5 Reasons Businesses Should Ditch Freight Brokers

freight brokers

If you’ve tried to arrange a large shipment, you’ve probably run into ads for freight brokers. A freight broker is a person or company that acts as the middleman between shippers and carriers. They find the carrier, arrange the shipment and track the load hauled. But is all that really necessary? The answer is a resounding no

If you’re thinking about using a freight broker (or you already use one), there are several reasons why you should reconsider. 

1. Freight Brokers Are Misleading

Customers looking for trucking services often get the impression that freight brokers are required. That’s exactly what brokers want people to think. 

We were reminded of this when we recently quoted a move for a company . They were comparing prices, and after receiving our quote, they immediately reached out and asked who the carrier would be and if we would be using multiple carriers. This was a huge, multi-billion dollar company, and they had no idea it was possible to work directly with carriers. If it hadn’t been for an overlap in communication, they never would have never found out. 

Needless to say, we got the business. We’re confident they’ll never return to using brokers. Because of our amazing customer service, but also because of the next item on this list. 

2. Freight Brokers Hike Up Prices

If you knew something was a waste of money, you wouldn’t pay for it, right? Freight Brokers are not working for free although their fees are not transparent to customers. They make their money by charging the customer more for a load than they are paying the carrier. These markups can range from 25%-200%. This is always part of doing business with a freight broker. Some brokers additionally charge fees related to various tasks in the freight cycle. Most shippers don’t know how to find a direct carrier and brokers capitalize on this. They claim to help customers by navigating the complicated shipping world for them- except the shipping world isn’t nearly as complicated as they make it out to be. 

Brokers argue that they simplify the customer’s experience; just make one call, and they handle the rest! The truth is, you can schedule a shipment with a direct carrier like BYX in a single call, too! And without a significant markup. In short, when you go through a broker, you’re handing them your hard-earned money for a service that does very little to make your life easier and in fact, takes you away from directly communicating with the person transporting your shipment. 

When you contact BYX directly, you can still schedule a shipment in a single call or quick online form, track your shipment progress on our online system, receive real-time updates on your load direct from the company transporting it and you save money by cutting out the middleman.

3. Using a Broker Takes More Time

Customers use brokers because they think it will save time. Unfortunately, freight brokers actually suck up more time. To get an update on shipment status, a customer must call the broker, wait for the broker to get ahold of the carrier, and then wait for the broker to call them back. Why go through all of that? When you work with a direct carrier, it’s just that; direct. 

Communication with BYX is both faster and easier than working with a broker. BYX is also equipped to handle large shipments efficiently. Freight brokers always select the cheapest freight rate to maximize their own profits. To do this, they turn to owner-operators that have a single truck, small companies of carriers with subpar service that will cost you more in the end, none of which can service the loads as quickly and efficiently as a well established, true asset-based company can.

4. Their Customer Service is Sub-Par

In addition to struggling with high-volume orders, brokers have minimal support staff, dubious insurance coverage and outdated or non-existent tech. If you do need to make an insurance claim, it’s not going to be easy. Updates are often hard to receive because they have to filter through multiple owner-operators and the broker before they get back to you. The broker also has his hands full trying to juggle this same, overly complicated process with multiple, disjointed drivers. Brokers act as their own customer service team, and many don’t do it very well. They also know very little about trucking.

Alternatively, BYX has a robust customer service team and a dispatch team that customers can call directly. Have a problem? No problem! We work with you in real-time and to get you immediate answers. 

5. Brokers Sever the Connection Between Shipper and Carrier

Saving time and money aren’t the only reasons why direct carriers are the better option. When you work with a carrier like BYX, you have the opportunity to build an ongoing relationship with business owners just like you. Just like you, we want to make our customers happy, and we do our best to make it happen.

Have questions? Just reach out, and we’ll be happy to help!

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