Freight Broker vs. Load Boards: Navigating Freight Logistics

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When it comes to our economy, few things are more important than the movement of goods. For shippers, this means that it’s crucial to find the best available trucks for their freight. For carriers, this means finding the best ways to connect to available loads.

The ideal method should be efficient and cost-effective. While you have a lot of choices in this area, they all essentially boil down to two options: using a load board or using a freight broker.

Both methods serve a purpose, but the advantages of freight brokers can't be overstated.

Understanding the Basics

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Before you choose your primary way to find freight or find a carrier, it's important to know the basics of each approach.

Already know the basics? No problem. You'll find more information on the difference between freight brokers and load boards below, or you can check out what to look for in a freight broker instead.

Freight Brokers

What do freight brokers do? They manage communication between shippers and carriers. Freight brokers connect shippers and their freight with carriers who are looking to find loads.

They also handle different parts of the shipping process such as rate negotiation, paperwork management, shipment tracking, and making sure that both parties stay updated throughout the entire process.

Load Boards

Load boards also provide a connection between shippers and carriers. Shippers can post loads to a board, provide load details, and find carriers who can make it to the pick up and drop off location.

It’s important to note that you will not lose the benefits of a load board if you choose to work with a freight broker. Freight brokers themselves use load boards in addition to maintaining a large network of shippers and carriers. In other words, when you choose a freight broker, you get the best of both choices.

The Difference Between Freight Brokers and Load Boards

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Both freight brokers and load boards have their merits. That said, many carriers and shippers find that working with a freight broker is a better way to meet their business needs.

Below are just a few of the reasons why.

Better Load Availability

For carriers, brokers often provide more load availability than load boards do.

Many shippers avoid load boards altogether. When using load boards without the help of a broker, shippers have to vet carriers themselves, which is risky and time-consuming. A lot of shippers would rather spend their time on other aspects of their business, so they save time and risk by working with brokers instead.

Carriers who work with brokers can access loads from shippers who don’t use load boards, finding possibilities they would have otherwise missed.

Networking and Trucking Industry Expertise

With freight brokers, you get the benefit of expertise and networking. This is important for any carrier who wants access to more loads, especially owner operators, people who are new to the industry, companies that have recently moved, and people who operate a small business.

Freight brokers often work with a large network of shippers and carriers, so clients can gain access to new loads — and the right loads — more easily than they would by using a load board alone.

Freight brokers also understand the ins and outs of the logistics industry, which means that customers get much more than knowledge of available loads. They also get someone on their team who knows how to spot market trends and other important information.

Of course, all of these benefits depend on finding the right freight broker. Look for a freight broker who has years of experience in the industry and a solid reputation among customers. The more experience they have, the bigger their network and knowledge will be.

Some freight brokers can even take it a step further. At Pearce Worldwide, for example, we've been involved in the trucking industry for generations. Members of our family have been in almost every part of the industry as carriers, brokers, and truck drivers.

Customized Solutions for Shippers and Carriers

Shippers often have unique needs, such as heavy haul shipping or other special considerations. Carriers also have specific needs, like finding available shipments for reefer trucks.

Thanks to their networks and expertise, freight brokers can match loads under a broad range of circumstances. Whether that means finding power-only trucks, trucks with specialized technology, or any number of things, freight brokers have what they need to help customers adapt to unique situations.

In the trucking business, one-size-fits-all solutions don't often provide what the client needs most. Freight brokers can tailor solutions.

Risk Mitigation Strategies

Though the trucking industry has its risks, there are steps you can take to mitigate them as much as possible. One way is to work with a freight broker.

Freight brokers offer a level of risk mitigation that load boards alone can't offer.

For example, they vet carriers and shippers before connecting them to one another, which ensures that both parties can enter the agreement with some level of trust. When using a load board, on the other hand, all parties have to do much of their own research.

Technology and Tracking

Many brokers use advanced tracking technology for shipment visibility. Load tracking is essential, especially when disasters, such as hurricanes, for example, keep truckers and their trucks from reaching their destination as expected. Tracking can help the carrier know if their drivers are safe, and it can help the shipper know where their shipments are and how they can adjust based on the circumstances.

Load tracking also provides transportation transparency, which boosts communication. Even in non-emergency situations, better communication means a better experience from pick up to drop off.

Problem Solving

Freight brokers are problem solvers, and the best ones are great at thinking on their feet. Every shipper and carrier should have this kind of thinker on their side. The logistics industry is full of twists and turns. Everything from unexpected traffic to a surplus of products can impact when and how freight gets to its destination. Truck brokers help their clients find quick and effective solutions.

Time and Efficiency

Load boards can help you save some time upfront, since you can access them quickly. In the long term, though, freight brokers will save you more time overall than load boards will. Once clients partner with a solid broker, they can save time on things like paperwork, negotiations, and load matching.

Long-Term Cost Savings

Some people assume that load boards provide the most low-cost solution for matching loads, but this is another case of upfront costs vs. long-term costs.

Overall, many businesses save money by working with a good freight broker. For example, they may use all of the time that they saved to grow their business, or they may discover cost-effective solutions thanks to insights from their broker. The reduced risk of disruption, thanks to load tracking and problem solving, also saves money.

Stay Connected

We've covered just a few of the benefits of working with a freight broker, but you may still have questions about how a freight broker can help you. If so, we'd love to hear from you. Get in touch with us at Pearce Worldwide to learn more.