kind of cargo you carry. 

If that shipper enjoys working with you and thinks that you're the ideal carrier for their needs, then they'll want to work with you in the future. 

Through this process, freight brokers (or freight forwarders in the case of international carriers) can help carriers establish their reputation. 

Good Freight Brokers Provide Payment Security 

Let's say that you find a shipper on your own time. As a carrier, you provide the agreed-upon service. You make sure that the freight arrives safely. 

You've done your part of the arrangement, so now all that’s left is for the shipping company to pay you within the right time frame. 

But what if the company doesn't do that? 

Now it's up to you to track down your payment. In the process, you lose valuable time that you could have spent elsewhere. 

The right freight brokers, however, can prevent this situation. Some freight brokers make paying carriers a priority even when the shipper is unable to pay for the load. 

This is why it's important for each motor carrier to vet brokers before making a commitment, though. Legally, a broker is not obligated to pay the carrier until the shipper provides the payment. 

When you look at companies in the freight brokerage industry, find out about their credit rating. Companies with excellent credit are able to pay carriers while extending credit to the shipper. Also, look for companies that are known for prompt payments. 

At Pearce Worldwide, for example, we always make sure that our carriers are paid on time. 

Get Direct Connections to Shippers through a Freight Broker

While freight brokers do work with load boards, working with a good freight broker means that you also get direct connections to shippers. 

That said, this is another reason why it's important to choose the right partner when you look at brokers. 

Not all brokers are interested in providing the best solution. Some only want to save time for themselves without considering the needs of their clients, so they'll reject direct connections and only post on load boards. 

On the other hand, a great freight broker takes time to get to know both their shippers and carriers. At Pearce Worldwide, when a shipper has a load that we know one of our trusted carriers can handle well, then we'll make that connection ourselves. 

We consider the best shipping solutions for clients, including the cargo that our carriers specialize in, which lanes they run, and whether they're known for on-time delivery. 

Take some time to see what a motor carrier service should look for in a freight broker. Once you find the best freight broker for your needs, you can find cost savings, increase the amount of loads you take on, and make the most of your business. 

If you want to learn more about what a freight broker can do for you, feel free to get in touch with us at Pearce Worldwide.