June 17, 2024

A Brokering Guide for New Authorities

Starting out in the freight industry as a new motor carrier is both exciting and nerve-wracking. One of the most important relationships you’ll need to build is with freight brokers. These intermediaries play a huge role in helping you get loads, negotiate rates, and ensure everything runs smoothly. Let’s dive into how freight brokers can help new motor carriers and offer some practical tips for making these partnerships work well.

What Do Freight Brokers Do?

Freight brokers are the matchmakers of the trucking world. They connect shippers who need to move goods with carriers who can haul those goods. Brokers don’t technically own trucks or cargo, but sometimes they will have a sister company that does own trucks; instead, they use their extensive networks and industry know-how to pair shippers with the right carriers. They handle logistics, negotiate rates, and make sure all parties follow the rules, making the whole process easier and less risky for everyone involved.

Key Responsibilities of Freight Brokers

• Finding Loads: They match available loads with suitable carriers.
• Negotiating Rates: They negotiate rates for both shippers and carriers.
• Managing Paperwork: They handle documentation and ensure regulatory compliance.
• Tracking Shipments: They monitor shipments and keep communication clear.
• Solving Problems: They address any issues that come up during transit to ensure timely delivery.

The Challenges for New Motor Carriers

New motor carriers, often called “new authorities,” face some unique hurdles as they try to establish themselves. Here are a few common challenges:

• Building Trust: Without a proven track record, it’s hard to gain trust from shippers and brokers.
• Getting Loads: Competing with experienced carriers for loads can be tough.
• Managing Cash Flow: Handling finances can be tricky with delayed payments and upfront costs.
• Navigating Regulations: The complex landscape of regulations can be overwhelming.

Related: How to Work With Brokers As A New Carrier

Related: Top 4 Legal Tips for Freight Brokering

How Freight Brokers Can Help

Freight brokers can be a lifeline for new motor carriers, helping them overcome these challenges and build a strong foundation for success.

1. Access to Loads: Freight brokers have established relationships with many shippers, providing new carriers with a steady stream of loads. This access is crucial for keeping your trucks moving and generating revenue. Brokers help find loads that match your equipment and preferences, reducing the time you spend looking for freight.
2. Rate Negotiation: Brokers understand the market and can negotiate rates with shippers. For new carriers, this means you can secure profitable loads without having to drastically underbid. Good rates help you cover your costs and maintain healthy cash flow.
3. Ensuring Payment: One major risk for new carriers is dealing with payment delays or non-payment. Reputable brokers often have systems in place to ensure you get paid on time. Some even offer quick pay options, where you get paid within a few days of delivering a load, helping you manage your cash flow better.
4. Industry Expertise: Freight brokers bring a wealth of industry knowledge. They can offer valuable insights into market trends, regulatory changes, and best practices, helping you navigate the complexities of the industry and make smart decisions.
5. Handling Administrative Tasks: Brokers take care of many administrative tasks, like managing paperwork and ensuring compliance with regulations. This support allows you to focus on your core operations—delivering goods safely and efficiently.

BONUS: Brokers that Work with New Authorities

For new motor carriers, the road to success in the freight industry can be filled with challenges, but partnering with the right freight brokers can make the journey smoother and more rewarding.

Here are some brokers that work with brand new authorities, you can download the full list here.

• Total Quality Logistics
• CH Robinson
• Choptank Transport
• Circle 8 Logistics
• Doug Logistics
• England Logistics

Related: Download Our Free List of Brokers

Brokers provide access to loads, negotiate rates, ensure timely payment, and offer valuable industry insights. By building trust, communicating effectively, and maintaining professionalism, new carriers can forge strong partnerships that pave the way for long-term success.

As the industry evolves, staying informed about market trends, technological advancements, and regulatory changes will be crucial. With the support of knowledgeable and reliable freight brokers, new motor carriers can navigate these changes effectively and thrive in the competitive world of freight transportation.

Related: Double Brokering in Transportation

Not All Brokers are Created Equal

Like about anything else, not all brokers are good. There are brokers who commit fraud, pay terrible rates, and are just plain shady. The great brokers are a minority but do exist. You may have to work with four (4) who are bad or average before you find a great one. Look for brokers who are established, pay well, pay on time, and are easy to work with.