Paul Killmer, Vice President of Sureway Transportation, recently had the pleasure of being the guest on the “Beyond the Road” podcast. They covered the model of freight brokerage that Sureway has today and the history of how we got here as a company. Take a listen to get his insight on the various brokerage models, benefits of each, and how to choose the right freight brokerage company for you. Read on for some of the key takeaways of the fun and informative conversation.
Defining the Traditional Model of Freight Brokerage
In a traditional brokerage model, operations are typically broken down into two departments, sales and carrier representatives. It’s the sales team’s job to find and book loads, while the carrier representatives are responsible for developing and maintaining relationships with trucking companies. Working together, both departments help to provide shippers the truck capacity needed to move their freight.
Understanding the Agent Model of Freight Brokerage
Under an agent model, freight agents are independent contractors who operate under the authority of the parent freight company. These independent contractors don’t receive the salary benefits of other brokerages but instead are paid solely off commission. Instead of working with other departments to fulfill customer needs, agents are responsible for the entire journey of the freight. This includes quoting freight, booking loads, finding carriers, working with the shipper, trucker, and consignee to get freight from point A to point B. The parent company takes care of all the other things like billing the customer and paying the carrier.
Highlighting the Perks of the Agent Model
There are many advantages of working with a transportation company like Sureway that uses an agent model. Since agents work solely off commission, they’re highly motivated to build and maintain quality relationships with customers, shippers, and carriers. Because agents are so heavily involved in the entire process of the freight’s movement, they develop excellent insight on strengths of certain carriers in their networks, which in return helps them match customers to carriers that meet their needs and goals.
Want to take the deep dive into brokerage models, their benefits, and how to choose one? Tune in to the full episode here: Beyond The Road Podcast: Ep.10 Agent Model Freight Brokerage