Tuesday, June 15, 2021
By:
Drew Jackson
It’s not uncommon for shippers to try to cut costs by skipping over freight brokers to work directly with carriers. On paper, this seems like a straightforward move. But in practice, shippers can end up losing both time and money without the help of a freight broker to guide them. This is especially true now, as complications from
the COVID-19 pandemic continue to rattle the logistics industry.In reality, shippers can gain more value by partnering with freight brokers. These benefits include greater cost efficiencies, a significant time savings and less hassle. Here are four misconceptions about working with freight brokers that we hear most often and why we believe shippers will get more from working with a broker.
Misconception #1: It’s Cheaper to Contract Directly with the Carrier.
Too often, shippers learn the hard way that the least expensive truck is not always a bargain. The time required to conduct due diligence, evaluate pricing, track loads, and invoice shipments can easily eclipse any cost savings. In addition, you need to be on top of any issues that arise, such as delayed pickups, late deliveries and ruined loads. In contrast, brokers have the experience and network to find the right truck for the best price, avoid needless add-ons like detention and layover, and manage any complications that come up before, during or after shipment.
Misconception #2: Asset-Based Companies Offer a Better Deal.
Large asset-based companies may offer a better deal only to turn around and contract out some or most of your load. This means your freight could end up being brokered anyway, but you will still be responsible for managing the logistics. With a freight broker, you will have a partner that takes care of the process for you. In many cases, freight brokers have access to technology that make it easier to find carriers and track shipments—tools that simply are not available to shippers.
Misconception #3: I Have Tighter Oversight of My Freight.
As noted above, large-capacity carriers will contract out extra loads when needed. So while you did your due diligence before selecting a carrier, your freight may end up with a truck that doesn’t fit your needs or your requirements. A freight broker will make sure your load is placed on the right truck at the best price. In addition, brokers have the resources at their fingertips to check safety records, insurance certification, incidents on record and other factors that are key to vetting carriers.
Misconception #4: It’s Easy to Secure a Truck.
It’s not rocket science to find a truck—in a normal year. But thanks to the COVID-19 pandemic, trucks and drivers are hard to find and capacity is expected to remain tight throughout 2021. Demand is up, and so are rates. Brokers make it their business to build a large pool of carriers that they know and trust. They can find trucks that shippers or larger fleets miss, often at a more favorable rate. In fact, Nationwide Logistics freight agents have access to more than 50,000 carriers that are vetted for safety and insurance on day one.
The Simple Truth: Nationwide Gets Your Freight Where It Needs to Be
At Nationwide, our focus is on making it easy to keep pace with an industry that’s in constant motion. To that end, we harness technology so that our team and our agents can work better and faster, but never at the expense of personal attention. We take time to build relationships that provide our agents and customers with a database of vetted, high-quality and reliable carriers. Our commitment to fast pay keeps our carriers—and their drivers—loyal. And our team of logistics experts provides 24/7/365 support to keep your business moving. In sum, our diverse capabilities enable you to focus on your operations and our agents to focus on you.
Visit us at https://nationwidelogistics.net to learn how we can support you at every turn.