The Broker Shipper Agreement: What You Need to Know About Brokers and Shippers Before Signing a Contract

Keeping up with the speed of business today means finding partners you can trust. For example, for any company that transports goods, none is more important than shipping. And did you know that trucking accounts for 71% of all shipping in America?

So to keep your freight moving, you need a broker shipper agreement that works for your needs. When businesses grow, they rely on a freight broker to find the best carriers for transport.

But, before you sign a broker shipper packet, you should know some facts. So if you want to learn more about the shipper broker relationship, keep reading. Here’s a brief guide to the role of a freight broker in your business.

The Freight Broker Role

Getting your freight moving with a suitable carrier can be a challenging task. So, the freight broker exists to take the worry away from the freight shipper. A licensed freight broker has developed relationships with various forms of transportation.

With a network of carriers at their disposal, the broker not only moves freight at the best cost to the shipper. They take charge of all aspects of shipping on the customer’s behalf. There are three distinct ways the shipper broker partnership can be beneficial.

Cost Savings

For every shipper, an experienced broker matches freight with appropriate carriers. For example, they can fit smaller loads with trucks that are moving without full loads. With access to load boards, brokers negotiate prices with carriers for the best rate.

The broker also has lists of pricing for trucking companies they use to choose. Carriers and brokers work together to maximize loads for their vehicles. So the savings get passed to the shipper.

Faster Freight

The developed network of a broker allows them the agility to make timelines work better. Scheduling loads and even customs clearance are all part of the broker’s function.

Third-Party Logistics

Shippers don’t always have time to learn the nuances of moving freight. As part of the 3PL service, the broker arranges every stage of a shipment. They will direct movement from docks to drayage facilities and then to destinations.

After you book your load with a broker, they go to work, making each step of the journey fit and move faster. The shipper contract puts the tracking of your freight in capable hands. In addition, the broker ensures safe and secure transport with trusted associated carriers.

So when time is a critical factor in moving your goods, the broker has better sources available. Then, once your freight is on the route, the broker is there to keep everything moving forward.

The Broker Shipper Agreement

There is a lot of industry knowledge that goes into shipping freight. Shippers who work with a trusted freight broker know they have an important ally.

Some shipments are more challenging to move as well. For example, shipping hazardous material requires the expertise of industry professionals. Yet, a broker shipper agreement can achieve its goal when there is a clear understanding of roles.

So before shipping freight, read your broker shipper packet with care. Then, when you entrust your cargo to experience, you can relax. And if you found this article moving, stop by for more insights.

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