WHAT IS A FREIGHT BROKER?

FACT:  Nearly all goods transported in the United States move by truck at some point in the journey.  Trucks carry over 60% of the annual gross tonnage moved in the U.S., making trucking the “backbone” of the intermodal (AIR, SEA, LAND) transportation network.   U.S. Freight Brokers refers to this extraordinary FACT as the "Truck Supply Chain."


Article:  What is a Freight Broker?

By: U.S. Freight Brokers LLC, Copyright 2011-2015



The following concepts are provided for the benefit of non-industry professionals to help create a shared understanding of the transportation marketplace.  Each day millions of big rig tractor trailers (also known as semi-trucks,18-wheelers and motor carriers) move freight throughout the United States from one destination to another.  These rigs pull various types of cargo ranging from perishable foods, consumer goods to general cargo.  In fact, 70% of all manufactured and retail goods transported within the U.S. on an annual basis are via truck.  To put things into perspective, the U.S. transportation marketplace generates over one trillion dollars in revenues annually, of which U.S. trucking represents well over $600 billion.  U.S. Freight Brokers offers the concept of "U.S. Strategic Trucks" and "U.S. Strategic Freight" to help the reader comprehend the complexity and enormous scale of this industry. 

Freight Broker - Meeting The Motor Carrier's Challenge

A typical long-haul outbound load covers a distance of 1,000 miles.  For motor carriers, the outbound haul is where they can selectively evaluate a load's profitability prior to accepting a contract to move it.  However the return haul, known as a back-haul, is harder for the carrier to estimate in advance since in most cases the back-haul is not known until the carrier is near its current load's destination.  It is not uncommon for long-haul truckers to have to wait in a location for a few days for a suitable and profitable back-haul load that allows them to return at or near their operating base.  The alternative to waiting is to "dead-head," a trucking term describing when a truck travels without a load, sometimes up to several hundred miles, to meet a new load or to travel back to base empty.  Therefore, coordinating a well paying back-haul load within a suitable geographic area allows strategic truckers to maximize profitability since trucks that are not hauling freight are still subject to fixed overhead costs (e.g., insurance, medical, licensing fees, etc).  The objective of the strategic trucker is to maximize loads carried while reducing dead-head miles.  Hence the motor carrier's challenge of finding a suitable back-haul load immediately is critical to maximizing profitability, and more importantly, getting back home to family and friends as soon as possible. 


Freight Broker - Meeting The Shipper's Challenge


To help explain the shipper's challenge the reader must understand that trucking capacity, unlike the airline industry, is very difficult to forecast accurately beyond seven days.  Complicating the issue is that shippers' delivery schedules are not consistent and frequently change based on the needs and consumption patterns of its end-users.  To illustrate, think of your favorite retailer and a popular product it carries.  Your retailer will order replacement inventory as needed, and depending on the season, this could be daily, weekly, or quarterly.  Once an order is placed, the retailer calls the manufacturer (i.e., the shipper) to provide more inventory.  To fill this order, the shipper must locate available transportation to get the freight to the retailer just in time for the big sale.  Witness the birth of a market where hundreds of thousands of different retailers all place shipping orders each day in a dynamic and sometimes chaotic marketplace.  The shipper's challenge is to quickly identify, quality, reliable and available transportation in an ever increasing fragmented marketplace.

 

U.S. Freight Brokers


U.S. Freight Brokers are uniquely positioned in the marketplace place to bring success to our shipper and carrier client base by leveraging our knowledge and expertise of the industry to maximize profitability, reduce costs, and enhance operations.  U.S. Freight Brokers helps shippers locate and identify “U.S. Strategic Trucks” that matches their hauling requirements, thus allowing shippers to focus more on their core business.  Likewise, U.S. Freight Brokers helps carriers locate and fill their trucks with “U.S. Strategic Freight” that matches their asset's geographic location thereby maximizing profitability while reducing greenhouse gas emissions and enabling a greener supply chain.  U.S. Freight Brokers are a driving force for successful shippers and carriers.  Put our knowledge and experience to work for you, call US at 1-800-311-8115 or visit www.usfreightbrokers.com

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