Most people are not aware that there are different levels of being a freight broker; they just know that they have to find one to help them ship their goods. But the freight market is expanding, and the freight brokerage market, according to Verified Market Research, is expected to surpass $13.78 billion by 2028. That growth will increase competition and lead to trouble finding and securing more clients as shippers or drivers. Freight brokers can also take other steps to make it easier to manage marketing and lead generation services within the network. But there is also such thing as being a "freight broker of choice." If you want to be known for your expertise in shipping and logistics, then understanding this designation is essential.
What Is a Freight Broker of Choice?
A freight broker of choice is a business that has an excellent reputation for shipping goods and providing quality customer service. They are known for their expertise in the field and are often the first choice for companies looking to ship cargo. They're essentially preferred brokers that a shipper or trucking company may turn to first when they need cargo capacity or a load to fill a truck. It's all dependent on whether the broker is serving a carrier-like or shipper-like role.
What Are the Benefits of Being a Freight Broker of Choice?
The benefits of being a preferred choice freight broker are numerous and include:
- Increased profits – You can charge higher rates when you are a freight broker of choice because clients know that you can get them the best service and rates possible. You can also access transportation and freight finance more easily.
- Greater market exposure – A broker of choice typically has a more extensive client base than those who are not brokers of choice. This gives you greater exposure to the market and allows you to do more business.
- Increased credibility – As a freight broker of choice, you will have a reputation for being an expert in the shipping industry. This enhanced credibility allows you to attract new clients more easily.
- More negotiating power and access to lower carrier rates – A broker of choice typically has more bargaining power than those who are not. This allows you to get the best rates and services from carriers.
- Greater efficiencies – By being a freight broker in good standing, you can streamline the shipping process for your clients. This ability, in turn, leads to increased efficiencies and cost savings and an easier time balancing profits and expenses.
- Faster turnaround times – A broker of choice can usually turn around shipments quickly, which is important for companies that need to meet tight deadlines.
How to Become a Freight Broker of Choice
Figuring out the best way to become a preferred broker can be difficult, but it’s best simplified into these four steps:
- Be knowledgeable about the shipping process – When you are a freight broker who earns this high rating and reputation, you need to have a deep understanding of the shipping process. You should be able to answer any questions your clients may have and help them navigate through the complex world of logistics.
- Have a robust network of carriers – A freight broker of choice has an extensive network of reliable carriers. This allows them to get their clients the best rates and service possible.
- Offer excellent customer service – The best freight brokers always put their shipping and transportation company clients first. They understand that exemplary customer service is key to building long-term relationships with their clients.
- Stay up-to-date with industry changes – The shipping industry is constantly changing, and a freight broker of choice needs to stay up-to-date with the latest changes. That includes keeping track of new regulations, technology advancements, and carrier trends.
Know the Value of Freight Broker of Choice and Enable Faster Freight Broker Payments Through ComFreight's HaulPay
As a freight broker of choice, you'll likely experience cash flow headaches because you're often waiting 30–60 days for payments from your clients. This delay can be a significant problem as it presents quite the cash flow issue. As a result, it can cause you to run out of cash and disrupt your business operations. One way to reduce these cash flow headaches is by using freight factoring. This service allows the business to receive immediate payment for the invoices, which reduces the amount of cash they need to operate. To learn more , request a demo of ComFreight's HaulPay services today.