A Freight Broker Agent is an independent agent who works with a licensed Freight Broker to serve as a Freight Intermediary in the Third Party Logistics, 3PL industry. Agents work with shippers and carriers to move goods and produce from the dock or point of production to the market by finding the necessary transportation resource. Agents have or develop customers who have shipment requirements, (known as shippers), and need on demand access to carriers but do not want to maintain trucks, (carrier resources), or logistics departments.
Freight Broker Agents work competitively and are paid a commission for finding resources for their shipper’s. Commission is determined by the difference between the amount the shipper is willing to pay and the cost the carrier charges for transportation between the the point of origin and the destination. In some cases Freight Broker Agents have contracts with their shippers, in other cases the contract is more of a working relationship with the proper credentials shared, and fees agreed to by standard tariff schedules, commodity, weight, and distance for the delivery.
The best Freight Broker Agents work independently under the license of a registered Freight Broker and focus on finding resources for their customers to move their goods and produce while building solid relationships with both shipping organizations and carriers. The organization that backs or holds the agents license is responsible for making sure the financial aspects of the transaction flow smoothly to insure the carrier is paid on time and the shipper is invoiced. A good agent will earn a decent living doing a valued service that saves all parties involved.
Organizations, shippers, use the services of Freight Broker Agents to save their organization the need to have in-house staff or overhead resources to manage the logistics associated with getting their goods to the market. Carriers use Freight Broker Agents to keep their vehicles moving in an optimized manner keeping the trucks loaded as much as possible. The 3PL industry, agents, connects these resources in demand situations to the benefit of all parties. The benefit is that shipping organizations can reduce cost and overhead by using the services of the agent to keep their goods and produce moving most effectively to market. The carriers can leverage the expertise and knowledge of the agent keep them loaded.
Freight Broker Agents work as win-win participants in the transportation industry and improve the efficiency in the overall economy.