A Freight Broker is a logistics specialist that serves as a liaison between a manufacturer that needs shipping services and an authorized motor carrier.  Logistics is the science of optimizing the distribution of freight and freight-flow from manufacturer to consumer to reduce inventories, cut transportation costs, speed delivery, and improves customer service.  It is the process of planning, implementing, and controlling the efficient flow of goods. 

Freight brokers play an important role in the movement of cargo; the broker doesn’t function as a manufacturer, buyer, seller, or a carrier.  Instead, a freight broker works to determine the needs of a manufacturer (or shipper) and connects that manufacturer (or shipper) with a carrier willing to transport the items at an acceptable price.  Freight broker services are valuable to both manufacturers (or shippers) and motor carriers. 

Freight brokers help shippers find and book reliable carriers that might otherwise be difficult to locate and dispatch.  They assist motor carriers in filling their trucks and earning money for transporting a wide variety of items.  Freight brokers use their knowledge of the shipping industry and technological resources to help shippers and carriers accomplish their goals.  Many companies find the services provided by freight brokers to be indispensable.  In fact, some companies hire brokers to coordinate all of their shipping needs. 

During the middle and later 1990s, private companies discovered the benefits of hiring or outsourcing outside logistics experts (freight brokers) to manage the total flow of products from raw materials to finished goods.  Recognizing the value of the freight broker’s strategic business counsel, companies utilizing third-party logistics providers (freight brokers) have become more efficient, competitive and focused on their core competencies.  It is like having a full or part time virtual assistant traffic manager.

Often, freight brokers are confused with freight forwarders.  Though a freight forwarder performs some of the same tasks as a freight broker, the two are not the same.  A forwarder takes possession of the items being shipped, consolidates smaller shipments, and arranges for the transportation of the consolidated shipments.  By contrast, a freight broker never takes possession of items being shipped.

Some freight brokers are “alter egos” or sub-divisions, of either a shipper or a carrier, bringing their particular bias into its operating philosophy and rate setting (pricing). 

Other freight brokers are stand alone businesses known as “pure” freight brokers.   

Duregger Logistics is a completely independent “pure” cost plus freight brokerage which moves freight efficiently, at or below, the current, lane specific, average market rates.

Or – “Two ways to stop losing money on transportation which you do or can control”.

Someone who controls the freight in any buy/sell transaction can benefit two ways by either earning money or saving money on the selecting of and payment for the transportation.

By engaging the services of the right kind of Licensed Property Broker of Transportation a purchaser of transportation (Shipper) is outsourcing essential transportation management services: carrier selection, price negotiation, contract writing (by the load), and contract enforcement over the carrier for transportation management fees which are contained in the freight cost per shipment at or below the actual Average Market Rates.

1) A SELLER can EARN MONEY on transportation by selecting and paying the transportation provider (Broker or carrier) himself and invoicing his customer for the freight by the “prepay and add” method. That is, to sell his wares with a delivery price as a line item in the sales contract labeled “Ship Best Way……..$Amount”.

Some sellers do this cost effectively for their customers (preferred) and many do not. It is perfectly legal and ethical to modestly mark up the transportation cost to arrive at your invoicing figure. Your earned Mark Up is for providing a legitimate service to your client by hiring a transportation provider to his benefit (he simply orders your product and waits for its arrival, (Prepaid-Ship Best Way, F.O.B Destination).

It is essential that an accurate Bill Of Lading (BOL) be supplied to the consignor’s shipment loading location (Origin). We are able to draft a proper Bill of Lading for you for each shipment and fax or email it to the point of origin for use by your consignor.

The Bill of Lading is a very important document which spells out legal obligations to the carrier, and all parties concerned, what is being transferred (Description), who the property is being transferred between (the Consignor and the Consignee), who is paying the freight charges to the carrier (“prepaid”, “collect”, or “third party” (We are the “third party” for all carriers supplied by us)), into whose legal responsible custody the shipment is being temporarily placed while in transit (Carrier), and at what point responsibility for freight damage claims against the carrier, if any, transfer from the consignor to the consignee (the notation will usually be either “F.O.B. Origin” or “F.O.B. Destination”).

F.O.B. means “Free On Board” indicating that the consignor is free of responsibility for damage claims against the carrier, if any, at the point designated. The F.O.B. point is a negotiable item in the sale. We draft and supply BOLs routinely for our shippers.

2) A BUYER can SAVE MONEY (“a penny saved is a penny earned”) on transportation by selecting and paying the transportation provider (Broker or carrier) himself, electing not to have the seller do it for him. (He buys a product, selects the transportation provider, is interested in the shipment from beginning to end). Not as simple, but he is earning money by saving money, he is providing this service on behalf of himself).

This frees him to try and get the best or possibly the worst deal on freight on his own. Many occasional, small, or medium sized shippers get taken advantage of by carriers because they are not savvy (knowledgeable) credit approved, volume buyers of transportation. This is where having a good, honest, and cost effective transportation providing broker represent him as a recognized (by the carrier industry), savvy, credit approved, volume buyer of transportation.

CARRIER PERFORMANCE ENHANCEMENT occurs when using the right kind of broker because a good broker is recognized by the carrier as an important volume buying customer. Also as an entity who is able to effect his carrier reputation among his customer base for reliability and the honoring of hauling contracts. Every load is contracted in writing by the Broker to the Carrier. Brokers and Carriers have the ability to effect one anthers’ reputation publicly thru main loadboard Carrier and Broker Performance Reports.

This exertion of positive and negative pressure has a very positive influence on both parties towards the honoring of each and every contract (load). That is why a good broker writes a detailed contract for each and every load tendered to a carrier. You may order a load hauled verbally, then, your broker gets busy with contract negotiation, writing, and enforcement. We intend to be the right kind of good and reliable transportation brokerage to the benefit of our shippers and our carriers.