If you have product that requires shipping from one destination to another, chances are you need a freight broker (also known as a cargo broker). There are several steps involved in transporting cargo, and without the expertise of a broker it’s easy for important details to go unattended. Here are four ways a freight broker helps your business.

Insurance Provider

Freight brokers play a vital role in cargo movement, acting as the middle man between the shipper and carrier, negotiating acceptable rates. A business or individual can operate as a broker with mandatory licensing from the Federal Motor Carrier Safety Administration (FMCSA). In addition to acting as liaison, freight brokers can assure owners of cargo that coverage is in place with a Motor Carrier. Or, they can offer options for cargo insurance coverage.

Understands the needs of all parties involved

The freight broker collects information from the shippers and carriers, then records the load activity and lanes of their clients. Attentive brokers network with the carriers focusing on lane preference and truck quantity to meet load demand. Data analysis enables the freight broker to formulate various strategies that attract and retain customers for the carriers and shippers.

Cash flow management

Whether you’re a shipper or carrier, all aspects of “cost” are of foremost concern. Elevating fuel costs and high operating expenses have left a negative impact on truck availability; leaving both sides to face rising expenses, while generating a worthwhile profit. Availability (also referred to as “capacity”) has dwindled over the years, resulting in the pace of shipper rates and trucking costs being out of sync.

Company growth requires consistent monitoring in order to meet customer demand. Many freight brokers are detail-oriented with the ability to carry out various responsibilities such as cash flow management, invoice creation, and making timely payments.

Prepares for the unexpected

Unexpected problems happen regardless of how concrete the plan of action is for a transportation broker. An experienced freight broker thinks ahead to address future challenges that can affect cash flow and client demand, while tending to current concerns.

If you are a shipper or have cargo that requires transportation from destination A to B, you need a freight broker. By using their knowledge of the industry and technological resources, a freight broker provides you the motor and shipping coverage you need to run your business successfully.

To find out more information about the various topics concerning the freight brokers contact us today. If you are a freight broker in need of coverage, LOGISTIQ is here to help. Our Broker Shield Insurance program encompasses all lines of coverage that a freight broker needs.