Freight Broker, Load Board and Freight Marketplace…Do You Know The Difference?
Terms like freight brokers, load boards and freight marketplaces might be ones you hear often in trucking but they’re often used interchangeably and many people aren’t clear on exactly what they mean or which one best fits their operation or needs. Each of these play an important role in transportation logistics, but they’re also three very different options shippers and carriers utilize to get the job done. Do you know the difference in order to know what works best for your business? This should help:
Level 1: Freight Brokers (The Original)
Freight brokers are essentially the middlemen between shippers and carriers. This can be either an individual or a company that acts as a transportation intermediary. Brokers are typically hired by shippers to find qualified drivers or carriers to haul loads to their final destination. Not only do brokers negotiate pricing with the carrier and arrange transportation for the load, but they also track the load, manage its timely delivery and keep the shipper updated on the load’s status. In order to make money, the shipper pays the broker a certain amount to ship the freight. The broker finds a qualified trucker who will move the load for the best price and is able to keep the difference as payment.
Level 2: Load Boards (The Next Level)
A load board is an online system where people can post or search for loads that need to be moved. While freight brokers can use these load boards to connect shippers and carriers, it’s also used by truckers and shippers to network and match loads themselves. Some load boards are free to use while others charge for a monthly subscription plan. Utilizing a load board gives both parties a large degree of control over the process and an expanded audience, but also requires them to manage contacts, paperwork, billing and other processes involved with load transportation.
Level 3: Freight Marketplaces (The All-in-One, One-Stop-Shop)
Unlike a load board, a freight marketplace is an all-in-one solution for shippers and carriers. This is where Cargomatic shines. Truckers and shippers get connected and conduct their entire transaction via the marketplace. Shippers post the loads they need moved to the marketplace and are instantly quoted a price. Carriers get quick and easy access to job offers and load notifications via a mobile app. Truckers in the region are instantly notified with details and how much the jobs pay. With the Cargomatic marketplace, once a driver accepts a load and the connection with the shipper is made, we handle all the load tracking, billing and paperwork online in real-time. Within the world of the freight marketplace, shippers have access to free technology, on-demand capacity, real-time shipment tracking and alerts, paperless billing, just-in-time delivery, and fair pricing. Truckers receive quick payments within days of delivery at no additional cost and gain access to a diversity of different shippers with different shipment types and routes. This gives them the ability to maximize the use of their trucks, make more money and regain control over their routing and home time schedules.
Not sure which option is the best for you? Check out our next blog post, which will help you decide! Finding the Best Fit – Freight Brokers, Load Boards or Freight Marketplaces.