**Better Shipping for Better Money**
Dear Shipper, Traffic Manager, Business Owner,
Have you ever thought about optimizing your shipping costs? Have you ever wanted better quality shipping for a lower price? We might have a solution. Let’s first take a look at how the transportation market works.
When a production plant, warehouse, or private party needs to move freight from point A to point B, they usually contact a freight broker to help them move their goods across the country. They pick up the phone and call a freight broker, let’s call him Mr. Robinson. Mr. Robinson gives them an estimate, let’s say $3000, to move a truckload of steel from Chicago, IL to Newark, NJ. Then Mr. Robinson sells this shipment to his friend, who also happens to be a broker, let’s call him DQL, for $2500. In some cases, it can be sold even further to another broker, let’s call him Spacestar, for $2100. This practice is called double or triple brokering. Everyone is happy except the customer and the contracting carrier.
Each of these freight brokers takes a commission, which varies from 15-35% depending on the market and the number of carriers available to transport the specific freight in the specific area. Let’s talk about the problems this practice creates:
1. **Higher Costs:** Customers pay higher transportation prices to satisfy the commission needs of the freight brokers.
2. **Reduced Carrier Rates:** After commissions are deducted by one or more freight brokers, the rate paid to the carrier (the company doing the actual transportation) is about half, or even less, of what the customer originally pays. This often leads to the freight broker’s inability to find a carrier to accept the job promptly, causing them to ask the customer for more money.
3. **Delays and Penalties:** Brokers delay finding a carrier to maximize their commission, leading to missed pick-up and delivery appointments. This results in fines, fees, and reputational losses for the customer.
4. **Misleading Information:** When load details are passed through multiple brokers, critical information can be altered or lost. Brokers may intentionally provide misleading information about the weight of the freight or appointment times to secure a carrier faster or at a lower rate, causing misunderstandings and frustration.
5. **Security Risks:** Customers lose control over the quality and identity of the people doing the job. This lack of transparency can facilitate cargo theft, which is on the rise in the United States.
6. **Lack of Expertise:** Many freight brokerage employees lack the knowledge and understanding necessary to handle specific transportation needs, resulting in subpar service. Many of them have no expertise of FMCSA rules and have poor idea how the transportation market works.
7. **Financial Risks:** If a transportation broker goes bankrupt, goes out of business, or disappears without paying the carriers, the customer may face lawsuits from carriers seeking payment.
**The Benefits of Shipping Your Freight Using Allfreighthub:**
1. **Savings:** Cut out expensive brokers and work directly with carriers, saving a significant amount of money.
2. **Control:** You gain full control over the shipping process and can set your terms. You make a choice who will be working with you.
3. **Free Load Board Access:** Post your loads for free. Carriers can contact you directly from the load board, ask for additional details, bid or book your load.
4. **Verified Carriers:** Only legitimate, registered, fully insured, and safe carriers have access to the board and bidding process. We handle agreements, insurance, and paperwork for your peace of mind.
5. **Transparency:** Know exactly who is picking up your load. You’ll have complete information on the company and the driver, eliminating the possibility of double brokering and reducing the risk of cargo theft. You can track your cargo’s exact location at any given moment.
6. **Clear Communication:** Negotiate directly with carriers about specific requirements and payment amounts, ensuring transparency and eliminating price speculations and mistrust.
7. **Direct Communication:** Information flows directly between you and the carrier, reducing the risk of altered or lost details. Everyone knows exactly what’s going on.
8. **Healthy Relationships:** Directly hiring transportation companies fosters a better working relationship. Carriers will strive to make you happy as a customer, and you will treat carriers better, ensuring timely loading and unloading.
Together we can bring the harmony into chaotic transportation industry and establish transparent, trustworthy and reliable relationships between all actors that will benefit everyone and bring our day to day interactions and working process smoother and more enjoyable. Control, savings and piece of mind