Basically, third party logistics suppliers are in control of supply chain management. They offer services leading to costs and time saving. Additionally, they supervise logistics operations and stimulate the efficiency of the supply chain.
Third party logistics brokerage companies are also known as 3PL providers.
Logistics Brokerage Explained
Since the transportation logistics industry is so complicated, there is a need for logistics brokerage to keep the trucks or trains running on schedule. Before you make a decision to involve a freight broker, you need to understand what the broker takes off your plate and the responsibilities that will be on your side.
A freight broker acts as an arbitrator linking a shipper and a freight service supplier. Freight brokers are capable of specializing in established types of freight like equipment shipping on bulk size, lowboys, bulk tanker or other types of freight haulage. Brokerage logistics therefore refers to a process where a logistics company links businesses that transport goods with trucking companies at a fee. There are benefits that come with working with a freight broker. These are such as;
● You save up on time and money. The time you pass when digging through load boards and calling shippers is time that you could spend transporting your shipment and making profit. Freight brokers are in charge of handling labor-intensive legworks.
● Freight brokers are of great help by providing consistent leads. If you establish long term relationships with a broker, you get connections to ideal loads as well as dedicated freight.
Logistics Brokerage Companies
Before we discuss top freight brokerage companies, it is important for you to select the best freight brokerage companies and shippers that can withstand any storm. There are a few factors that you should put into consideration when choosing a logistics company. These are;
● A freight broker has to be flexible and reasonable. Moreover, the company should have the capacity to manage a large network of carriers.
● You should ensure that the brokerage company you are taking into consideration has formal licensing and authority to operate.
● You should probe into the memberships and certifications of the freight brokerage to help you comprehend whether the logistics company in question is highly recognized.
● The brokerage company should meet the needs of your industry.
● It is important for you to consider the freight rates of the freight brokerage company of your choice.
Logistics brokerage is a very competitive market. Any company possessing stability and jurisdiction that equates their reputation together with cost effective services could be the possible logistics service company for you.
Below is a list of top logistics brokerage companies for you:
C.H Robinson Worldwide
This company is the biggest and most triumphant freight brokerage company in the world. C.H Robinson company has experience of over 100 years in the logistics brokerage industry. The company is best for big and constant shipment. It operates from four continents.
Total Quality Logistics
This company is a private freight brokerage company that has been in operation since 1997. TQL works out of Cincinnati, Ohio, although the company offers services all over the United States. The company is well known for handling shipments with certain needs.
Coyote Logistics
Coyote logistics is popular for its elastic, intermodal and extremely scalable machinery solutions that provide fresh freight ideas to customers. The company is best for fresh and cost effective supply chain solutions.
XPO Logistics
This is a global logistics provider of supply chain solutions that operates from Greenwich , Connecticut. It was established in 2011. XPO logistics deals with modern cargo with comprehensive shipments.
Echo Global Logistics
This company is a supply chain management and transportation service provider. It operates out of Chicago, Illinois and was established in 2005. Echo Global Logistics’ main aim is to simplify transportation management. It is best for small to medium level businesses.
Logistics Brokerage Services
While there are several articles discussing the differences between motor carriers and freight brokers, only a few of them compare a freight broker to a logistics services provider (LSP). The main difference between LSP and freight broker is that LSP has a broad display of tools and services while freight broker lacks tools at its disposal.
Conclusion
Freight brokers over several services of value that assist freight carriers run well structured and profitable operations. Logistics brokers are a source for consistent loads, take care of the tedious legwork that are engaged in finding freight, debug issues that might occur during shipping and more.
