The Steps to Find a Good Freight Broker

adam • October 13, 2022

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The Steps to Find a Good Freight Broker

Businesses that ship freight must contend with a lot of moving parts. Occasional late deliveries or damaged shipments are inevitable. At the same time, miscommunications and delays can amount to a sizable cost to a business. This is especially true when shipping food or beverage, or temperature controlled commodities. When businesses grow, these shippers might not have the time or resources to handle all their transportation. But delivering products on time is critical to a company’s success. Growing businesses often depend on freight brokers and third party logistics partners to help manage their supply chain. In North America, there are thousands of logistics companies, but what factors make a company good, and why should shippers use them? This article takes a look at what makes up a good freight broker, and offers tips for shippers in selecting a provider to take care of their transportation.

What is the Role of a Modern Day Freight Broker?

Shippers know that a freight broker acts as an intermediary between them and the carriers. Their primary role is to build a dense carrier network and relationship that offers dependable service year round. Brokers sources and guarantees capacity from a network of reliable carriers and then manages the operations required to fulfill the shipper’s supply chain. Freight brokers also handle the communication between the shipper and the carrier, and ensure that the load gets picked up on time and arrives when it should at the final destination

Shippers like working with freight brokers because it eliminates the need to manage their own transportation. Instead of hunting for their own capacity, vetting carriers, negotiating for rates, tracking the freight, and planning or optimizing routes, companies can outsource those tasks to a transportation provider who handles their entire logistics.

Freight brokers use their industry experience to improve delivery times, optimize a transportation strategy, and prevent damage to freight. They can usually offer better rates because they handle large volumes of freight from multiple shippers, and pass the savings on to their customers.

What does a “Good Freight Broker” Provide for Shippers?

3PLs and the freight brokers who work for them offer a large incentive for shippers due to their ability to source capacity from a large network of carriers. Unfortunately, companies are sometimes wary of using brokers because they assume the service is more expensive than using an asset-based company. This perspective is not necessarily true, however, because sometimes relying on a single carrier can backfire and become more expensive in the long run, especially when the provider lacks capacity, or if and when their rates increase.

This bias might cause shippers to miss out on lost opportunities to optimize their freight network. An over reliance on one transportation procurement strategy potentially causes companies to miss out on transportation providers who offer a better price and service. It can also leave organizations vulnerable to downturns and economic shocks. Over time, these costs can add up. Here’s a few reasons why shippers should consider freight brokers for their next loads.

Optimizes transportation

A freight broker’s sole job is to manage transportation. They maintain a network of vetted carriers and spend their work days finding optimal schedules and routes for shipper clients.

Cut costs

Freight brokers help shippers cut their transportation costs. By creating a large network of carriers, they can build shipping capacity on shipping lanes advantageous for their customers and provide the most competitive rates on a shipper’s behalf.

Handles Traffic Management

When a shipper books their own loads, they must negotiate contracts, monitor transportation and track and trace their carrier to ensure that the truck arrives on time.. These operational tasks can become overwhelming, especially for carriers with high volume freight, and that’s why most companies use 3PLs and their broker partners to help manage their freight.

Maintain Carrier Information

Shippers who manage their own freight are not just responsible for securing their loads. They also have to keep up with a carrier’s regulatory compliance and licensing. In contrast, 3PLs employ the manpower and technology needed to monitor compliance on a shipper’s behalf and streamline this process so it’s not a concern.

Provides Different Transportation Modes

Does a shipment need to be transported via dry van or bulk shipping? What about cold chain requirements? Should the load be moved via LTL? The benefit of using a freight broker is that some of them specialize in various types of transportation, making it easy to ship single pallets, partials, or full truck loads.

The Seven Steps to Select a Good Freight Broker

Look at FMCSA Data - The first step towards finding a reputable freight broker should be to check FMCSA data. A reputable brokerage will have a license from the FMCSA - this ensures the brokerage has been verified, and takes safety and professionalism seriously. Licensure can change over time, so it's important to check back in periodically.

Check Insurance and Broker Bonds - It’s equally important to make sure a freight broker is bonded and insured. This is what protects shippers in the event that cargo gets lost or damaged during transportation. Brokers who operate without insurance can even incur criminal or civil penalties in certain cases. If a freight broker has not maintained their insurance and other documentation, that will eventually catch up to them, and by extension, to their customers. It adds risk and damages a shipper’s reputation.

Look For Adequate Experience - Try to work with a freight brokerage company that has been in operation for at least three years. That’s the amount of time it takes to gain experience and develop a large network of industry contacts needed to build out an adequate carrier pool. As an added bonus, experienced freight brokers will have more industry relationships and customer feedback to draw from. If the brokerage company is newer, find out if the owner has experience working for a different freight broker.

See if a Broker is Easy to Work With - How easy or difficult is it to tender loads to a broker? If it takes a long time to get a load assigned to a carrier, that spells deadweight and wasted time for a business. Another thing to consider is the tendering process. Do shippers send loads to a broker via a platform? How much time is required on the phone? The whole point of working with a freight broker is to make transportation easier.

Find Out if a Broker Offers Multi-Modal Transportation - Most brokerages will procure transportation via truck. But some also offer intermodal, or even multi-modal options. A brokerage that offers full truckload, LTL, middle mile, and intermodal transportation will have the flexibility to move freight in a way that does not compromise it. It’s also useful if capacity in a particular mode is limited at a given time.

Look at the Metrics - Data doesn’t lie. A prospective brokerage’s credit score reveals how well they manage money and, by extension, their business. A low score (or a lot of debt) suggests a broker may make late payments to carriers or is otherwise irresponsible. Brokerages should also be open about how long it takes to pay their carriers. 25 - 30 days is typical across the industry - more than that isn’t a good sign.

Read Reviews - Reviews from both shippers and carriers provide perspective on a freight broker’s professionalism. If a brokerage has mostly five star ratings, it indicates that they have overcome obstacles to provide value to their clients. More than a few one star ratings, on the other hand, is a red flag.

Is a Freight Brokerage Right for Your Freight?

There’s no one industry that requires a freight broker’s services more than others. Each vertical and company operates differently, and has different needs. The biggest indicator that it might be time to find a broker is that a company has started to wonder if having a transportation partner would help operations or improve the bottom line.

Shippers turn to freight brokers to reduce transportation costs and time spent procuring transportation. They may struggle with their current transportation strategy, but lack the bandwidth to configure a new one. Some shippers turn to a freight broker when nothing is wrong at all, but they want to further optimize transportation all the same. By taking shipping operations off the table, freight brokers provide an essential service to shippers. Shippers look for brokerages that have a solid framework, like Entourage Freight Solutions. Entourage has both the technology and the logistics network to help customers move freight promptly, in the right lanes, and with the right equipment. Entourage specializes in hauling food and beverage, temperature controlled commodities, and with expedited shipping. Give Entourage Freight Solutions a call today to take transportation needs off the table, and ensure consistent on-time delivery.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.