Advantages to Utilizing Freight Brokers(3PLs)

Advantages to Utilizing Freight Brokers(3PLs)

There several reasons utilizing freight brokers, so I will list the largest reason such as added capacity, minimized costs, control over liability, flexibility over transportation costs, and save time.

• Working with a broker instantly boost capacity. Depending on the size of the freight broker, they may work anywhere from one thousand to over fifty thousand carriers. This kind of capacity increases the chances that the freight broker can provide truckload capacity for 20-40% less costly than, if you’re asking your current providers that are not brokers. Either way, compare the rates between the freight broker and your providers. That’s how you minimize costs.

• Brokers work with thousands of carriers to call upon to negotiate pricing therefore has more flexibility on its pricing.

• Brokers will save you time, by utilizing a broker it gives you access hundreds of available trucks within minutes.

• Shippers can gain more control over the amount of liability it can require from a freight broker. In 2011, now over half of the states in the USA have passed “Anti-Indemnity Laws.”

Shippers that require its transportation providers to hold shipper harmless from any and all losses. regardless whom is negligent. Anti-indemnity law protects motor carriers (not freight brokers-3pls in most states) and will void the contract as its against public policy for shippers to require the motor carrier to hold shipper harmless from any and all losses by the shipper or not. The purpose of the Anti-Indemnity is to shift the 100% liability from the motor-carrier to balance the liability.

Links:
www.riskvue.com/articles/fs/fs0711a.htm
www.batlogistics.com

 

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