What is Freight Brokering?
Increasing demands around the world for imports and exports and their fast delivery have kept the logistics industry steadily growing. Freight Brokers play a crucial role working as middlemen between shippers and carriers in ensuring cargos are transported securely to where they are required and on time. Equipped with the most current knowledge of freight carrier services, Freight Brokers will:
- expedite the sharing of information and documentation between customers and carriers
- pair customers with freight carriers
- provide customers with shipping quotes.
- book orders and line carriers up for loading
- communicate with dispatchers and drivers to track the status of cargos
- update customers on status of shipments and assist with any ad-hoc matters
- attract new customers and secure new accounts
While opportunities for growth in the traditional freight brokerage business are still optimistic, digital freight brokering looms over its head as a disruptive competitor. And the competition has been kicked up Amazon’s recent launch of its freight brokerage platform, which enables shippers to get instant quotes and match with a freight service. Therefore, many brokers are or will be expanding their business into digital space, taking advantage of technological advancement, which has the ability to reach more potential customers in a faster, more efficient manner. Traditional freight brokers that cannot keep up with this trend and the highly competitive market that it creates may find themselves losing profitability and market share steadily.