Categories
Uncategorized

Why Trucking Companies Want To Work With Freight Brokers

In the last 10 years trucking company owner operators have found themselves in a technological jump where all of us are trying to learn, understand, and in most of our cases install ELD technology into our trucks. Technology has slowed our delivery time down with ELD and HOS hours Of Service Mandate to the point that its effecting the bottom lines on every small trucking company and freight brokerage in America.

These reasons are the final decision for most of us this year to force us to start focusing on better paying lanes and less dead head. The fuel prices for national average of diesel continue to rise and Trucking Company Owners are faced with strategic planning. Another major hit the small trucking company owners today in America is driver shortage. It is becoming increasingly more difficult to find drivers who just don’t quit or over damage your equipment. For these important issues today facing us, we must be prepared to find alternative measures to place into our business structure to secure more consistent freight and gain higher exposure to more shippers.This is the job of a true freight broker who is managing freight lanes for your trucking company. It’s imperative today that we learn how important a trued freight broker is today for small trucking company owners to build relationships with.

Over the last decade truck companies have been confronted by many new freight broker agents not delivering on their promises and exiting usually with a one load quick freight load for a $ buck. The influx in freight agents literally sent a trickle affect to the point that shippers and carriers are having hard times on freight rates for the inconsistency floating around within logistics caused by nonprofessional freight broker agents since late 2008 until now.

For these reasons carriers find themselves today dealing with trust issues and overall business ethics that freight broker agents have represented. These types of assumptions are valid because all of us who own trucks have dealt with shady freight brokers. In today’s world of logistics, trucking company owners today can still find many great professional Logistical Service Providers who are skilled and able to build freight lanes.

Overcoming the stigma and trying to understand how the relationship between freight brokers and carriers will never go away, its time more owner operators where open to the idea of truly working with a logistics broker who can understand their truck company and help develop freight lanes on behalf of their truck company’s benefit.

Trucking company owners need to realize that the national average of freight moved in the back of trucks today in America is 70%. This means that a lot of freight cannot be had by going direct with the shipper. The shippers of America today are connecting to EDI Systems (Electronic Distribution Interchange Technology allows shippers to connect their supply demands to an online network of logistics options within one main system). Within logistics we geeks call this fun and exciting as it allows us to better manage freight lanes and see future forecast within lane prices.

Leave a Reply

Your email address will not be published. Required fields are marked *