Kamis, 15 Juli 2010

Freight Brokering

If you are the manufacturer of one or more products and you need to ship them to one or more destinations

, you will probably benefit through the use of a freight brokering service.

A freight brokeringservice facilitates the process of moving goods over both short and long distances by having a network of transportation companies with whom they work, available to handle a customer's shipping needs. They are able to get you the most suitable form of transportation, be it truck, rail or air, and do it at the lowest possible cost.

How does it work? Well, for example, suppose you manufacture snow plows in Raleigh, North Carolina and you need to ship them to various points around the country. You may need to ship 10 to Detroit, 15 to Chicago, 5 to Buffalo and 3 to Seattle. You will likely ship these Less Than Truckload (LTL) items with several different motor carriers. Your business is manufacturing and not shipping, so you call on the experts to help you.

A freight brokering service will match your shipments up with the proper carrier that serves the area you need to ship to and look for the most reliable and cost effective means to do so.

Sometimes, loads can be combined on to one truck and form a truckload which is usually much cheaper per pound than an LTL shipment. Truckload rates are usually a flat negotiated rate based on mileage. A company can save serious amounts of money by choosing the proper shipping methods.

As another example of how a broker might help to properly expedite your shipments, imagine you need to send 500,000 pounds of steel from Pittsburgh, Pennsylvania to Los Angeles, California. The cost of hiring 10 or more trucks to drive 3,000 miles across country could be prohibitive. Instead, a good broker would take advantage of shipping by rail which is a much cheaper option. They may use a combination of rail and truck (intermodal service) to get your product from point A to point B, but you don't have to worry about the details.

Your paperwork will be organized by the broker and you will only need to review/sign the documentation such as the shipping order and bill of lading. Using the services of a freight broker will simplify your business and allow you to concentrate your efforts on the actual production and sale of your product

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