Freight Broker Software Blog

Why should a shipper choose to use your brokerage company to move their freight, rather than dealing directly with carriers? Unless you add something of value to the transaction, they will not choose you. Let’s look at some of these value added services and how you can improve your customer satisfaction rating.

One reason a shipper will choose to use a broker is to avoid adding additional manpower costs to his payroll. As long as the services you are providing are less expensive than additional employees, shippers will continue to use brokers. These services include carrier certification, driver communications, handling claims, and carrier payables. If these are handled well, you will have a satisfied customer that will continue to value your partnership. There may be other services that are unique to your market niche. Be aware of the services that you are expected to provide and do them well.

A second reason to use brokers is to provide a more stable rate structure. For example, if a company uses a broker for a specific lane, his rate will remain fairly constant for that lane. But if he is using many different carriers, the rate will fluctuate drastically. When shippers are planning the cost of moving freight, this ‘rate stability’ is important to them when determining the cost of the product they are shipping. Forward forecasting relies heavily on rate stability.

A final reason that some shippers use brokers is to insulate themselves from lawsuits. If the shipper deals directly with the carriers, he is responsible for insuring all his carriers and their drivers are safe and all the carriers all have cargo and liability insurance. If he uses a broker, however, he has an insulating layer between himself and the carrier. But that means that you can also be involved in possible lawsuits. I cannot emphasize enough the importance of brokers establishing and following proper carrier certification and having cargo and liability insurance. Shippers also need to know your certification policies and insurance information.

Add value for your customers and you will be partners indefinitely. However if you just coast along and do not add much value, soon you will be without customers. If you are too busy to handle the small issues that pop up, soon you will have plenty of time.

Using TruckMaster’s Freight Brokerage Software will help you manage your business and keep track of the small things that make a world of difference to your business. Contact us today for a free demo.

Craig Sorensen
TruckMaster Solution Provider
TruckMaster Your Freight Brokerage™