Freight Forwarding Process Explained

“Going direct to the carrier saves money!” That’s the myth. Here’s the reality: Going direct sounds smart, until it creates more problems than it solves. Especially for small to mid-sized shippers who don’t have: • Routing guides • A dedicated logistics person or team • Consistent volumes and lanes • Experience with carrier vetting At some point, every SMB owner thinks: “Why have a broker? I don't want to pay a middleman for doing what I can do. I'll find the carriers myself. ” Until they try to move freight without one… and reality hits: – That local carrier who said, “We can run anything”? Suddenly not so helpful when your new customer is 700 miles away. – A driver no-shows, and now you’re calling random numbers on Google for hours trying to find someone. – No tracking updates. No one answering the phone. Meanwhile, your customer’s emailing, yet again, asking where their order is. Now either you or one of your employees gets pulled from their actual job to manage relationships, chase trucks, and solve problems. And trust me, it’s not a part-time job, it's a full-time thing. So everything else? Pushed to the side, customer service and growth included. And you might be thinking, “But I’ve seen Jim Bob down the street go direct, and it worked out for him!” Sure, it can work.. But only if your freight lines up almost perfectly for a carrier, the lane, the rate, the volume, etc. There’s a reason enterprise shippers - with full logistics departments, consistent freight volumes/lanes, and millions in freight spend STILL use brokers. Even with all the talk about “eliminating broker capacity,” it doesn’t happen. Because it’s just not realistic. Any inconsistency in your freight? You’re better off with a broker. Not just any broker - the right broker. (And no, not 20 brokers. Just 1 good one.) The right one will take that chaos off your plate - without adding onto your overhead costs. The truth is, finding freight coverage takes way more oversight than most SMB shippers are built for, especially if they're growing. Saving a few hundred here and there isn’t worth the real cost. Your time (and your sanity.) 💚

Most logistics consultants skip this step when optimizing small parcel services. It's the reason your ops are stuck at 80% efficiency.👇 Here's the truth: data is king in logistics optimization. But not just any data. The right data. The step most consultants miss? Comprehensive carrier performance analysis. They focus on rates, but ignore: - Actual transit times vs. promised - Damage rates by route and carrier - Exception handling efficiency - Claims resolution speed Without this intel, you're flying blind. Your optimization efforts hit a ceiling. You can't improve what you don't measure. How to fix it: 1. Implement detailed tracking for every shipment 2. Analyze patterns over 3-6 months 3. Identify weak points in your carrier mix 4. Negotiate based on real performance, not just rates 5. Continuously monitor and adjust Result? Happier customers, lower costs, smoother operations. The difference between good and great logistics is hidden in the details most overlook. Master these details, and watch your logistics transform. Optimize smarter, not harder. #LogisticsOptimization #DataDriven #CarrierPerformance #EfficiencyBoost #SupplyChainManagement #ParcelDelivery #OperationalExcellence #PerformanceAnalysis #ShipmentTracking #ContinuousImprovement

🚛 📊 Carrier scorecards are the cornerstone of measuring and improving transportation performance. They provide shippers and brokers with the data they need to make informed decisions about carrier partnerships and ensure reliable service. A Carrier Scorecard evaluates a carrier's performance based on key metrics such as On-Time Delivery (OTD), On-Time Invoicing (OTI), responsiveness, and claims ratios. This data helps freight brokers and shippers assess how well their carriers are meeting expectations, identify areas for improvement, and make decisions on which carriers to work with. How scorecards help brokers: 1. Build Trust: Clear, measurable data fosters transparency, helping brokers, shippers, and carriers build trust and strengthen their relationships. Sharing performance data allows carriers to see where they’re excelling and where they need to improve, which drives better performance on both sides. 2. Optimize Cost vs. Service: Brokerages often have to balance cost constraints with service expectations. Carrier scorecards help brokers evaluate whether it’s worth spending a little extra to work with a high-performing carrier who consistently meets deadlines or if they need to address poor performance to avoid delays. 3. Increase ROI: By identifying top-performing carriers, brokers can direct more loads their way, maximizing efficiency and reducing disruptions. When brokers have accurate performance data, they can make smarter decisions about who to partner with—ultimately leading to better service and greater profitability. 4. Gain Visibility: The deeper insights provided by carrier scorecards allow brokers to understand their supply chain’s weak spots. They can identify where delays or inefficiencies are occurring—whether it's on-time delivery issues, poor communication, or tender rejections—and take action to correct them. Current Challenges with Carrier Scorecards While carrier scorecards can unlock tremendous value, they are not without their challenges. The process is often manual, time-consuming, and prone to inconsistency. Here are some common pitfalls: 1. Data Silos: Freight brokers often work with multiple systems and spreadsheets to gather carrier data, leading to incomplete or inconsistent information. This fragmented data can make it difficult to accurately assess carrier performance. 2. Inconsistent Criteria: Scorecard criteria can vary from carrier to carrier, and shipper to shipper, which makes it hard to maintain a standardized process across the board. This can also make it challenging for brokers to compare performance consistently. 3. Limited Automation: Many brokers still rely on manual processes to track and calculate scorecard metrics, which can lead to delays in data reporting and slower decision-making. What changes do you want to see in scorecards?👇

