Many companies, especially the smaller ones, use freight brokers because they specialize in the shipping industry. They also have a large amount of technical resources to better assist both the shippers and the carriers.
Many companies rely heavily on brokers, but some of them, especially the one that are newly operating in this business, choose to use Free and Paid Online Load Boards instead, but as soon as they can afford they switch to an actual paid Broker Services.
One other point, people have made the mistake of confusing freight brokers with freight forwarders. Though they perform similar duties, even in the same area, but they are not the same.
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A forwarder will take actual control or possession of the cargo to be shipped, they make the arrangements (even consolidate smaller loads). A freight broker on the other hand never takes physical possession of the items that are to be shipped.
Now I am sure you are asking, “How can this be a bad thing”?
Well, it depends on several factors. Some of the key complaints are listed and explained below:
1. They Are Lowering The Load Price
Low prices seem like a good thing. We all love lower gas prices. Who can pass up a 2 for 1 offer? Even in the age of the internet coupon clipping still remains popular. So what can be bad about lower prices?
