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Understanding this workflow from the Broker/Shipper and Broker/Carrier perspectives

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Booking a load with a carrier, from a Freight Broker’s perspective, has a lot of moving parts prior to the carrier calling you on one of your posted loads asking about it. 

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Here is the workflow, from a BROKER/SHIPPER point of view:

• Freight Broker contracts with the shipper to move loads for them, being approved by the shipper after sending over the Broker/Shipper packet (see above section for details).  This contracting can be done several ways, with cold calling being a common one.

• Shipper adds the Freight Broker to their email list daily for the loads that they need moved.  Shippers have a “target rate” that they are willing to pay for the loads being moved.  Sometimes the target rates are negotiable, sometimes not.  For example, if a shipper’s target rate for the load is $5000, this is the amount that the shipper is willing to pay.   NOTE:  Keep in mind also that you are not the only Freight Broker that the shipper is sending emails of their load list to.  Other Freight Brokers are competing with you to win the load (bid).  Whichever Freight Broker finds a truck at the shipper’s target rate, or even cheaper, wins the load (bid).  Plain and simple.

• Once the Freight Broker wins the bid for the load (by finding a truck and having the best target rate), the shipper will send what is called a LOAD TENDER to the Freight Broker.  The Load Tender contains details of the load.  The Shipper contact information.  The Freight Broker contact information.  The load details, including the pickup dates and times and delivery dates and times, the commodity, rate, weight, equipment types, special instructions, etc.

• The Freight Broker now takes the Load Tender information from the Shipper and re-enters the same information into their TMS (Transportation Management System).  All the information stays the same from the Shipper’s Load Tender, except the Shipper’s contact information is changed to the carrier’s contact information and the rate on the Load Tender is now changed to reflect the new rate that the carrier is going to be paid.  Remember, this is assuming a carrier has already been set up with your Freight Brokerage.

• Load is now booked for the carrier to deliver to the receiver.

 

Here is the workflow, from a BROKER/CARRIER point of view:

• Carrier calls the Freight Broker concerning a posted load and its availability.

• Freight Broker gets the Carrier’s MC number to see if they are set up with the brokerage.  One of two things will happen:   either the carrier is already set up or not.

• If carrier is set up with the Freight Brokerage, then negotiation of the rate will be discussed.  If everyone agrees with the load details, then a rate confirmation will be sent to the carrier for signature and return.  Load booked.

• If the carrier is not set up with the Freight Brokerage, then the Freight Broker will ask for an email to send the Broker/Carrier (see above Broker/Carrier packet section for details) packet to.  Carrier packets will either be a PDF file attached to the email OR a link to a website to complete.  This packet is to be completed by the carrier (or their dispatcher) and returned, along with copies of the carrier’s MC authority, Certificate of Insurance (listing the broker as a certificate holder), and a W9.  If the carrier also has a factoring company, then also include a copy of the Notice of Assignment (NOA).

• Once all the necessary paperwork from the carrier has been completed and returned to the brokerage, it is entered into the TMS system, processed and sent up to a compliance team for approval. 

• Once approval is complete, a Rate Confirmation is produced and emailed to the carrier for signature.  Load is booked.