Surviving these unprecedented times of e-commerce growth and volatile freight markets takes a team effort. One of the most vital members of the supply chain network is a freight broker. One of the most impactful benefits of using a freight broker is the relationship itself. When a shipper or carrier works with a dedicated freight broker, the association formed can mean the difference between growth and stagnation, according to DC Velocity. While there are a host of perks shippers and carriers can enjoy, the main benefits of using a freight broker can be summarized as follows:
Reduced Freight Spend
Keeping tabs on the costs associated with security, capacity, and transporting goods within budget is an ongoing balancing act. Reducing freight spend while maximizing profits for customers is the ultimate goal for any transportation service provider. Most shippers and carriers quickly realize that the benefits of using a freight broker include an overall reduction in freight-related expenses, fees, and surcharges. With the proper guidance and professional expertise leading the way, freight brokers make it much easier to manage costs and reduce freight spend at all levels.
A Trusted Carrier Network & Improved Visibility
When looking at the benefits of brokerage services, one perk that cannot be ignored is the immediate access to vetted and dependable carriers. Professional freight brokers know which carriers and shippers have the best track records and which ones are best suited for a particular type of freight load. They will also take it a step further and work with logistics managers on tracking and monitoring loads and shipments, providing additional levels of visibility and transparency into the freight and transportation processes.
- Increased Throughput
The benefits of using a freight broker can also help boost overall throughput and improve productivity throughout the supply chain. Such brokerage services can help prioritize loads, improve shipment visibility, reduce per diem and demurrage fees, offer port drayage services, and maintain control over the supply chain. Boosting quantity and performance with improved productivity and scalability will enable supply chain managers to adjust and adapt to changing market trends and customer demands more efficiently.
Port Drayage Services Results in Fewer Risks & Fees
Demurrage fees are most commonly issued when a shipment of cargo or containers exceeds the time allowed to sit at the docks to be loaded. Delays and longer loading and hold times create a backlog at the docks, so fees assessed help keep this to a minimum. Likewise, a per diem is the fee associated with maintaining equipment and other supplies longer than previously agreed. One of the great benefits of using a freight broker is that they will oversee vital but time-consuming tasks to help keep shipments moving and keep these related fees to a minimum. When product sits at port for days, it can’t get to market and the whole business suffers. A port drayage service provider, who also provides a freight brokerage service is able to combine both disciplines to reduce risks and fees, and drayage headaches at ports so importers get their goods quicker and improve their most critical business metrics.
Less Worry Over Storage Costs
The final example of the great benefits of using freight brokerages for transportation management, intermodal shipping, and port drayage services is using a freight brokerage that also has warehousing assets, which allows for storage costs that are lower. Temporarily a load may need storage at a warehouse while capacity for inland moves via truck are procured. In turn, the shipperes see lower total storage costs and fees, and provide more financial controls to the shipper to reduce total logistics spend. Keeping a productive and manageable schedule allows loads to be brought in and out with greater speed and precise Inventory movement, shelf restocking, and warehouse management becomes more manageable. It also becomes easier to manage assets and resources with a broker handling all the details behind the scenes. This additional assistance reduces the stress and worries about when and how storage and inventory concerns are solved.
Take Advantage of the Benefits of Using a Freight Broker by Connecting with the Port City Logistics
Freight brokers often are among the most vital of all the third-party partnerships within the modern supply chain. They understand the industry, keep tabs on changing trends, monitor important data regarding capacity and rates, and help organize special requirements for unique shipping situations. The benefits of using a freight broker have allowed for enhanced performance and increased productivity, which will ensure the continued growth and success of freight management and logistics. However, it is critical that BCOs can find a provider they can trust while providing port drayage, warehousing, and freight brokerage to provide total control in times of volatility and tight capacity. When shippers can’t trust their freight providers, they lose control and can’t keep their promises to their customers. At Port City Logistics, we leverage our relationships, assets, and networks to consistently deliver on our commitments, so shippers can deliver on theirs. Contact Port City Logistics to get started today.