It is a very common question “Should I use a freight broker and why?” But, before you find out the reasons why you should use a freight broker, the question is, “What is exactly a freight broker?” The simplest answer would be a role of freight brokers is to arrange freight shipping between a carrier and shipping companies in Kuwait. They need to transport goods with an authorized carrier that wants to provide service. In exchange, the broker receives a small commission, that’s how freight brokers make money, of course.
Why hire a freight broker?
In one word, efficiency. A good freight broker will add value to your supply chain. That will become your competitive advantage and it helps you to stay competitive. You should consider using them to manage your shipping and logistics functions. Big companies got big and successful because they focused on what they did best. The most of the companies use third-party logistics providers such as freight brokers. It is a “cause-and-effect” relationship. Learn everything about the costs of air freight in Kuwait and make the first step.
What is the role of freight brokers?
What are the advantages of using a freight broker and why you need them? If you want the best service and to reduce your expenses hire air freight Kuwait. These are some of the reasons why you should hire freight brokers and what is their role. So, let’s start.
Save, save, save
Save time, save resources and save money! What is more best than that? With your freight broker, you will have the benefit of your own shipping department. And also, the important thing, without the expense of your own dedicated shipping department. Brokers have buying power and they can provide you volume discounts, lowering your shipping expenses. You also do not need to spend time on invoices, audits, and training. If you hire them you can focus on your business and other obligations you also have.
Flexibility and scalability
A role of freight brokers is to provide you more (or less) capacity as your business goes through its natural cycles. So there is no need to stress over seasonality or sudden troughs in your business, which can happen, of course. If you want to start a business in Kuwait, for example, it is a smart decision to have a good partner.
Freight brokers do the best shipping, it is their main responsibility. Working with one allows you access to their knowledge. It also allows you to access the latest technology for shipping reporting and visibility into your logistics and that is one benefit for you when using them. You will have real-world experiences, for sure. You can not learn everything from the books or the internet. They have expansive carrier networks. It will provide you with many advantages in the shipping department. Also, it provides access to capacity that otherwise would be unavailable or very costly. If you want to ship items, ask them for the right cargo transportation method for you and your items.
A partnership – work for both of you
Your freight broker works for you and their job is to put your interests first. When you succeed, they succeed too and when your business grows, so does theirs too. When it comes down to helping you and your business, they will do everything in their power to do so. It is the definition of a partnership. Hiring a freight broker builds a good partnership. It’s their job to make sure your shipment gets from A to B without problems and stress. Hiring a freight company is a good choice for your business.
Who are the players in the industry are and what they do?
An industry of this enormity needs a wide range of participants to successes. Some of the titles may be a little confusing, and some of their roles may overlap. But to keep things as simple as possible, let’s look at who the players are and what they do.
- Freight broker – As we mentioned before this is the middleman and a role of freight brokers is to connect shippers and carriers.
- Carrier – It is a company that provides transportation for goods: “private” type is a company that provides transportation of its own cargo. “For hire” type is a company that is paid to provide transportation of freight belonging to others.
- Shipper – An individual or business who has freight to move.
- Freight forwarder – They are actually completely different from freight brokers. Forwarders take possession of the goods, consolidate numerous smaller shipments into one larger shipment. They arrange for the transportation of that shipment using various shipping methods.
- Agricultural truck broker – This broker is small and operates in one geographic area of the country. They arrange transport services for exempt agricultural products.
- Import-export broker – Facilitators for importers and exporters.
- Shipper’s associations – They are organizations formed by shippers. Because they want to reduce transportation costs by pooling shipments. Actually, shipper’s associations are very similar to a freight forwarder. But, their service is limited just to their members. It means it is unavailable to the general public.
We hope that we helped you with explaining what is a role of freight brokers. Freight brokers will continue to improve the trucking industry by focusing on making both freight shippers and trucking carriers happy.