If you run a small manufacturing or distribution business, you’re probably wearing a dozen hats already. Freight carrier responsibilities might not be your full-time job, but it’s one of those things that must be right to keep your customers happy.
Here’s a breakdown to help you make smarter freight choices that align with your resources, risk tolerance, and business model.
Brokers for Small Businesses
In 2000, freight brokerage was a cottage industry, representing 6% of the trucking industry. Fast forward to 2023, and freight brokers handled more than 20% of all trucking freight. Here’s likely why:
- Instant Access to Capacity: You don’t have to call around. A broker can usually find a truck within hours.
- No Volume Commitment: You can ship once a week or once a month without negotiating annual contracts.
- Back-Office Help: Brokers handle paperwork, scheduling, and even claims.
- Competitive Rates: Brokers often bundle loads from multiple shippers.
This makes brokers a great option if your shipments are irregular, your team is small, or you don’t have time to manage a freight network.
But there’s a downside too, such as:
- Higher Total Freight Costs Over Time: Brokers add a margin to every load. While that margin may feel small on a single shipment, it adds up quickly for recurring lanes.
- Less Control Over the Carrier: When you book through a broker, the carrier is usually chosen by the broker, not you. That means you may not know who will haul your freight until after booking, and drivers may be unfamiliar with your dock, product, or procedures.
- Inconsistent Service and Communication: Many brokers operate transactionally. The focus is on moving the load, not building operational familiarity.
- Limited Accountability When Something Goes Wrong: If a shipment is late, damaged, or misrouted, responsibility can be murky.
- Safety and Compliance Gaps: Not all brokers vet carriers with the same rigor. For regulated or specialized freight, this creates exposure that small manufacturers often can’t absorb easily.
When Direct Carriers Might Be a Better Fit
That said, there are moments when going direct is worth considering, such as:
- Local or Regional Deliveries: If you ship the same route every week, a local carrier might offer better consistency.
- Strong Personal Relationships: Trust matters. If you’ve found a reliable carrier who knows your product and your customers, that relationship can be gold.
- Cost Control: While brokers add value, they also add margin. If your freight costs are rising, comparing a few direct quotes is worth the effort.
Also, a direct carrier relationship can evolve into true partnerships, including:
- Dedicated equipment,
- Priority capacity during tight markets, and
- Process improvements over time.
We’ve seen family-run operations thrive by combining a trusted local carrier for regular shipments with a broker for everything else.
Freight Shouldn’t Be a Full-Time Job
You have enough on your plate. Freight shouldn’t become another stressor. Building a relationship with a freight carrier can simplify your workflow and give you access to better rates and capacity than you’d get on your own or with a broker. Knowing when and how to go direct helps you stay in control.
The best solution? Go direct when consistency and trust matter most. Call Hillcrest Transportation, and let’s start building a relationship today.
