Freight Brokerage 101

  
Freight brokerage plays a big player in today's logistics. A freight broker is an individual or company which brings together a shipper who needs to transport goods with a duly authorized motor carrier such as truck or trailer that wants to provide such service.

A freight broker is under the category of transportation intermediary which is a company that is neither a shipper nor a carrier but one who plays an important role in the cargo movement. These transportation intermediaries invest in technology, leverage their skills and knowledge as well as manpower resources to help both the shipper and carrier to succeed.

These brokers play a valuable and important service to both shippers and motor carriers, and they help these carriers fill trucks and earn commissions for their outstanding efforts. They help find reliable motor carriers for these shippers and some companies use brokers as traffic department to allow the brokerage company to coordinate all their shipping needs.

Brokers are not new in the trucking industry, and in fact they've been existing since the industry itself began in the early part of the twentieth century. Governing broker regulations started prior to 1970's that create new entrepreneurial opportunities among the arena third-party logistics. Here are the key players in the industry and these are the things they do.   

First is the freight broker who is regarded as a middleman who connects carriers and shippers. Second is the shipper who is a business or an individual that possess or has the goods or products to transport. A motor carrier, which is a company that provides truck or trailer transportation, and there are two types of which that include a private carrier with its own cargo and the one for hire that is paid to provide cargo transportation that is belong to others. Know more about the fast website builder.

On the other hand, a freight forwarder typically take possession of the goods, handles consolidation of numerous smaller shipments into a large shipment and arrangement for transport of that larger shipment utilizing various shipping methods that include land, water and air carriers. Import-export brokers are facilitator for both importers and exporters which interface with the United States customs and other government agencies, international carriers and other organizations or companies involved in international freight transportation. You can also learn more about website building by checking out the post at http://www.huffingtonpost.com/tag/web-design.

Whereas, agricultural truck brokers arrange motor carrier services for agricultural products and usually they are generally small operations in one area of the country and often unregulated. Lastly, shipper's associations are non-profit, exempt and cooperative organizations formed by shippers to reduce costs of transportation by creating pools of shipments and by operating in a manner similar to freight-forwarders but is limited to their members and is not readily available to the general public. Be the owner operator websites.