Human relationships are crucial to success in many industries and areas of life, freight logistics included. The core foundation of freight brokerage is strong relationships with carriers and shippers. These connections allow freight brokers to make money and do business. This guide explains why freight brokers need strong carrier relationships and provides tips for building these connections.
Why is it important to make a good connection with a carrier?
All freight brokers rely upon good connections with carriers, but these relationships are significant for non-asset brokerages without a fleet. Non-asset brokers rely most heavily upon carriers to transport products and meet shippers’ expectations. Here are three reasons why brokers need good connections with carriers:
Create a Network
While the market certainly ebbs and flows, carriers have plenty of options for brokers to work with and will likely only work with those they know and trust, even if they get a better rate elsewhere. To this point, the only way to have carriers to work with at all is to form good connections.
Withstand Supply Chain Fluctuations
Carrier relationships are also critical for riding the waves of the supply chain. Brokers must take care of carriers when the market tips in their favor, so carriers will do the same when the market shifts to their advantage. In many ways, the relationship between carriers and brokers is symbiotic.
Satisfy Shippers
Carrier relationships impact shippers. When the carrier conducts the same route regularly and reliably, business is smooth, and everyone is happy. Additionally, carriers may be more proactive and communicative with shippers they know well, and there tend to be fewer issues.
10 Freight Broker Tips for Building Strong Carrier Relationships
- Show Respect – In working with carriers, a good deal of respect goes a long way. To show respect, regard carriers as experts in their line of work, communicate professionally, and be competent and thorough in your own business activities.
- Minimize Detention Times – Lengthy and frequent detention times are terrible for carriers. They cause carriers to lose out on money, waste time, and lose other loads. The shipper primarily controls detention times. However, as a freight broker, you do have the power to select shippers who do not require carriers to suffer unreasonable wait times for unloading and loading.
- Communicate – Carriers appreciate thorough and timely communication. Open and transparent communication channels will benefit both parties, enhance the relationship, and add value to the business activities.
- Provide Fair and Competitive Rates – Carriers deserve to be compensated fairly for their work and expertise. As a freight broker, you are responsible for staying informed about pricing trends and keeping your rates up to date.
- Issue Payments Promptly – Delayed payments are excellent ways to degrade reputations and relationships. To build and maintain strong carrier relationships, brokers must streamline invoicing and issue payments promptly.
- Provide Consistent and Reliable Loads – Strong carrier relationships involve providing carriers with consistent and reliable business that aligns with the carriers’ expertise and preferences.
- Exchange Feedback – Open and honest feedback can benefit both brokers and carriers. Acknowledge and express appreciation for carriers’ strengths and offer suggestions for areas of improvement. In exchange, be receptive to positive and constructive feedback from carriers.
- Provide Support – Many brokers offer carriers value-added services and resources like exclusive load boards, technology, and administrative support. To ensure you have the best possible carrier relationships, stay ahead of the competition with your offerings.
- Effectively Address and Resolve Issues – Inevitably, issues will arise, whether from supply chain disruptions, issues with shippers, or something else entirely. What matters most is how the problems are addressed and resolved. To maintain strong carrier relationships, brokers must take prompt action, mediate as necessary, and find mutually beneficial solutions.
- Make Continual Improvements – There is always room for improvement in carrier relationship strategies. Freight brokers can benefit from staying up to date with industry trends, welcoming and applying feedback, and learning from others in the field.
Join the Freight Brokerage Industry with First Star Logistics
If you want to use your interpersonal skills to build strong carrier relationships in a successful and supportive work environment, consider becoming a freight broker with 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.
