The best freight brokers are highly skilled individuals who wear many hats. They are excellent negotiators, know the transportation industry backward and forward, and can solve any logistics crisis that comes their way—professionals who want to reach this level of expertise benefit from learning about common challenges on the job. Join us on a journey through five of the most common freight broker challenges and learn how to overcome each one.
1. Pricing
Freight brokers must have consistent and fair pricing, but sometimes, that’s easier said than done. If prices are too high, booking with shippers will be difficult. If prices are too low, getting carriers for the job and staying in the black will be impossible. Furthermore, pricing must always make sense according to the market and various factors unique to each load.
To overcome any pricing-related challenges, freight brokers must take a data-driven approach to pricing. Use advanced pricing technology that provides real-time market data so the pricing is not based on outdated information. With the most up-to-date pricing information, closing sales, protecting margins, and being fair to all parties involved is easier.
2. Building Carrier Relationships
A freight broker’s success and reputation hinge primarily on the quality and size of their carrier network. The more robust and extensive the carrier network, the more money the broker can make. If a freight broker struggles to build carrier relationships, business can stagnate. While it can be easy to use load boards and historical data to book shipments, it is crucial to put in the effort to make new relationships and keep existing ones strong. Load boards and historical data are excellent resources but do not necessarily translate to loyalty.
Regarding carrier relationships, it is crucial to leverage the available resources to make connections and work to develop and maintain strong working relationships. The best freight brokers continually work to build and sustain carrier connections throughout their carrier. The networking never stops. Ultimately, the hard work pays off because the carrier network influences pricing and helps the brokers provide the best quality service to their shipping customers.
3. No Guaranteed Capacity
Unless a freight broker is part of an asset-based logistics company, they do not have assets to move freight. Without their trucks or equipment, freight brokers have to rely entirely on the carriers in their network to move goods for shippers. These freight brokers do not have guaranteed capacity to offer to their shipping customers, which can be problematic when the demand is high.
Freight brokers have three options to overcome capacity limitations. 1) Work for an asset-based logistics company. 2) Cultivate existing carrier relationships and continue to make new connections. 3) Both A and B. The surest way to ensure capacity never stands in the way of business success is to take the path of option C. Work for a company that sets you up for success and continually enhance your network.
4. Navigating Technology
Paperwork and manual data entry are default business tools for some freight brokers, but they are not necessarily the best tools. While these old-school record-keeping methods can do the job, they do not give brokers a competitive edge.
To achieve business success, freight brokers must take advantage of new technologies that help them streamline operations, provide the best prices, and make the savviest business decisions. Proprietary transportation management software combined with 24/7 agent support can help cut down on paperwork, redundant processes, and potential errors.
5. Managing Communication
Communication is one of the most critical responsibilities of a freight broker; however, mastering communication can be a challenge. Some freight brokers struggle to be proactive and thorough, and their relationships with carriers and shippers suffer. It’s crucial to keep all parties involved up to date with timelines, statuses, and critical details.
In addition to practicing the art of communication and improving the finer points over time, freight brokers can use tools to help. To streamline simple updates, freight brokers can offer shipment tracking so that customers can always know where their freight is located.
Become a Freight Broker at First Star Logistics!
Are you looking for a supportive working environment where you have everything you need to navigate challenges that arise on the job? Look no further than First Star Logistics.
First Star Logistics is a unique asset-based global brokerage company with over 60 years of experience. We are looking to expand our brokerage department by hiring enthusiastic individuals wanting a fast-paced career in the logistics industry. We empower you to succeed by allowing you to create your goals and networks and make your own money. Our freight broker training program will enable you to start as a trainee or an experienced broker. Our talented freight brokers enjoy the highest commissions in the industry, weekly pay, proprietary software, a potential sign-on bonus with book of business, 24/7 agent support so you can be as productive as possible, and more customer saturation.
To join the First Star Logistics team, apply today.