How Transportation Brokerage Contracts Can Help Your Company Budget


Getting your shipments where they need to be is the top priority for your business. Unfortunately, having a fleet of truckers on staff can be quite costly. You face the expenses of fleet maintenance, the overhead of the drivers on staff, and the payments for property to park the trucks when they are not on the road. When you consider all of those expenses, it is reasonable to try to find ways to save money. One way you may be able to do this is by contracting with a transportation brokerage company instead. Here are a few ways that a broker can save your company money.

Liability Protections

When you work with independent shippers, you may have some liability and insurance protections through the shipping company, but your company will still be held liable if something happens to your shipment en route because you made the direct choice to use that shipper. You can only do just so much vetting of each provider, so you put your company at greater risk.

Contracting your shipments through a transportation broker gives you greater protections. The broker will vet each shipping company they rely on, knowing exactly what the company's track record is. In addition, they will offer greater liability protections, and they will take more responsibility for your loads and anything that happens in transport.

Expert Load Analysis

Considering that transportation brokers are experts in the logistics of load evaluations, cost assessment, and planning, you can save a lot of time and money by working with a company like this for your shipping.

Your transportation broker can evaluate your delivery needs, the locations of each of your shipments, and the schedule on which everything needs to operate. Since they have a larger volume of truck drivers, they can more effectively distribute your shipments and reduce your logistical costs. Sometimes, they can even combine loads with those from other companies to help reduce your shipping expenses even further.

Mode Options

There are a variety of shipping modes, and each comes with its own costs. When you work with a transportation broker, you have access to each of these modes. A transportation broker can assess each of your delivery windows and recommend the proper mode to meet your delivery needs, but they can also provide you with other mode options that can save you money. For example, you may be able to combine shipments and use intermodal transportation to cut costs, or you may opt for less-than-truckload shipping to spread the costs out between multiple companies.

Working with a freight broker also provides you with easy access to air shipping, which is ideal in an emergency situation. And since it's a broker's shipping option, you can often negotiate a lower price because they ship in greater volume on their accounts.

Inbound Shipment Savings

You may think of your contract with a transportation broker as simply for your outbound shipments. The fact is, you can use your broker for your inbound shipments, too. When you're ordering supplies, you're at the mercy of the shipping providers that your supplier uses. However, you can negotiate a shipping agreement that relies on the use of your broker's services instead. This gives you greater control over your supplies and the costs of their shipments.

In fact, when your transportation broker is handling both your inbound and outbound shipments, you may even be able to negotiate volume discounts and other cost savings that will help you reduce your expenses and improve your company's bottom line.

These are some of the many reasons why you should think about working with a transportation broker to get your shipments where they need to be. If you're looking for logistic reliability and cost savings, contact a transportation broker near you today for more help.


7 January 2019

The Perfect Vehicle

Several months ago, my wonderful spouse decided we should sell one of our vehicles. At first I was worried about how we would both get around, but his main goal with this plan was to start utilizing more public transportation. Ultimately I agreed that this was a good plan, though I was still concerned with using public transit as I hadn't had many experiences with it in the past. This blog is all about the benefits and advantages of transportation besides your own personal vehicles. You actually might be surprised by how easy it is to use other transportation methods!