Is it better to use brokers or fgo direct to shipping company to lower Freight Costs?
This was selected as Best Answer Tony, Brokers often bring the “less desirable” and low volume freight – if your freight fits that category, brokerage may be the way to go. However, given the market conditions and the concerns about the viability of YRC, I would be cautious to engage brokers. The main value proposition of a broker is to save money, but if YRC closes their doors, the market will quickly shift to a seller’s market and carriers will selectively choose the most profitable freight and they only way to get picked up will be with a direct relationship. (By the way, I don’t want it to happen, but we all must manage risk as well as costs. YRC’s stock is floating at $1.50.) Not all brokers have the same rates. So you have to shop brokers just like carriers. One major benefit is technology, most brokers now have technology that allows you to remain independent and switch carriers easily. Most brokers are pretty good at billing correctly, so the need for freight audit goes down (b
