5 Tips when Working with Freight Brokers
Freight brokers are one of the main contacts trucking companies use when requesting work. Connecting and working with the most prominent brokers can be a daunting task as most require a certain amount of experience and one missed appointment time on a load can result in you getting blacklisted. Here are some tips when dealing with Freight Brokers of today’s market
1. Freight Brokers want peace of mind
When it comes to a broker who has a shipper depending on them they require premier communication and service. In order to make a relationship with a broker you need to become the number one contact on their speed dial for loads. Find an up to date tracking system that will beat Macropoint every time such as Samsara or Spireon. Companies such as these track not only your location in real time but at the same time track your speed as well as your fuel intake. Not only are these numbers extremely useful at the end of the year but they show the Broker that you are ahead of the trucking technology curve.
2. Be agreeable and patient.
I guarantee that you will deal with a toxic broker throughout your time inside of the trucking industry. However, if you maintain the ability to be agreeable and patient while working with these set brokers then you will be more likely to receive more work in the future. I cannot tell you how many stories I have heard about trucking companies with hostile drivers or dispatchers with bad attitudes which prevent future relationships to be made.
Whenever you try to drop your routes inside of a less than amicable shipper you will find that in the end your patience will be rewarded, whether it be detention pay or a simply thank you by the broker for waiting, that nod is one of future business. One never thinks to write about this subject but Trucking is a different beast with many different characters in the industry. The best thing to do is get along with whom you are working with before you end up without work or even worse without a truck.
3. Brokers want the best rate possible
When dealing with Brokers the biggest and most important detail when working with each other is a number. Write this next note down because it has saved me time and money throughout my journey, Learn how to read people’s emotions through the phone when negotiating a rate.
If a Broker is in need of your services he will seldom ever let you know that in order to play his best hand. Freight Brokers always have a desired rate up their sleeve. Empathize with them and realize that with every load they broker they make any surplus on the desired rate. Using words phrases like “Let’s be Transparent” or “Shoot me straight on the rate” are going to go a long way because just like any other business to business negotiation they want the best rate in mind.
However before dealing with a broker ensure you scour the load boards you use in order to get a feeling of how many loads are really out there. You have ZERO bargaining power in a city where there are only 2 loads with your desired route. You will see this commonly in States like Colorado or Washington. However you will have a better chance at receiving an expedited rate or specialized call in heavy Shipping areas such as Houston TX or Laredo TX or even California depending on the season. It is unprofessional to be haggling when your truck is among 100 others with 5 loads on the board. Realize your only making money whenever you are on the road with a loaded trailer and that will improve your negotiation skills with brokers and even help you make a few friends in the process.
4. Truth is an Honest Mans Pillow
Lying to a broker is an obvious bad business practice. Such as stating you are 30 minutes away but in reality your 2 hours away from the shipper…with traffic. Be Transparent in your dealing with Brokers because as soon as you understand the situation and report it, the broker has no choice but to help you on the load itself. You are technically contracted with them anyways so the best thing to do would be to report a situation whether its a tire blowout or family issue and work with them to set up a new appointment on either side.
This in the end builds rapport and that is the goal of working with brokers. You seldom want to stay bouncing around from city to city ensuring that you find the best load possible and then eventually finding no loads in a desired area. Instead focus on your hometown brokers and find a round trip route whether it takes 2 days or a whole week it will bring you home as well.
5. If a Rate is Too Good to be True, It Probably is
Booking a load for a great rate is actually quite possible depending on the market and the need of that exact broker. Shippers have paid full truckload rates to just ship 2 pallets on a 52 ft dry van. Its Possible and its out there but never expect it. Most brokerages with low rates are the ones who have the loads dedicated and in hand because a shipper will always jump at a lower annual rate.
Brokers will also however over promise in order to get your truck on site just in case another falls off only in turn to cancel out on you 30 minutes before the departure time. Given you better receive a Truck Ordered Not Used (TONU) for your lost time it is a bad business practice that still happens in the spot market. If the rate is high then do your due diligence. Check the Brokers MC number with your Factoring company and see if there are any reviews on google or even check their Facebook and website for credibility. Most Truckers who have bad experiences try to tell the world about it using Google or Facebook. It is always best to do a search to ensure you learn from others mistakes before making them yourself.
Find transparent and communicative brokers to work with. They are most likely the ones who are always trying to be available to ensure the load arrives on time. Make their job as easy as possible and you will eventually get compensated for your hard work. Create those mutually beneficial relationships and it will fuel your business for years to come!
Andrew Gomez
Andrew@AJGTransport.com