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    How to Choose the Right FTL Broker for Your Business

     

    Moving freight via full truckload can be a challenging task, to say the least. This is true even for the most experienced shippers.

    With the rapid increase in FTL shipping rates, and a steady flow of new technology to integrate, an experienced FTL broker in your corner significantly reduces the stress. And that's not to mention how they improve your operational efficiency.

    However, with so many FTL brokers out there, how do you find and hire the right one?

    For those shippers who realize the value of an experienced FTL broker or 3PL, we're here to help. In this blog post, we'll share three easy tips for hiring the right freight broker.

    What is a Freight or FTL Broker?

    An FTL broker is also commonly referred to as a freight broker.

    FTL brokers are tasked with helping shippers handle some or all aspects of their shipping needs. These tasks include finding the best rates and booking FTL shipments on behalf of the clients they serve.

    Pretty straightforward, right? Well, for the most part, it is...

    But there is still one subject that some shippers often get confused about. The confusion sets in when they try to wrap their head around the differences between an FTL broker and a 3PL.

    And that's actually a rather common point of confusion!

    The primary differences between these two include:

    Freight Broker:

    • Sets up shipping for clients
    • Acts as a middleman
    • Generally limited in resources
    • Relies on a strong network of carriers

    3PL:

    However, what is not commonly known is that leading providers like Redwood Logistics offer both FTL brokerage services and traditional 3PL services through a Modern 4PL approach. An experienced provider that offers FTL Broker services maintains strong relationships with multiple shippers, carriers, and other supply chain partners. This gives them experience and an edge in multiple freight handling industries.

    With that being said, if you're looking for the right FTL broker, here are three pro-tips we suggest you follow!

    Make Sure they Serve Your Industry

    A good freight broker is one that offers services for your specific industry. And contrary to popular belief, not all freight brokers serve all industries. Some focus on manufacturing, while others specialize in retail or eCommerce companies.

    However, it's also important to work with a freight broker who has experience with other industries. There are times when your company will need to utilize logistics services that are not common. Services requiring the same level of dedication and specialization include:

    • LTL
    • Parcel
    • Multimodal
    • Intermodal

    By establishing a solid relationship with a diverse FTL broker, you'll be set up to expand your service offerings as needed.

    Diversity Matters

    A freight broker that has experience working with FTL carriers, freight forwarding, and various shipping modes has the diverse experience you need to operate a lean supply chain. Diversity of services matter more than ever in this day and age, and your customers have plenty of options.

    And that's not to mention that the modes of transportation needed for certain deliveries are growing every day. Suffice it to say, there are many areas in which your broker must be able to perform adequately to get larger jobs completed efficiently.

    Furthermore, by working with a diverse freight broker, you can stay on top of shipping trends that impact your business. This includes hidden costs such as:

    These costs are far too often passed along to the customer in the form of higher priced goods and constantly rising shipping charges. A seasoned freight broker helps you to lower these costs, which in turn, keeps your customers happy and coming back to you time and again.

    Brokers with a diverse resume can help you fine-tune your current operations and build value and resiliency into your supply chain.

    Always Ask for References

    While an FTL broker is an outsourced agent who simply sets up shipments for you, remember that they still represent your company!

    Don't be shy about asking them to provide you with references from some of their past clients. Checking their references gives you insight into:

    • Their work ethic
    • Communication skills
    • Overall trustworthiness

    As a matter of fact, right from the beginning, it shows they want to earn your trust. If you ask them for references and they open up the books for you to review, that is a sign that they are proud of the previous work they've completed with past clients. Secondly, it gives you one of the most coveted things in any industry, it gives you peace of mind.

    And that is something that you can't get just anywhere!

    Final Thoughts

    Still not sure whether you need an FTL broker, a 3PL, or a mixture of both?

    No worries, we completely understand the frustration. That is why we are dedicated to helping clients get their operations up and running. Redwood Logistics has the years, the experience, and the reputation to get the job done properly and efficiently. See how we've helped clients like you in our case studies.

    Reach out to us today and let us put our knowledge to work for you!

    FAQs

    What does an FTL broker do?

    An FTL broker helps shippers arrange full truckload shipments by finding competitive rates, booking freight, and coordinating with carriers. In practice, the broker acts as a middleman who relies on a strong carrier network to move loads efficiently. This can reduce the burden on your team and help you manage freight more consistently.

    What's the difference between an FTL broker and a 3PL?

    An FTL broker primarily sets up shipments and connects shippers with carriers, while a 3PL handles a broader set of logistics functions. A 3PL may also manage warehousing, storage, inventory, shipping and receiving, and freight invoicing and auditing. That makes the two roles related, but not interchangeable.

    How do I choose the right FTL broker for my industry?

    Choose an FTL broker with experience in your specific industry and ask whether they have worked with similar shippers before. A broker serving manufacturing, retail, or eCommerce, for example, is more likely to understand your freight patterns and service requirements. Requesting references from similar clients is one of the clearest ways to verify fit.

    Why does experience with different shipping modes matter in a freight broker?

    Diversity matters because a broker with experience across FTL, LTL, parcel, multimodal, and intermodal shipping can adapt as your needs change. That broader background can also help identify overlooked invoice items, such as surcharges and accessorial fees, and support a leaner, more resilient supply chain.

    What should I ask an FTL broker before hiring them?

    Ask about their industry experience, the types of freight they handle, and whether they can provide references from past clients. References help you evaluate work ethic, communication, and trustworthiness. A broker who is comfortable sharing references is usually showing that they stand behind their service and relationships.

    Can one provider offer both FTL brokerage and 3PL services?

    Yes, some providers offer both FTL brokerage and traditional 3PL services through a Modern 4PL model. That approach combines brokerage capabilities with broader logistics support, giving shippers access to multiple transportation and supply chain functions through one relationship. The article highlights Redwood Logistics as an example of this model.