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Why are freight brokers needed?

Freight brokers are needed because they provide a valuable service to both shippers and carriers by facilitating the movement of goods and helping to coordinate the logistics of transportation. There are several reasons why freight brokers are needed:

  1. Access to a wide range of carriers: Freight brokers have access to a network of carriers that can handle a variety of shipments, including large or specialized loads. This makes it easier for shippers to find the right carrier for their needs.

  2. Expertise in transportation logistics: Freight brokers have a deep understanding of the transportation industry and are skilled at coordinating the logistics of shipments, including finding carriers, negotiating rates, and handling any issues that may arise.

  3. Cost savings: Freight brokers can often negotiate lower rates with carriers due to their volume of business and relationships in the industry. This can result in cost savings for shippers.

  4. Improved efficiency: Freight brokers can help streamline the transportation process for shippers by handling the coordination and paperwork involved in shipping goods. This can help shippers save time and focus on their core business.

  5. Technology: Freight brokers typically understand the different technologies used in logistics and often help shippers with implementation of technologies such as a TMS.

Overall, freight brokers are an important part of the transportation industry and play a vital role in facilitating the movement of goods from one location to another.

Currently, this is Chaine's main customer today. Brokers use technology, are very professional and customer-focused, and they mainly look for shippers and help them connect with trucking companies. The reason brokers exist is that there are over 1.3M trucking companies (also called carriers), and 97% of them are small (own less than 5 trucks). And in trucking, there is so much that can go wrong (i.e. break-downs, traffic delays, etc..) that brokers often require a lot of "high-touch" or high amount of communication and contact with trucking companies throughout the lifecycle of each load. This is where Chaine helps with a lot of communication automation. Currently, about 50% of the freight brokers' cost is the operational cost (or labor) due to the high amount of contact with carriers. They are only making 5% profit margin, thus a solution like Chaine can make a huge impact on their bottom line.