What is Freight Brokerage

By TLI

Category: Logistics

Topic: Freight

Freight brokerage is an important element in the logistics industry. A freight broker works as the intermediary between shippers (those who have shipments) and carriers (those who transport shipments). The role of freight brokerage can go beyond just negotiating rates for the shipper. This resource will guide you through the role of a freight broker, a Third-Party Logistics Provider and how freight brokerage benefits supply chains.

The Standard Freight Broker

While there is some scrutiny in the industry on the concept of freight brokerage, the best freight brokerages are more than a middle man. The biggest culprits are bad players who utilize expired or false MC Numbers along with double-brokering. These players typically look at shipments on a transactional basis and do not care for relationship building. Burning bridges are quite common when things go bad, leaving shippers stranded in time of need.

Top freight brokerages offer valuable services to their shippers and carrier partners. These services help provide efficiencies to organization’s operations by having experts handle the small nuisances involved in shipping.

The Third-Party Logistics Broker

A Third-Party Logistics (3PL) company and a freight broker are not exactly the same thing, but they can provide similar services. While both perform freight brokerage, a 3PL offers a wider range of logistics services and are not transactional based. 3PL Freight brokers can provide shippers with:

Industry-Leading Technology

While larger shippers may have the benefit of industry-leading technology, freight brokerages are able to offer bundled versions of industry-leading technology. For example, TLI offers a comprehensive Transportation Management System that runs with industry-leading technology. Shippers enjoy the benefit of an easy-to-use system while having access to leading freight technology at no additional cost.

Industry Expertise

Freight brokerages offer industry experts to help coordinate shipments the best way possible. The top 3PL broker will understand what equipment is best for a shipment or if less-than-truckload carrier is a better option. Access to experts who deal with different kinds of freight every day helps with unfamiliar shipments.

Carrier Resources

Whether you are shipping with less-than-truckload or truckload carriers, a freight brokerage will have many resources for you. The top freight brokers will have relationships with great carriers to help ensure your freight is in good hands. A freight brokerage should also have tools and policies in place to ensure new carriers are vetted properly before handling any of your shipments.

Freight Brokerage: Done Differently

TLI is a full-service, Omni-Modal freight broker. Our service looks to provide shippers with a partnership routing all modes of transportation to deliver a powerful relationship. Services that we provide to shippers include: freight brokerage, mode optimization, freight invoice auditing, claim services, and technology services.

For over thirty years, TLI has provided shippers with the resources needed to efficiently route freight. While also keeping to our promise during bad experiences. TLI is your reliable 3PL Freight Brokerage. Learn how to get started with TLI or find more on TLI’s freight services here.