What Does a Freight Broker Do vs a 3PL Logistics Company?
Are you looking to carry freight, or do you need to ship it? Great news! There are multiple moving parts that sometimes, it’s easy to drop the ball—miscommunication, delays, and even freight damage can cause substantial costs. Thankfully, when using a Freight Broker, you will feel comfort in knowing there is someone who has your back as well as a solid knowledge and understanding of the transportation industry. Additionally, this article will compare what it is like working with a Freight Broker versus a 3PL logistics agency.
What is a Freight Broker?
Are you looking for a middleman to liaise with shippers and carriers on your behalf? Rather than taking full possession of the freight, a Freight Broker streamlines communication between both the shipper and carrier to ensure a seamless transportation process. These industry experts step in to oversee the transportation process and ensure the handoff of freight goes smoothly between the carrier and shipper.
How Freight Brokers Operate
Shippers enjoy working with Freight Brokers because they make sure freight arrives on time, every time. Transportation Brokers are recognized as experts in the transportation and logistics realm. Serving as the main point of contact from point A to point B, working with a Freight Broker eliminates the need to negotiate with carriers to find the best transportation rate, plan routes, and truck freight. On the other hand, carriers enjoy working with Freight Brokers because they efficiently optimize their routes and minimize deadhead miles, which drives earning potential in a fraction of the time.
The Benefits of Using a Freight Broker
There are many unique benefits that come with using a Freight Broker. For instance, they significantly help reduce incurred expenses that can be easily prevented. With their strong knowledge of the transportation and logistics industry, they come up with helpful solutions that will not only streamline processes but optimize efficiency for both the shipper and carrier.
Freight Brokers come and go when needed. If you require infrequent assistance with shipments and deliveries, they come in to save the day when it is necessary. Lastly, a Freight Broker offers a variety of personalized solutions that will fit your transportation needs. No matter the problem that you’re trying to solve, a Freight Broker can come up with a solution that gets the job done.
On the other hand, here are some reasons why you should not work with a Freight Broker:
- If your business requires regular, systematic assistance with packing, shipping, delivering, managing warehouse functions, processing returns, and overseeing more complex supply chain needs.
- A Freight Broker only provides their support and expertise on an as-needed basis.
How Freight Brokers Differ from a 3PL Logistics Company
As mentioned above, a Freight Broker serves as a liaison between shippers and carriers during the transportation process. Some of their main services include:
- Overseeing all paperwork and communication while freight is in transport until its timely delivery.
- Offer flexible services while not utilizing any of your business’s equipment.
- Partners with multiple shippers and carriers.
Doing a complete 180, aside from Freight Brokers, there are 3PL logistics companies that can help with your shipping needs. Acting as a third-party logistics provider, 3PLs supply a wide range of outsourced logistics and transportation services, including:
- Freight Forwarding
- Load Management
- Dispatch
- Warehouse
- Inventory Management
- Supply Chain Management, and
- Technology Integration.
Additionally, 3PL logistics companies normally have an expansive network of encompassing carriers, suppliers, vendors, brokers, companies, partners, and more to help you across the transportation process.
For more information about 3PL logistics companies and what they do, please refer to our former blog here.
Get A Free, Personalized Quote from Us!
Before you contact either a Freight Broker or 3PL logistics company, determine your needs and decide whether you need occasional assistance or a full-time commitment. Then, you will place yourself on the right track to success. Lone Star Logistics is a federally licensed, non-asset-based freight brokerage that tailors its services to focus on customers’ unique cargo and industrial-based trucking needs.
Are you looking to take the next step in your logistics process? Contact us today to receive a free, personalized quote.
Have any questions? Lone Star’s 24/7 bilingual support team is here to answer your questions! Call 833-562-3722 or email info@lone-starlogistics.com to learn more information.
Don’t have time to send an email or hop on a call? Fill in our Shipper Request Form and a member of our team will be in contact soon!