Importers: Are You Unknowingly Violating CBP Regulations? Many importers aren’t aware that a Power of Attorney (POA) for customs clearance must be executed directly with the licensed customs broker — not through a freight forwarder (unless they are a broker) or any third party. This is a strict requirement under 19 CFR § 111.36(c)(3). IF YOU ARE BUYING LDP, DO NOT PROVIDE A POWER OF ATTORNEY TO THE SELLER'S THIRD PARTY OR HAVE SHIPMENTS CLEARED IN YOUR NAME SINCE YOU WILL BE RESPONSIBLE FOR ALL DECLARATIONS TO CBP AS IMPORTER OF RECORD. Let’s break this down: 📌 What the Regulation Says: Customs brokers are prohibited from accepting a POA that was obtained by a third party, such as a non-customs broker licensed freight forwarder. The customs broker must have a direct POA with the importer of record. 📌 Why This Matters: If a freight forwarder (that is not a licensed broker) — let’s say “Rain Forest Forwarder” — presents you with a POA for their in-house broker, such as “SOSO Brokers,” and you sign it, you are not in compliance with CBP regulations. The POA must be directly between you and the broker. Often, importers assume the forwarder is the customs broker, leading to confusion and lack of reasonable care in CBP’s eyes. If CBP pulls your entry and asks who your broker is — and you reply “Rain Forest” — but SOSO Brokers filed the entry, that could demonstrate a compliance failure on your part. ⚠️ The Risk to You: Violating 19 CFR § 111.36(c)(3) Failure to exercise “reasonable care” as required under 19 U.S.C. § 1484 Potential audits, penalties, or delays in cargo clearance Being misled into authorizing a broker relationship you never intended 💡 Best Practice: Always execute a POA directly with your licensed customs broker. Ask them to confirm their license and maintain open communication. No third party should interfere with or act as a conduit for that relationship. At the end of the day, compliance is your responsibility as the importer. Make sure you’re protected — and adequately aligned with CBP regulations. #LDP #importer #Duty #customs #CBP #powerofattorney #customscompliance #importcompliance #reasonablecare.

With the current volatility in logistics, from fluctuating demand to tight capacity, having strong relationships with carriers can significantly impact your bottom line. When carriers have to choose between multiple loads, they’re going to prioritize those from shippers who make their lives easier. This isn’t just about paying top dollar; it’s about being efficient, predictable, and understanding the carrier's needs. Providing flexible pickup and delivery windows, accurate load information, and minimizing detention are some of the critical ways you can stand out. These practices don’t just improve your reputation—they streamline your operations, cut costs, and enhance efficiency. A shipper who consistently respects that time is invaluable. If you’re a shipper of choice, carriers know they’re less likely to run into delays, waste time on the dock, or deal with miscommunication. This trust turns into loyalty. The key to becoming a shipper of choice starts with communication. Clear, upfront information about shipments, loads, and expectations reduces confusion and allows carriers to plan efficiently. Carriers appreciate transparency, and in return, you get a reliable partner who’s more willing to work with you, even in difficult circumstances. It’s not just about relationships; it’s also about operations. Leveraging technology to optimize your supply chain can make you more attractive to carriers. Automated updates, seamless payment systems, and real-time tracking are features that carriers appreciate, and they demonstrate that you value efficiency just as much as they do. With these measures in place, you’ll find that more carriers are willing to work with you—and even prioritize your business over others. In times of capacity shortages, this can be the difference between getting your freight moved or facing costly delays. Moreover, building a reputation as a shipper of choice creates long-term benefits. Over time, it becomes easier to negotiate favorable rates, secure capacity, and establish a consistent network of reliable carriers. #Trucking #OwnerOperator #SupplyChain

