What Does A Freight Broker Do?
If you run a business that ships products, one of the first questions you must resolve is how to arrange transport. In today’s economy, shipping goods is an essential part of many businesses. This trend has only increased as COVID-19 lockdowns and regulations prevented people from shopping in person. One of the most helpful ways to find truck drivers for your business is with freight companies. In particular, digital freight brokers help companies in unrivaled ways. Digital freight brokers serve as online “matchmakers” that pair shipping companies with truck drivers. Usually, they utilize mobile or online applications whose algorithms help match companies and truckers in efficient ways. If you think you may benefit from a digital freight brokerage, you’re in luck! In this guide, we’ll explore what services these companies provide. Let’s get started!
What Is Digital Freight Brokerage?
Freight brokerage companies are like the GrubHub of the trucking world. By using a freight brokerage app your business can connect directly with truck drivers And if you’re a truck driver you can use the app to connect directly with small businesses looking for efficient shipping at a low cost. It’s a win-win for all parties involved. The system works just the way it does when you order your lunch from a delivery service such as Door Dash. You enter the size freight you need to be moved, along with the locations of pickup and delivery. The automated digital shipper system then locates a driver available for the delivery and connects you with them. You then agree to the amount paid and they show up to pick up your delivery. This system speeds up logistics exponentially. Trucking companies and logistics managers alike are turning to digital freight apps to speed up the communication between their drivers and their warehouses. The process can work with entire truckloads, along with single or smaller loads, that need to go out for delivery. So whether you have a few packages that need to go out for delivery or an entire truck’s worth, you can find a delivery driver ready and able to get your package where it needs to go.
The Two Functions of Digital Freight Brokers
Digital freight brokers usually market themselves through two features. First, they assist smaller companies who need flexible and efficient shipping to compete in large markets. Second, they allow more flexibility for truckers; we’ll discuss these features in the sections below.
Digital Freight Brokers Help Companies with Fewer Shipping Needs
Several companies lack long-term contracts with shipping companies. The reason for this is often because the agreement would require more money than the business could afford. Another factor in this is a shortage of truck drivers across the US. Due to the shortage, many trucking companies became much more expensive to hire long-term. Companies with fewer shipping needs often lack the budget necessary to enter lengthy contracts with truckers. Instead, they can turn to digital freight brokers. These brokers help small to mid-range shippers find more affordable shipping for their needs. They don’t enter a contract for this service. Instead, they enter information, and truckers will come to pick up the shipping goods.
Giving Flexibility to Truck Drivers
Truck drivers face issues that few people know. For example, independent truck drivers often struggle to carry return loads. They may drive across the country with a full cargo of shipped goods but have no return load. Because of this, they have to find places to pick up return loads to remain profitable. This process can waste several resources, thereby reducing a trucker’s potential income. A digital freight brokerage can help truckers resolve this issue. If a trucker arrives in Boston, he may match with cargo going to Albany. From Albany, he may pair with loads going to Memphis. Through these processes, the trucker can avoid the risk of empty miles as they make the journey back home. Many truck drivers love this flexibility. It enables them to choose the routes they want and receive payment quickly.
5 Advantages of Choosing Digital Freight Brokers
As you can see, digital freight brokers utilize high-tech solutions to help both small businesses and truck drivers. However, these services provide several other benefits that we have yet to explore. In this section, we’ll examine some of those additional advantages.
1. Save Time
In the past, human freight brokerages often did this same type of work. However, unlike their digital counterparts, they navigated these processes by a phone or fax machine. It could take these brokers several hours, possibly days, to match a driver and a shipment. Digital brokers provide a much faster solution. They help match truck drivers to a freight company’s shipment in a few minutes. As a driver, these services offer a minimal risk of missing out on convenient loads.
2. Decreased Levels of Paperwork
Another benefit of digital freight brokers beloved by all is the lack of paperwork. Most digital freight apps handle all paperwork through the app’s system. This paperwork includes photos for proof of delivery. It also includes any bills of lading that require a signature. Because of this efficiency, you’ll never need a fax machine for the job. You can also avoid allowing a pile of papers to build on your desk.
3. Get More Affordable Prices
Everybody loves an affordable rate, and these digital services manage to deliver. Several digital freight brokers have lowered their prices and rates to make themselves more competitive than more traditional services. As a result, in the short term, you can rely on a reduction in costs. This reduction has helped many smaller companies who wouldn’t be able to afford standard market prices. Another feature of these apps is the reduced cost of labor. Unlike other shipping companies, digital freight brokers perform their work digitally. This digitization means there’s less work for humans to do. Because there’s less human labor for these services, they can keep their costs low. The majority of their funds move directly from the shipping company to the trucker.
4. All-Day Access
A non-digital brokerage likely closes at some point in the day. However, digital brokerages have the freedom to run 24/7. This freedom allows both businesses and truck drivers to post or pick up jobs at their leisure.
5. Optimized Driving Routes
Another advantage of freight brokers is how they optimize routes. Most digital freight brokerages utilize artificial intelligence to use the best possible paths for their cargo shipping. Their methods also help predict the supply and demand for shipping loads. This asset helps shipping companies keep their costs low. It also helps bolster the need for truck drivers, giving them more work and higher incentives. Because of this, they get to capitalize on the work a regular dispatcher may receive. However, they receive this work and greater flexibility by using the digital freight brokerage’s app.
How to Find the Best Freight Brokerage Company
So now you know what a digital freight brokerage company does, and you’re sold on why you need it to increase efficiency and cut costs. But how do you go about finding the best company to work with? Aside from cold-calling, you can also tap into your existing network. Who do you already work with? Who is your competition working with? Ask for referrals, build relationships, and you’ll have full load boards in no time. Check your local area and find the best digital freight company to work with. With the advantage of big data and AI technology, freight brokerage companies can be very transparent with the shipping times, costs, and efficiency. Don’t let your package get stuck at a dock waiting for a truck driver. If you don’t want to be stuck in the middle, then cut out the middle man by downloading a digital freight app and working directly between driver and shipper. From Amazon Prime to Walmart, companies are ramping up their delivery services to keep up with the demand and churn of drivers.
Find a Digital Freight Broker Today
As you can see, these freight companies provide several benefits to their users. They help truckers gain more flexibility and convenience in their runs. Likewise, they help small businesses to compete in large markets. We strive to offer these benefits to our carriers and shippers alike. If you need a reliable digital freight broker you can trust, contact us today!