Freight Brokers: Avoiding Disagreements with Carriers

Every freight broker agent understands the importance of providing excellent service to their clients. Because it is the money of your customers that keeps you in business, you naturally place a high priority on keeping them pleased. However, it's also critical to be a good partner to your carriers. After all, you don't have anything to give your consumer if you don't have them. When it comes to continuing projects, having solid relationships with dependable carriers can help a freight broker stand out.

Since those are the most fundamental parameters needed to hire a truck at all, things like rate, equipment type, and lane are easy to remember. It's usually around the finer elements of a rate scam that carriers and transportation brokers disagree. Any disagreements are usually the consequence of one of two things: a lack of clarity on a finer point of the contract, or a disagreement over how to solve an issue when one arises.

Be proactive in your approach

I chatted with our own Broker Bro, Joe, about how to avoid carrier disagreements. The first thing he recommended was to make sure the carrier is aware of all the details right away. Allow them to take those things into account when making their bid. Any hazards or specific considerations are part of the bid, and adding details later or not communicating them at all is a recipe for catastrophe. “If you ever presume the carrier knows something, you will be burned, rely on it,” Joe said.

Don't expect things to "just work out" either. You must become involved as soon as the carrier or shipper informs you of a problem. You're already at a disadvantage if you wait until the consumer files a fine or the carrier complains about not receiving full payment to start working on a solution. You should try to come up with a solution that everyone can agree on ahead of time. If something goes wrong, at least one side will receive unpleasant news, and reaching a positive solution will be even more difficult if the bad news is unexpected.

Of course, an exact and complete rate con is your most important weapon for avoiding difficulties. If there's a fine, you'll have to pay as a freight agent and want to pass on to the carrier, it needs to be included in the rate con. In the end, the rate arrangement is a contract between you and the carrier that specifies how this shipment will be handled. It's not just the paperwork you'll rely on to get the delivery done right; it's also the document you and the carrier will resort to if there's a dispute.

None of this implies that you must be flawless, or even that you can be perfect. There will always be some disagreements with carriers. Anyone could be a freight broker if keeping both parties pleased while moving freight was simple, but being able to manage what occurs after anything goes wrong and ensuring that both the customer and the carrier are satisfied is what distinguishes exceptional brokers from the rest. A great reputation and long-term partnerships with carriers.