Looking for Good Freight Broker??

The transportation industry is highly fragmented. There are thousands of trucking companies, freight brokers, and freight forwarders. Some are large logistics companies with many different services such as 3pl, heavy haul shipping, van shipping and warehousing. Most companies though are small businesses who specialize in one or two services.

Logistics companies tend to be either “asset based” or “non asset based”. Asset based carriers own their own tractors, trailers, warehouses, or other equipment. Non Asset based typically are freight brokers and freight forwarders. There are advantages and disadvantages to working with both.

Asset based carriers come big and small. Most small carriers align themselves with larger carriers to feed them business. This relationship works out well for both companies, as the larger carriers can fill gaps in their capacity and the smaller carriers don't need to spend as much effort finding freight. Smaller carriers tend to specialize in certain geographies, or certain types of equipment such as rgn's which are capable of heavy equipment hauling.

Larger asset based carriers tend to cater to larger businesses whose needs demand quite a bit of capacity and dedicated equipment. Smaller carriers are better fits for smaller businesses with less frequent or more irregular scheduling needs.

Large non asset based logistics companies prefer working with larger businesses as it is more cost effective to have fewer staff selling to fewer companies with larger needs. Smaller non asset based logistics companies are more able meet the needs of smaller businesses who may have fewer transportation service requirements.

Matching freight that needs to be shipped with trucks that are available at the right time in the right place is sometimes very challenging. The laws of supply and demand come into play when trying to ship truckload freight. As a result freight quotes and freight costs can swing wildly at times.

The cost of freight shipping is determined by supply and demand, fuel costs, seasonality among other factors. One week your truckload shipping might cost $1,000. The next week it might cost $1,500. This can be caused by a single company who may have completed a large production run creating great demand for trucks in a certain location. Alternatively, freight rates can drop dramatically if there is a lack of freight in a certain location.

A good freight broker like RM Logistics can help smaller businesses match their freight needs with market conditions.

Finding a Good Logisitc Company

If you are a manufacturer, distributor or company who needs their equipment moved around the country, controlling transportation costs is a big concern. For some companies, transportation expenses can reach 15% or more of total expenses. Fortunately there are some actions you can take to keep these costs under control.

Seek a reliable logistics company. A good logistics company will be able to provide competitive freight quotes and assist in managing your costs whether you need truckload shipping or LTL services.

Consider the hidden transportation costs. Sometimes the lowest freight quote is not the best option. If the logistics company cannot produce a truck when you need it, your customer does not receive their order on time, or your shipment gets damaged in transit, the actual cost of trying to save a little money is greater than the savings.

Plan ahead. If you need a truck immediately, truckload shipping quotes are likely to be very high as finding the right truck in your area at the right time can be difficult. At times there can be a bidding war for transportation services if many companies need to ship their freight at the same time and there are not enough trucks in the area.

Be flexible. Having time to work with allows logistics companies to find truckload carriers who will move your freight shipments at more reasonable rates as they can then plan their capacity more reliably.

Use a credible logistics company. There are thousands of logistics companies in the industry. A little known fact is that many logistics providers have poor credit or do not pay the trucking companies they contract with. This makes it very difficult for them to find you trucks when you need them and will need to give you higher freight rates so they can attract a truckload carrier that is willing to work with them.

Use a knowledgeable logistics company. An experienced logistics provider can offer services and advise that will save you money by capitalizing on their expertise. They can review your transportation costs and identify ways to reduce your freight shipping expense.

A reliable logistics company such as RM Logistics can help you manage your transportation budget.