Brokerage: Not the Scam You Think It Is

What is the difference between logistics and brokerage? Is 3PL the same thing as being a freight broker?

Is starting a freight brokerage worth it?

The Google search section titled “people also ask” has no shortage of questions on what freight brokerage is, making money as a freight broker, or even why someone would want to use brokerage services. Outside of the logistics industry, the most common understanding of brokerage relates to financial investments.

Inside the logistics industry, brokerage can be viewed as a scam thanks to a rise in fraud and manipulation tactics within the last ten to fifteen years.

Handing off your precious freight to a company who is going to pass it along to a transportation company or worse – an individual managing their own trucking organization?

Unthinkable. Unbelievable.

And it certainly doesn’t help to see news stories about instances where freight brokerage goes wrong due to scammers and fraudsters. In fact, earlier this year FreightWaves posted a story about an Illinois trucking company that stole between 36 and 50 truckloads (which are valued at around $5 million) and are holding them hostage.

In addition, the act of double brokering exists, which adds another layer of mystery and separation between a shipper and the carrier delivering the final load. Double brokering involves a freight broker who tenders a shipment, and then the person who accepts the load turns out to be another freight broker, accepting the load under the guise of being a trucking company, before passing the load to an actual carrier for delivery.

What all that negativity, how could freight brokerage possibly be seen as a viable solution for the supply chain?

The realities are quite simple:

• Freight brokerage is a very useful part of moving goods along the supply chain
• Not all freight brokers are bad actors
• There are multiple ways to ensure the validity of a broker to protect yourself and your freight

Why choose Hermann Transportation for freight brokerage?

In the world of logistics, where transparency, tracking, and visibility are paramount, Hermann Services stands out as a trusted partner. Our nearly 100-year-old company has honed the art of freight brokerage, ensuring that your goods are handled with the utmost care and professionalism.

The Hermann Transportation Advantage. At Hermann Services, we recognize the importance of reliable freight brokerage in the supply chain. Whether you’re moving goods across the country or navigating the complexities of port drayage, our brokerage solutions are designed to provide peace of mind. We take the guesswork out of freight movement by offering full visibility into every step of the process.

Our stellar brokerage team is committed to tracking every load from origin to destination. This means that when you hand over your freight to Hermann Transportation, you’re not just passing it along – you’re entrusting it to a team that values transparency and accuracy. We leverage advanced technology and real-time tracking systems to ensure that you have complete visibility into where your shipment is at all times.

Transparency in Action. In an industry where trust can sometimes be in short supply, Hermann Transportation prides itself on transparency. We believe that open communication and clear information are the keys to building lasting relationships with our clients. Our brokers work closely with both shippers and carriers, ensuring that everyone involved is on the same page. This transparency helps to prevent the pitfalls often associated with double brokering and other industry risks.

The Hermann Transportation team also takes a deeper dive when booking a carrier by checking their MC number, directly checking in with the dispatcher and driver, and requiring updates from when the load is picked up to dropped at its final destination.

A Proven Track Record. Hermann Transportation has a long history of delivering exceptional results. Our deep understanding of the logistics landscape, combined with our commitment to innovation, allows us to provide top-notch brokerage services that meet the unique needs of our clients. From port drayage to nationwide freight movement, we have the experience and expertise to get your goods where they need to go – safely, efficiently, and with full visibility.

The Bottom Line. In an industry where reliability and trust are essential, Hermann Transportation offers a freight brokerage experience that is second to none. We understand the concerns that shippers may have when it comes to handing over their freight, which is why we prioritize transparency, tracking, and visibility in everything we do. When you choose Hermann Services, you’re choosing a partner who will go the extra mile to ensure that your freight arrives on time and in perfect condition.

Trust Hermann Transportation for all your freight brokerage needs, and experience the difference that a century of logistics expertise can make.