Six Common Freight Agent Struggles and What to Do About Them
/
two people in business suits discuss a complex chart on a whiteboard
Freight agents play a critical part in the freight brokerage world, and they have lots of growth opportunities. Being a freight agent has plenty of benefits, especially if you're highly motivated and need a lot of flexibility in your job.
Even so, life as an independent contractor comes with challenges. Add those challenges to the ones that are inherent to the trucking industry, and you'll need to get creative fast.
If you're an independent freight agent, you're probably all too familiar with the challenges we've listed below. Here are some of the most common difficulties that freight agents face, plus what you can do about them.
Common Freight Agent Challenges
a jenga tower with several pieces removed
Independent freight agents work in an unpredictable industry. As a freight agent, you know that thinking on your feet is the rule, not the exception.
Here are some of the most common challenges freight agents face as entrepreneurs in the trucking world.
1. Fluctuating Freight Rates
Fluctuating freight rates can create all sorts of difficulties for independent freight agents. You do what you can to predict rate changes, but so many factors influence rates that it's hard to keep up.
Factors like supply and demand, the cost of fuel, and market conditions can make a major difference.
As a result, you may notice significant income changes from one quarter to the next, and it can be difficult to predict future financial needs.
2. Double Brokering
Double brokering has become a huge issue for agents in recent years. Imagine contracting a load to a carrier only to find out that this carrier isn’t who they claim to be. For instance, they might broker the load to another carrier illegally without your knowledge or permission. They may even use the identity of another, legitimate broker when they do so.
Double brokering can prevent you from doing business accurately and effectively, and it can also damage your reputation. If the innocent carrier figures out that they were scammed, they may find you and bill you for the load. If you’ve already paid the fraudulent broker, this could mean that you pay for the load twice.
3. Carrier Selection
Finding the right carriers is one of the most important skills you'll need as a freight agent. Even apart from double brokering, this skill is a challenging one. Your carriers should be reliable, safe, and consistent. And of course, you'll want to work with carriers who can provide the right shipper solutions.
Making the wrong choice will cause delays and dissatisfied customers.
4. Market Competition and Customer Relationships
Like many freight brokers, a lot of freight agents enjoy the highly competitive nature of the logistics industry. Still this competition does create challenges. Freight agents have to find ways to stand out.
Once you've found clients, it's also important to maintain your customer base by keeping strong customer relationships.
5. Technology and Automation
We've spoken before about new technology in the trucking industry. While there are some exciting changes on the horizon, these changes also require time and resources to adjust.
When you're an independent contractor, it can be tough to keep up with all of these changes, especially if you're running your freight agent business without the right support.
6. Financial Management
When we discussed the skills that freight agents need, we mentioned the ability to pay attention to details. Your financial management is one of the most important places where this skill comes into play.
Between invoicing shippers, staying on top of your expenses, and managing your cash flow, you have a lot on your plate when it comes to staying successful as a freight agent and avoiding financial instability.
How to Choose the Right Freight Broker
two “one way” signs point in perpendicular directions
Fortunately, you can mitigate these challenges by working with the right established freight broker. Here are just some of the ways that solid freight brokers help freight agents stay on top of their game.
1. Access to Resources for Freight Agents
One of the most beneficial parts of the broker and freight agent relationship is the access to resources, but not all brokers provide the same ones.
Truck brokerages often have access to substantial resources that freight agents may not be able to access easily. When a freight agent connects with the right freight broker, they can start making the most of their business practices.
As you look for freight brokers to help your business grow, pay close attention to the resources that they have to offer, and don’t settle for a brokerage that doesn’t provide what you need.
2. Steady Stream of Freight Agent Business
Freight agents can gain a much more consistent flow of opportunities when they partner with certain freight brokers.
One of the biggest benefits of freight brokers is that many of them have established long-lasting business relationships.
When agents partner with these freight brokers, they get more networking options, opportunities for securing customers, and chances to save time and effort by leveraging this network.
Look for signs that a freight broker has the right connections. These signs include being in business for many years and having a solid reputation in the industry.
3. Helping Freight Agents with Technology Support
Freight brokers usually have complex transportation management systems, plus access to load boards. A freight agent working with a freight broker can use this support to streamline operations, improve business efficiency, and stay competitive in the industry.
Still, some brokers have better tech access than others, and some are especially adept at using it. When you talk to potential freight brokers, find out what technology they use to book loads and maintain operations.
4. Marketing and Branding with a Freight Broker Business
Brokerage firms often have established brands and marketing strategies. Agents can benefit from this brand recognition, making it easier to attract new clients and grow their businesses.
Again, the key is to find a well-established freight broker who has years of experience in the industry. When brokers can make a name for themselves, it’s a sign that they make the most of their marketing strategies.
5. Proactive Steps Against Double Brokering
It’s crucial that you protect your business from double brokering schemes, and the right freight broker service can make all the difference.
The best freight brokers take an active role in combating double brokering. Ideally, your broker will have invested in tools and technology to spot fraud and scams.
Making the Right Choice
trucks on a highway surrounded by mountains
As a freight agent, you can find plenty of benefits when working with a freight broker. That said, you don't want to choose just any freight broker. Not all brokerages are the same.
Your freight broker should have an excellent reputation in the industry, offer you plenty of support and resources, and provide thorough and prompt communication.
At Pearce Worldwide, for example, we want to make sure that each freight agent we work with feels heard.
We also actively combat double brokering schemes by investing in the right tools and providing training so our agents know how to spot the warning signs.
Our team would love to help you with resources and support. If you're ready to learn more about how we can help you with your freight agent business, get in touch with us today.
