In the world of logistics, where the smooth flow of goods is paramount, the role of a freight broker within a third-party logistics (3PL) firm is pivotal.

These unsung heroes play a crucial role in ensuring that products get from point A to point B efficiently and cost-effectively. But what exactly is a freight broker at a 3PL firm, and what do they do?

Defining the Freight Broker:

A freight broker acts as a liaison between shippers and carriers, helping to facilitate the transportation of goods. They are the middlemen (or women) who make it their business to connect those who have goods to transport with those who have the capacity to move them. When this role is embedded within a third-party logistics firm, it adds another layer of expertise and resources to the equation.

The Key Responsibilities:

1. Matching Shippers with Carriers: One of the primary functions of a freight broker is to find the right carrier for a shipper’s cargo. This involves analyzing the nature of the cargo, its destination, and other relevant factors to determine the best transportation solution.
2. Negotiating Rates: Freight brokers are skilled negotiators. They work to secure favorable rates for their clients, balancing cost-effectiveness with the quality of service provided by carriers.
3. Managing Logistics: Beyond simply booking shipments, 3PL freight brokers also oversee the entire logistics process. This includes tracking shipments in real-time, managing documentation, and handling any unforeseen challenges that may arise during transit.
4. Compliance and Regulation: Navigating the complex world of shipping regulations and compliance requirements is another crucial aspect of a freight broker’s job. They ensure that all necessary permits and paperwork are in order to avoid any legal issues during transit.
5. Problem Solving: Freight brokers are often called upon to troubleshoot issues that may arise during transportation, such as delays, rerouting, or damaged cargo. Their expertise in logistics allows them to find quick and effective solutions.
6. Continuous Communication: Effective communication is at the heart of a freight broker’s success. They maintain ongoing contact with both shippers and carriers to keep everyone informed and ensure a smooth process.

The Benefits of 3PL Expertise:

When a freight broker is sent a load to book, they often have a more-accessible carrier network – as that’s all their focus is on. It’s a known fact that third party logistics firms are more agile when it comes to shipping capacity. And most of the time, brokerages like BM2 Freight are utilizing top-tier technology that makes things move a lot faster. And, with the help of dedicated freight specialists, we’re able to help customers avoid fines and violations for not staying up to date on current shipping regulations.

Interested in becoming a freight broker? Check out our Careers page and send us a message!

In the world of logistics and transportation, efficiency is paramount.

This is where Less-Than-Truckload (LTL) shipping comes into play.

When it comes to moving goods, companies are always seeking cost-effective ways to transport products from point A to point B. LTL shipping is a crucial component of the transportation industry, designed to accommodate smaller loads and maximize efficiency. In this article, we’ll delve into what LTL shipping is and explore the requirements of an LTL load.

What is LTL Shipping?

LTL shipping is a freight transportation method that caters to shipments that do not require an entire truck trailer for transportation. Instead of dedicating an entire truck to a single shipment, LTL shipping consolidates multiple smaller shipments from different customers into a single trailer. This approach optimizes space and reduces costs, making it a cost-effective choice for businesses with smaller loads.

Requirements of an LTL Load:

To utilize LTL shipping effectively, shippers must understand the requirements for this method:

1. Smaller Shipments: LTL is best suited for shipments that do not fill an entire truck. Generally, shipments weighing between 150 to 15,000 pounds (68 to 6,804 kilograms) qualify for LTL shipping. These shipments are often too large for parcel carriers but not large enough to justify a full truckload.
2. Palletization: LTL shipments are typically palletized or crated. Palletization helps protect the goods during transit, facilitates easy loading and unloading, and ensures efficient use of trailer space.
3. Proper Packaging: Items within an LTL shipment must be adequately packaged to withstand the rigors of transportation. Proper packaging reduces the risk of damage during transit and is essential to prevent damage to other cargo in the trailer.
4. Accurate Weight and Dimensions: Shippers must provide accurate weight and dimensional information for their shipments. This information is crucial for carriers to determine pricing and to ensure that the cargo can be safely loaded and transported alongside other LTL shipments.
5. Labeled and Documented: Each shipment in an LTL load should be clearly labeled with shipping and delivery addresses, tracking numbers, and other relevant information. Proper documentation, such as bills of lading and shipping manifests, is essential for smooth handling and tracking.
6. Freight Class: LTL shipments are assigned a freight class based on factors like weight, dimensions, and the nature of the goods. This class determines the shipping rates, so accurate classification is vital.

Have more questions about your LTL loads? Get in touch with us and our LTL advisor can answer any other questions or concerns you might have.

Happy Shipping!

In the vast and complex world of transportation, the smooth movement of goods from one point to another is essential for the global economy to function efficiently. Among the key players in this intricate network are freight brokers, unsung heroes who play a pivotal role in connecting shippers and carriers, facilitating the movement of goods and services across various industries.

This blog post aims to shed light on the importance of freight brokers in the transportation industry and the value they bring to the supply chain.

