In a lot of ways, shippers have been in the driver’s seat, proverbially speaking, when it comes to freight rates and carrier capacity. For the past two years plus, the much-ballyhooed freight recession has made it a buyer’s market for shippers. Yes, that doesn’t mean everything’s peaches and cream — there are still plenty of disruptions to deal with — but shippers have generally enjoyed more pricing power and leverage than previously.
But what happens when the joyride ends as it inevitably must, capacity tightens, and rates start to rise? Who’s going to be in your corner then, fighting for fair contracts and better pricing as a strong liaison to carriers, helping you grab capacity in a pinch? Linehaul spot market rates, to pick one example, aren’t going to stay flat forever.
That would be your trusted freight broker partner. And not just any freight broker, but one made up of battle-tested logistics professionals who know the players and the score. One that has your back, providing the right balance of price and service level. With the right broker partner, you’ll be in a good position to benefit from their expertise and carrier relationships, whether capacity and prices are up, down, or sideways.
Now is the right time to prepare and hedge against the risk of being caught out in a market turn. Among many other benefits, a strong freight broker partner can de-escalate the old “us vs. them” mentality of the shipper/carrier relationship. They work in a collaborative fashion with both parties, hitting the sweet spot that balances performance, cost, and efficiency.
Transparency is another plus in this equation. A strong broker partner that keeps the lines of communication open on pricing, capacity, terms, service levels, and shipment requirements helps foster more on-time deliveries at fair rates.
The Seven Perks of Freight Broker Partnerships
In a dynamic freight market, the need for a winning transportation strategy is critical. And a collaborative approach always wins out over an adversarial one. Teaming up with an experienced freight broker creates a “stronger together” dynamic, helping ensure service consistency, agility, and flexibility.
Expertise in Market Dynamics
An experienced freight broker stays on top of the market, keeping clients informed and acting in a consultative fashion. This includes intel on trends across modes (ocean, rail and intermodal, LTL, TL, spot, hotshot, etc.), regulatory issues, and supply chain disruptions. They use this knowledge to secure the most favorable rates for clients, whether capacity is tight or abundant.
Beyond rates and capacity, brokers work to ensure on-time pickups and deliveries. Overall service levels are managed better by brokers than by asset-based carriers, whose networks are static, not dynamic.
Access to a Larger Carrier Network
Freight brokers have established relationships with an extensive network of vetted carriers. This ensures broad geographic reach and the ability to handle diverse shipping needs across regions.
Unlike carriers who are limited by their fleet's size and capacity, brokers can tap into everything from large national outfits to smaller regional operators. This diversity allows them to match your shipping needs with the most suitable carriers to provide efficient, reliable service.
Risk Mitigation and Compliance
Freight brokers play a crucial role in managing compliance, insurance, and risk mitigation to reduce delays — especially in volatile, complex markets. They are well-versed in federal, state, and local laws, as well as international shipping rules, and make compliance part of the carrier vetting process.
Brokers also handle critical aspects of insurance coverage. They ensure all carriers have the necessary coverage for cargo, liability, and property damage. This level of oversight gives shippers peace of mind, knowing that their freight is protected against potential loss or damage during transit.
Technology Integration
Brokers use the latest technology on behalf of clients, including TMS, digital freight marketplaces, load boards, and freight management software. These advanced tools help them manage and secure reliable capacity and provide real-time tracking, enhancing visibility and operational efficiency.
Flexibility and Scalability
Brokers have the ability to scale transportation services based on a shipper’s fluctuating needs, whether dialing it up during peaks or growth spurts, or back down in slower demand periods. This adaptability, enabled by industry knowledge, technology, and carrier relationships, helps shippers maintain efficiency without over-committing resources.
Cost Control and Optimization
Brokers help control costs by optimizing shipping routes, reducing unnecessary miles, and consolidating shipments to maximize truckload efficiency. They continuously analyze market trends to identify cost-saving opportunities, including utilizing backhauls to minimize expenses.
Problem-Solving and Exception Management
Brokers can swiftly address disruptions caused by weather, construction, equipment failures, or regulatory snafus. They can quickly scour the network to find alternative carriers, routes, or solutions. Your goods keep moving with minimal delays, maintaining supply chain stability and reliability.
When the Freight Market Shifts, Will You Be Ready?
Shippers have had the luxury of paying lower freight rates for the past couple of years, with one call moving everything off their docks. But those days are going to be in the rearview sooner than they realize. Without a true partner on your side when it flips once again to a carrier’s world, you’ll be scrambling to get loads serviced, blowing up your budget with spot rates, and degrading the vaunted customer experience.
Wicker Park, a woman-owned logistics company and WBENC Certified Business, is that highly collaborative, strategy-minded partner. With freight brokerage experience across industries and carrier types, including dedicated fleet service, Wicker Park delivers efficiency, reliability, and overall supply chain resilience.
Wicker Park helps you win in any freight market. We leverage our expertise and deep industry relationships to facilitate the best outcome for both carriers and shippers, finding the middle ground between price and service while driving growth for all parties. To learn more about how Wicker Park can help you better manage market fluctuations, get in touch for a quick quote.
