
Why Carrier Relationships Matter
By Alex Riemersma, Ally Logistics Pricing Analyst
In the fast-paced, competitive freight brokerage market, sourcing a unique, dependable network of carriers is key to providing quality service. After all, the backbone of supply chains everywhere are the carriers who move goods from Point A to Point B. It takes both time and effort on the front-end to procure a unique capacity and form symbiotic relationships with another form of customer, the carrier, but the benefits greatly outweigh the initial effort needed.
Developing relationships with your carrier base
For obvious reasons, when carriers have a good experience with a broker, it often leads to repeat business. If a carrier is willing to dedicate a portion of their fleet to exclusively haul freight for a brokerage, the time spent looking for loads or trucks on load boards is drastically reduced. This creates efficiency for the broker and carrier alike as a stable source of serviceable freight provides revenue streams for both parties without any added legwork.
A strong broker-carrier relationship also allows for flexibility amidst market fluctuations. It has been written about time and time again; the freight market is cyclical. When carrier capacity is tight, brokers must pay a premium to secure a truck on the spot market. When the opposite is true, carriers are left scrambling to find a load to keep their trucks in motion. Leaning on pre-existing relationships mitigates risk within the truckload market.
A solid relationship with your carrier base also comes with the benefit of transparency that consistent communication provides. Brokers are in constant contact with their carriers and vice versa. Between discussing load tenders, tracking freight, and rate negotiating, brokers and carriers become very familiar with each other’s needs and capabilities.
This familiarity allows for brokers to organize individualized, efficient programs for customers involving hook and drop, power only, flatbed, LTL, and drayage. Revenue generating opportunities unseen on load boards that require an agile and specific capacity add value for both broker and carrier alike.
Healthy broker-carrier relationships
Freight brokers play the role of intermediaries within the freight market. In some cases, brokers forget that customers exist on both ends of the shipper-carrier dynamic. When you view your carrier as a customer, the components of building a successful relationship come into focus.
A key component in building trust between a broker and a potential dedicated carrier is the broker’s willingness to listen and attempt to understand the carrier’s circumstances. If there is a delay in transit, a breakdown, or an unforeseen weather event, it would ultimately benefit brokers long-term to listen to their carriers before simply placing blame.
On the flip side of that coin, a carrier must be able to trust their broker has their best interests in mind. When organizing terms of business, brokers must operate transparently. Straightforward,
upfront negotiations and urgent communication of any changes or cancellations allow for brokers to meet the needs of a carrier while also giving the carrier leeway to pivot when unanticipated incidents occur.
Because logistics is multi-faceted, clear and concise communication is key on both sides of the equation.
Once trust has been established, the focus shifts to honoring the commitments both parties have made. If something is promised, it must be fulfilled. If there’s a mistake that prevents a promise from being carried through, responsibility must be taken and the party responsible must do everything in their power to rectify the situation.
Sometimes, unforeseen events transpire that prevent a broker from being able to fulfill their end of an agreement. A successful broker will listen to their carrier’s needs and act on their wishes when a commitment is not honored.
The value of a dedicated carrier base
Logistics is a saturated industry, so brokers must find ways to differentiate themselves from their competitors. Carriers are more likely to work with brokers who pay them on time. A broker who maintains accurate bookkeeping records and pays their carriers on-time will always have a leg up on the competition. Another key differentiator is the adaptation of new technologies. Brokers who have embraced new, more efficient tracking applications and alternate methods of communication with drivers have relieved some of the stress that constant verbal check calls place on drivers.
Without valued partnerships with trusted, adaptable carriers, brokers may have a much more difficult time meeting the many unique demands of their customers.
As the freight market continues its cyclical churn, new opportunities to form relationships will continuously present themselves. A broker’s ability to build a unique capacity hinges upon harnessing these opportunities and transforming them into mutually beneficial partnerships. With a multifaceted stable of carriers as their backbone, a broker can offer wide-ranging, consistent, above and beyond service to their customers.