Smart Shipping: Mastering Consolidation, FCL & LCL for Cost-Effective Logistics In the fast-paced world of global trade, choosing the right container strategy can make all the difference in cost, speed, and efficiency. Freight forwarders and businesses must decide between Full Container Load (FCL), Less than Container Load (LCL), or Consolidation—but which one is best? 🚢 1️⃣ Full Container Load (FCL) – The Fast & Secure Option FCL means one shipper uses the entire container, whether it’s full or not. Ideal for: ✔ Large shipments – Maximizes efficiency for bulk cargo. ✔ Faster transit – No waiting for consolidation. ✔ Better security – Less handling, reducing damage risk. ⚠ Consideration: Higher cost if the container isn’t fully loaded. 📦 2️⃣ Less than Container Load (LCL) – The Flexible & Cost-Effective Choice LCL shipments share a container with cargo from multiple shippers. Perfect for: ✔ Small & medium shipments – Pay only for used space. ✔ Budget-conscious shipping – Lower costs than FCL. ✔ Inventory flexibility – No need to wait for full container loads. ⚠ Consideration: Longer transit times due to consolidation and deconsolidation. 🔗 3️⃣ Consolidation – The Best of Both Worlds Consolidation (groupage shipping) allows multiple small shipments to be combined into one container, reducing costs while improving efficiency. ✔ Optimized space usage – No wasted container capacity. ✔ Lower costs per unit – Shared shipping expenses. ✔ Ideal for SMEs – Enables small businesses to access global markets affordably. Consideration: Requires careful planning to match cargo schedules. Which Shipping Strategy is Right for You? The choice depends on shipment size, urgency, budget, and handling risks. Smart freight forwarders optimize these strategies to reduce costs and streamline supply chains. Question: How do you balance cost and speed in your shipping strategy? Let’s discuss! #Logistics #FreightForwarding #FCL #LCL #Consolidation #SupplyChain

That sinking feeling when a customer asks, 'Where’s my package?' I cracked the code. Here’s my exact blueprint: 1. Optimize Your Carrier Selection Use carriers with the fastest transit times to your destination zones. Partner with regional carriers for local deliveries. 2. Choose the Right Service Level Use expedited or express services for time-sensitive shipments. Leverage next-day or two-day delivery options strategically. 3. Ship From Multiple Warehouses Distribute inventory across multiple locations closer to your customers. This reduces the distance your packages need to travel. 4. Implement Efficient Labeling and Packing Pre-label packages to streamline the handoff to carriers. Use automated sorting systems to speed up order fulfillment. 5. Leverage Technology Use shipping software to compare carrier options in real time. Implement tracking systems to monitor and optimize transit routes. 6. Optimize Pickup and Handoff Schedule pickups at the earliest possible time each day. Drop shipments directly at carrier hubs if possible. 7. Ensure Accurate Addresses Use address validation tools to minimize delays from incorrect addresses. Verify customer inputs during checkout. 8. Monitor Shipping Performance Analyze transit times and carrier performance regularly. Switch carriers or service levels if delays become a pattern. 9. Communicate Proactively Provide customers with realistic delivery estimates. Offer tracking information to reduce inquiry response times. Would you like tailored tips for specific shipping needs?

CEO: “Twenty-thousand layoffs and dozens of UPS hubs closing—are we about to miss delivery targets and blow the budget?” COO: “Only if we stand still. A leaner network means we need a leaner playbook.” CEO: “So you want me to juggle more than one carrier while rates creep up?” COO: “Two carriers is polite. A third is insurance. The invoice stays neat when the network stays flexible.” Here’s the action plan we’re sharing with high-volume teams this week: • Map your lanes. Flag any ZIP that used to feed into a closing facility and add a one-day buffer until new routes settle. • Split 10 % of volume to a secondary carrier now—measure speed, cost, and claims for thirty days. If the numbers win, scale up. • Track scans in real time. A single late scan is your warning light; reroute before customers feel it. • Audit invoices every Friday. “Network efficiency” fees love fine print—catch pennies before they grow. • Right-size packaging. Lighter, tighter boxes dodge DIM hits and hop across backup networks with fewer hiccups. The headline: carrier consolidation is a fact, not a forecast. Shippers who treat their carrier mix like a portfolio will glide through the shake-up. Those who cling to one label will fund the learning curve. How are you prepping your playbook before the next hub goes dark? #ParcelStrategy #Logistics #UPS #FedEx #MultiCarrier #SupplyChain #ShippingData

