Consider the differences between a matchmaker and a middleman. The matchmaker makes the introduction and then steps back and watches the relationship blossom. In transportation, a freight broker traditionally serves as the middleman between shippers and carriers but remains an intermediary rather than fading into the background.
Freight brokers arrange deals — typically single shipments of goods from points A to B. It’s been done this way for decades, as freight brokerages really took off after the trucking industry deregulation in 1980. But just because business has always been done a certain way doesn’t mean that’s the best way. A freight broker should be more of a matchmaker than a middleman — make the introductions, help get carriers and shippers talking, and then step back and enable the two parties to enjoy a direct, open, and honest business relationship.
Connecting Carriers and Shippers
Today it is possible for carriers and shippers to feel like partners. They can work together through a full disclosure platform with a 100% pass-through of all accessorial charges. They can be introduced by an anti-broker.
Here are just a few reasons why the old way of doing business doesn’t cut it anymore:
Lack of Control
Once a load is given to a broker, the shipper loses the ability to manage that freight.
Zero Visibility
The shipper may not even know the name of the carrier hauling their load, let alone where the freight is.
Technology Gaps
Many freight brokers still rely on manual, labor-intensive systems that are prone to human error. These technology gaps can lead to inefficiencies in the procurement process.
No Synergies
Without a direct relationship, shippers and carriers cannot work together to improve their cost, service, and capacity metrics. And if a shipper is moving loads through any broker, the contracts dictate a direct relationship can no longer occur via back solicitation clauses.
Unreasonable Markups and Hidden Fees
Freight brokers make money by charging shippers more for a load than they’re paying a carrier. Sometimes, it can be a lot more. It’s the ultimate goal for brokers – maximize the margin.
Damaging Risks
Brokers can damage shippers’ reputations with such allegations as: “This shipper does not pay stop charges,” or, “Detention starts after four hours.” And, when freight brokerages go under (and it happens a lot), carriers may not get paid for services rendered.
Test Drive Facilitates Relationships Between Shippers and Carriers
Test Drive is an anti-broker. We act in the best interests of both the shipper and carrier. Our platform enables shippers to test carrier performance moving actual shipments via our authority. With our carrier testing, we serve as a strategic resource for shippers to procure trusted transportation providers.
Our model provides complete transparency to all parties, giving shippers the ability to know who is hauling their freight and giving carriers the power to build direct relationships — without a middleman’s involvement.
As the freight industry’s first anti-broker, Test Drive eliminates brokers’ hefty hidden fees and promotes transparency, fostering open and mutually beneficial relationships between shippers and vetted carriers. We operate with a fixed margin, utilizing advanced technology for optimal matching and facilitating seamless transitions to direct contracts, ensuring fairness and efficiency for all parties in the logistics process.
At Test Drive, we don’t need a middleman to provide:
- Complete transparency
- Open lines of communication
- Full accountability
Request a quote today.