Should I use a freight broker? 

24th July 2019

Posted on Categories Ask the Expert, BusinessTags , , ,

If you’re trading internationally, you’ve likely heard of freight forwarders before. They help importers and exports navigate the complexities of moving their goods around the world. 

Freight forwarding companies exist in numerous different shapes and sizes, from one man bands, right up to global giants like DHL & Kuehne & Nagel. Each with their own pros, cons strengths and weaknesses. 

However there are other options to manage your freight shipments rather than freight forwarders. 

What is a freight broker? 

Whilst common place in the USA, freight brokerage is a relatively unused term in the UK. A freight broker is very much like any other type of broker, an intermediary who’s main role is to bring together a buyer and seller. In this case a shipper and a transport provider. 

A freight broker provides a similar service to freight forwarders, but with some key differences. 

Freight brokers: 

  • do not take physical possession of the goods 
  • help identify the best transport company for your needs 
  • should be neutral and independent  
  • work for you to cut costs 

In principal a freight forwarder can and do offer the services of a broker, but the reality is very different as it’s not a cores skill set and many forwarders are required to utilise their own vehicles and services, even when there could be better options for the client. 

Why use a freight broker? 

In one word efficiency. 

By using a freight broker you have the benefit of your own dedicated shipping resource without any of the cost. In reality it’s only some of the largest companies who have the luxury of a true logistics or shipping department. The reality is that the responsibility for organising freight quotes and shipments, usually falls somewhere between, sales, accounts, warehouse or more often than not on the boss’s desk. 

A broker adds flexibility and value to your supply chain, and by focusing on your core skill set, you can do what you do best and leave the shipping & logistics to what brokers do best. 

Rates change daily, and knowing which providers to even approach about your shipments is not always clear, a freight broker is dealing with these challenges daily and can utilise their network and leverage buying power to provide discounted pricing you would not otherwise have access to. 

Logistically offers a freight brokerage service tailor made for SME’s. Free review of your current freight requirements and no obligation registration for our brokerage service. Visit www.logistically.co.uk or email info@logistically.co.uk to find out more. 

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