What Are Freight Brokers?

Written by Business magazine. Posted in Freight visibility platform, Ltl shipment, Transport management solution

Types of load boards

What Are Freight Brokers?

Freight brokers act as a third party between the shipper and the trucking company. Some freight brokers use transportation broker software to improve their productivity in order to perform their jobs more efficiently. As the liaison between the two aspects of shipping and receiving merchandise, freight brokers play an incredibly important role in getting a product to its destination quickly and efficiently. Without them, errors are more likely to occur.

How Can Freight Brokerage Software Improve Efficiency?

There are many ways that transportation broker software improves efficiency for freight management. It has the ability to keep track of product and shipments for the brokers, in order to prevent loss and mismanagement. This transportation management software provides solutions for freight brokers, who work with both shippers and trucking companies. With the freight visibility platform, the transportation broker software tracks the type of load boards and works for all types of transportation broker. This is all pertinent in the transportation industry because the LTL market is estimated at approximately $35 billion. According to Satish Jindel, president of SJ Consulting Group, 23% of all for-hire freight tonnage can be attributed to retail. The increase in retail and e-commerce brings up the demand for increased fleets on the road. This, in turn, increases the need for efficiency and reliability among freight brokers.

Is Transportation Broker Software Worth The Investment?

Brokerware provides transport management solutions to freight brokers. When debating whether or not the broker software is worth the financial investment, it is important to review transportation statistics. According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States. According to the U.S. Department of Transportation, the value of freight moved is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040. Without integrated transportation broker software, these millions of dollars are in jeopardy. With it, there is a sense of relief knowing you have a better way of shipment tracking. U.S. e-commerce revenue is about $423.3 billion and is steadily climbing. Whether it’s full truckload, less-than-truckload (LTL), or parcel, carriers are being forced to adjust to changes in the retail industry.

Leave a comment

You must be logged in to post a comment.