The Difference Between a (3PL)
Freight Broker and a Carrier
What is the difference between a Freight Broker and a Carrier, and what are the benefits of using a freight broker? There is a difference between the broker and the carrier, and there are huge advantages of using a Freight Broker/ 3rd Party Logistics (3PL). In the highly competitive field of transportation, we are all really on the same team but with different roles. The freight broker needs drivers, trucks, and trailers. The carrier needs for their drivers to continually move freight and revenue coming in. This is where the carrier needs the freight broker. We work together.
To have a good working relationship between the freight broker and the carrier, the carrier must be paid on time and at a reasonable rate. It is also vital to have excellent communication between the two for a successful and pleasant experience for the shipper. The shipper, being the company needing the commodity transported.
The 3rd Party Logistics Freight Broker- A third-party logistics (3PL) freight broker provides the management flow for moving commodities from one location to another. They are a part of the logistics department, providing many types of supply chain services. They are the middleman bringing shippers and carriers together to keep the shippers’ freight moving and delivering successfully. Commonly referred to as brokers, freight brokers, agents, transportation brokers, third party logistics, property brokers, etc.
The Motor Carrier is a company providing truck transportation. There are two types of motor carriers. There is a private motor carrier. This is when a shipper provides truck transportation of their own cargo. Then there is the “For Hire” carrier paid to provide transportation of others cargo and are liable for any loss or damaged freight.
The Advantages Of Using A 3rd Party Logistics Freight Broker:
1/ Freight Brokers are known for their expertise in transportation management and the connections needed to move cargo.
2/ The brokers’ logistics department assures that the driver/carrier is licensed and current through the (Federal Motor Carrier Safety Administration) FMCSA, they research and confirm if the carrier’s insurance is up to date and carries enough cargo insurance to cover the cost of the commodity in case of theft or damage. The freight brokers’ logistics department obtains proof of carriers Compliance, Safety, Accountability (CSA) scores.
3/ The Brokers have advanced technology and staff to keep up with the everchanging needs of transportation for shipping.
4/ The brokers have access to many different modes of transportation to move freight along with a deep pool of carriers that have the trailers needed and run the specific lanes needed.
5/ They are known for their quick problem-solving skills.
6/ The broker can provide storage, inventory control, and various other aspects.
7/ The broker is known for their negotiation skills and management skills while due diligence is exercised.
8/ The broker is in communication with the driver and the shipper up until delivery.
9/ The freight brokers’ negotiation skills can save the shipper money and cut dramatic costs for limiting additional payroll and training. In turn, this frees up the shipper for upcoming projects requiring attention.
AMP Specialized Logistics, in partnership with Logistic Dynamics, has a team of experts that are consistent award winners for successful freight moves and Stellar performances. Give us a call for your next transportation needs at 832-663-5227. It’s your cargo and our reputation. We are the professionals!