Bridging the Gap:

Freight brokers act as intermediaries between shippers and carriers, bridging the gap between the two and creating a harmonious connection. Shippers focus on producing goods, while carriers specialize in transportation services. The freight broker’s expertise lies in understanding the unique requirements of each party and effectively matching them to optimize the logistics process. By doing so, they ensure that goods are moved efficiently, promptly, and at the best possible cost.

Expertise and Industry Knowledge:

Navigating the transportation industry can be overwhelming, with its regulations, compliance requirements, and fluctuating market conditions. Freight brokers bring extensive knowledge and expertise to the table, acquired through years of experience in the field. They keep abreast of industry trends, carrier capacities, shipping routes, and pricing fluctuations, enabling them to make informed decisions and offer valuable insights to their clients.

Efficient Cost Management:

Freight brokers are adept at finding the most cost-effective transportation solutions for shippers. Due to their extensive network of carriers, they can negotiate competitive rates, ensuring that shippers don’t overspend on shipping costs. Moreover, they help carriers optimize their routes, making the most of their resources and reducing fuel expenses. This cost management benefits both parties, fostering a mutually beneficial relationship in the long run.

Flexibility and Adaptability:

In the dynamic landscape of transportation, unforeseen circumstances like weather disruptions, capacity shortages, or unexpected surges in demand can throw a wrench into the logistics process. Freight brokers are skilled at adapting to these changing conditions swiftly. Their ability to find alternative solutions and reroute shipments in real-time helps keep the supply chain intact, minimizing delays and ensuring business continuity for shippers and carriers alike.

Compliance and Documentation:

The transportation industry is heavily regulated, with various legal and administrative requirements that need to be met. Freight brokers play a crucial role in ensuring that all necessary permits, licenses, and paperwork are in order. By taking care of these compliance matters, they save shippers and carriers valuable time and resources, reducing the risk of penalties and operational disruptions.

Risk Mitigation:

Freight brokers act as risk managers, protecting their clients from potential liabilities and pitfalls. They carefully screen carriers, ensuring they are properly licensed, insured, and financially stable. This risk assessment helps prevent accidents, theft, or damage to goods during transit. Additionally, freight brokers often offer cargo insurance options, providing an added layer of protection.

If you’re in need of reliable freight services, we’re always here for you! Request a quote through our online form.

Brokerages seem to be a dime a dozen, but that’s not always the case. We’re breaking down five things all retail shipping and supply chain associates should be looking for when choosing the right brokerage to ship with.

As the American Trucking Associations’ website states, trucking still remains the primary mode of freight transportation.

Seasoned shippers know what a reliable broker looks like. And they understand they are necessary for busy season rushes like back to school and holiday shopping.

But if you’re just getting started, how do you know which brokerage is the right one?

Here are five things all shipping and supply chain associates should be looking for when working with brokers:

1. On time delivery rates

Imagine this: you’re the supply chain manager at a big box store. You’re responsible for managing the amounts of products your company needs at the store at any given time. It’s peak season, and your first month at the job. It’s important you build a relationship with a broker that understands your industry and can guide you on trends so that your shelves aren’t under or overstocked.

2. Industry knowledge

As we mentioned above, nothing beats industry knowledge. Brokers who have been in the game for a long time are able to help shippers understand the highs and lows of consumer habits. They also closely monitor economies around the world to get a better idea of how products are flowing, if there are any hang ups at major ports, and how the freight industry will be impacted. Since trucking is the primary mode of freight transportation, it pays to have a seasoned broker on your side. It’s also important to note the training that brokerages are putting into their employees. At BM2, we have training department that sticks with all new hires for the first 90 days of employment.

3. Dedicated point of contact

Having a dedicated point of contact for your shipments makes everyone’s life easier. Our teams are structured in a way that allows for all shipments to have that main contact, so you know exactly who you are dealing with. And our offices are staffed 24/7. When our brokers aren’t physically in the office, our After-Hours teams are. Carriers and shippers know that if they call our hotline, a human will be at the end of the other line ready to help.

4. Compliance

Drivers can face major repercussions if they aren’t operating with the right authority or insurance coverage. They also have to keep their trucks at optimal condition to avoid safety fees and violation tickets from the Commercial Safety Vehicle Alliance. If your driver is struck down with a fee or loses their license, your product isn’t arriving on time. And if you’re handling it yourself, you risk losing money by having empty shelves. If you’re working with a broker that doesn’t have a dedicated compliance team, how do you know your carriers are following all safety regulations? And if your product requires special shipping instructions, are you able to ensure they meet those requirements? This is where specialized brokers with compliance teams come in handy.

5. Updated technology

Technology has taken the world by storm, and it helps brokers and carrier service teams do their jobs better. Just like retailers need technology to scan inventory, run checkout lanes, and surveillance their stores, brokers need reliable technology to monitor shipments. For instance, our real-time tracking software gives the most accurate location readings so you can run your supply chain better. With EDI, MacroPoint™ and FourKites©, business intelligence platforms that help decrease costs and an online tracking platform, we’ll keep you connected to your shipments.

Choosing the right broker for your business can be tough. These five steps will help you get started when choosing a trusted broker to handle your retail and consumer packaged goods shipments.

As always, we’re here to help. Check out our Expertise page to view the different types of service offerings we have or request a quote through our online form.