How Brokers Can Improve Relationships with Carriers
Broker-carrier relationships have been a hot topic in the freight industry lately. Unfortunately, the conversation hasn’t always been about smooth sailing and seamless collaboration.
Brokers are expressing frustration over the Federal Motor Carrier Safety Administration’s proposed transparency requirements, while carriers are raising concerns about what they perceive as overly complex vetting procedures imposed by brokers.
Both sides have valid points. However, instead of dwelling on the challenges, we’re taking a forward-looking approach. This blog explores actionable strategies brokers can use to foster stronger, more productive partnerships with their carriers. By focusing on collaboration and mutual benefits, brokers can navigate today’s challenges while building trust and improving efficiency.
1. Prioritize transparent communication
Many carriers value clarity and honesty, especially in today’s fast-paced, tech-driven industry. Brokers can build trust by sharing essential information upfront, such as load details, rates, and payment terms. Providing visibility into decision-making processes — especially when it comes to rate negotiations — can also reduce misunderstandings.
One way to enhance transparency is by using technology platforms that allow both brokers and carriers to track shipments, access documentation, and communicate seamlessly. When brokers show they’re willing to collaborate openly, carriers are more likely to view them as reliable partners rather than adversaries.
2. Simplify the vetting process, but be thorough
While brokers must ensure that their carriers meet safety and compliance standards, overly complicated onboarding or vetting processes can deter reliable and honest carriers from working with them. Streamlining these procedures by using automated systems for insurance verification, safety checks, and document submission can speed things up. However, brokers can also benefit by using multiple vetting tools for thoroughness, especially as some platforms have been criticized for allowing potentially unsubstantiated reports.
Additionally, offering carriers clear guidelines and support during onboarding demonstrates that the broker values their time and effort. Investing in efficient tools not only benefits carriers but also makes it easier for brokers to expand their network.
3. Offer consistent and fair rates
A potential source of friction in broker-carrier relationships is disagreements over rates. Carriers often feel squeezed when brokers prioritize cost-cutting. Brokers can improve relationships by offering consistent, fair rates that reflect market conditions and the value of the carrier’s services.
When possible, brokers should avoid last-minute rate changes or excessive deductions from payments, as these practices erode trust. Building a reputation for fairness can help brokers secure a dependable carrier network, even during capacity shortages.
4. Streamline payment processes
One of the fastest ways to improve relationships with carriers is to ensure they’re paid promptly. Cash flow is a lifeline for carriers, especially smaller trucking companies. Brokers can set themselves apart by offering quick-pay options or using back-office tech platforms that provide carriers with faster access to funds.
Clear invoicing and payment terms, as well as the ability for carriers to track payment status, are also essential. A broker who prioritizes smooth payment processes shows that they respect the carrier’s business needs, fostering goodwill and loyalty.
5. Recognize and address carrier pain points
Brokers who actively seek out and listen to carrier feedback and adapt accordingly demonstrate a commitment to mutually beneficial relationships. Common carrier concerns — such as detention time, backhauls, or unrealistic expectations on delivery windows — should be addressed proactively.
For instance, providing compensation for detention or offering load-matching assistance to reduce empty miles can make carriers feel supported. Brokers who position themselves as problem solvers stand out in a competitive market. Additionally, brokers can ask questions about a carrier’s preferred routes and the types of loads it can haul.
6. Invest in long-term relationships
Transactional relationships can cause mistrust between brokers and carriers. Instead of focusing solely on short-term gains, brokers can adopt a partnership mindset. Regularly working with a core group of trusted carriers builds rapport, improves operational consistency, and ensures quality service.
Long-term partnerships also allow brokers to better understand carrier capabilities, preferences, and constraints, enabling them to tailor opportunities that align with the carrier’s strengths. This fosters a sense of loyalty and mutual respect, paving the way for collaborative growth.
7. Showcase your value
As of fall 2024, there were approximately 26,000 freight brokerages registered with the FMCSA, which means carriers have abundant options to haul loads with. But only you and your team know the exact value proposition you can offer. Determine how your brokerage is different and don’t be afraid to let carriers know about it.
Building better partnerships for tomorrow’s routes
Improving broker-carrier relationships isn’t always easy but can pay huge dividends down the road. It requires intentional effort, transparency, and a focus on mutual success. By cultivating open communication, streamlining processes, and investing in long-term partnerships, brokers can build trust and stand out in a competitive industry. These steps not only address today’s challenges but also pave the way for more collaborative, efficient, and tech-forward freight operations. Stronger relationships benefit everyone — brokers, carriers, and shippers alike.