Many of the OTD reports from carriers you get are bologna. Most brands take them at face value and suffer later. Here are a list of questions to help you get a better picture. 1 - How do you define an "on-time" delivery? Is it based on delivery by end of day, within a time window, or within a promised transit time? 2 - Are weekends or holidays included or excluded in your OTD calculation? 3 - What percentage of shipments were marked as “exceptions” (e.g., weather delays, incorrect addresses)? 4 - Are exceptions excluded from the OTD calculation, and can you provide the raw data for those shipments? 5 - How do you determine when to classify a shipment as an exception, and are these consistently applied? 6 - Can you provide OTD performance data broken down by first-mile, linehaul, and last-mile segments? 7 - How many scan events are typically recorded per package? 8 - Can you provide OTD performance data broken down by zones? 9 - How do you report lost or undeliverable shipments in your OTD metrics? 10 - Are lost packages included in the final OTD calculation, and can you provide the loss rate? 11 - How does your OTD performance differ for larger or heavier packages? 12 - How does your performance vary when partnering with regional carriers or for multi-carrier handoffs? 13 - Can you provide a breakdown of the most common causes for claims on late deliveries? 14 - How do customer complaints or NPS/CSAT scores align with your OTD performance data? 15 - How often is your OTD data updated and reported to clients? These are just a few to get the creative juices flowing. If you care about pricing only Then perhaps these questions wont matter. The narrative will eventually go back to delivery performance. Use these to help build a better relationship muscle with your carriers. #ecommerce #logistics

Saturday Morning Soapbox from FreightValidate ✅ > ❌ Brokers Can’t Pretend to Be Carriers — And Vice Versa (Even if you have both authorities) There are federal regulations under MAP-21 and 49 CFR that too many in this industry either don’t know — or choose to ignore. If you hold both broker and carrier authority, the law is clear: ✅ You must designate on every document — rate confirmations, BOLs, load tenders, invoices — under which authority the load is moving. ✅ You cannot advertise or represent yourself as a carrier if you’re brokering the load. ✅ You cannot advertise as a broker if you’re the carrier on that move. 📜 The law says it plainly: ✅ 49 U.S. Code § 13902(b)(6) – You may not broker unless registered to do so and may not present yourself as a motor carrier unless authorized. ✅ 49 CFR § 371.7(b) – Brokers cannot advertise as carriers. ✅ MAP-21, Sec. 32915 – Role must be clearly stated in every transaction. Why does this matter? Because some brokers intentionally misrepresent themselves as carriers — especially when the shipper only works with asset-based carriers — just to win the freight. But that deception brings major legal, financial, and insurance risk. ❌ Brokers do not carry auto or cargo liability insurance — carriers do. 49 CFR § 387.7 and § 387.9 apply to carriers, not brokers. If the broker falsely acts as the carrier and something goes wrong, the shipment may not be covered by insurance. Shippers and carriers are left exposed. Payment is also at risk. 49 CFR § 371.3(a) states a broker acts as a fiduciary — a financial intermediary between shipper and carrier. But if that broker pretends to be the carrier, they void that role — and any payment disputes become legal chaos. Penalties include: • Up to $10,000 per violation • Revocation of authority • Insurance claim denial • Legal exposure under the Carmack Amendment • #NotValidated Status - ❌- on #FreightValidate.com and #WhatsYourMCNumber.com platforms Bottom line: If you’re a carrier, be a carrier. If you’re a broker, be a broker. If you’re both, make it crystal clear which hat you’re wearing for that specific transaction— every single time. At FreightValidate ✅ > ❌ we verify not just identity — but compliance, insurance, and role integrity. Because if someone plays both sides and hides it… It’s not logistics. It’s fraud. FreightValidate ✅ > ❌ FreightClub.us Freight Fraud Task Force Inc Angela Froning #FreightFraud #MAP21 #FMCSA #FreightValidate #FreightFraudTaskForce #BrokerCompliance #KnowYourRole #DoubleBroking