Freight Companies in Chicago: Which Is Best For Your Business

Freight Companies Are Great, But Brokers Are At Times More Beneficial

There are several freight companies to choose from located here in the Chicago area. A prominent list of ten includes (in no particular order):

1. All Truck Transportation
2. Vaccaro Trucking
3. SERV Transport
4. C&K Trucking
5. Chicago Suburban Express
6. HMD Trucking
7. JKC Trucking
8. LIV Transportation
9. Superior Overnight Services
10. K Express Inc.

There are actually a whole bunch more freight companies in the Chicago area, and there are various reasons why you might prefer one over the other, and the reason isn’t always price, as important as price is.

There’s a lot to take into account in choosing a cost-efficient transportation solution, and if you aren’t fully familiar with the industry and/or don’t have the time for logistics planning, even a good choice of freight company might not be the best choice.

This is why, depending on your needs, you might be better off utilizing an experienced freight broker instead of a single trucking company. To understand why, let’s take a look at what each one does.

Freight Companies Vs Brokers

Freight Companies

A freight company, also known as a carrier or trucker, is directly responsible for the physical transportation of goods. They own and operate trucks, ships, airplanes, or other modes of transport that move goods from one location to another.

Key characteristics of a freight company include:

• Ownership of Equipment: Freight companies own and maintain their fleet of vehicles, whether they are trucks, ships, or planes.
• Direct Responsibility: Freight companies are responsible for the actual delivery of goods. This includes ensuring that goods are picked up, transported, and delivered on time and in good condition.
• Services: Freight companies may offer a range of services, including less-than-truckload (LTL) and full truckload (FTL) shipping, air and ocean freight, and even warehousing.
• Liability: Since freight companies directly handle the goods, they are often liable for any damage or loss that occurs during transport.

Freight Brokers

A freight broker acts as an intermediary between shippers (companies that need to transport goods) and freight companies. Freight brokers do not own the vehicles or handle the goods directly; instead, freight brokers connect shippers with carriers and coordinate all shipping logistics.

Key characteristics of freight brokers:

• Middleman: Freight brokers facilitate the connection between a shipper that needs to move goods and a carrier that has the capacity to do so. Freight brokers negotiate rates, arrange pickups and deliveries, and ensure that both the needs of the shipper and the carrier are met.
• No Ownership of Equipment: Unlike freight companies, freight brokers do not own trucks, ships, or planes. They rely on their network of carriers to transport goods.
• Logistics Management: Brokers specialize in finding the most efficient and cost-effective shipping solutions for their clients. They manage such logistics as ordering, route planning, scheduling and loading, billing, and all associated paperwork.
• Liability: Freight brokers typically have less liability than carriers because they do not physically handle the goods. However, they are responsible for ensuring the carrier(s) they hire are vetted, reliable, and insured.

Why Your Best Option Might Be A Freight Broker

Freight companies specialize in moving goods from one location to another. Freight brokers specialize in logistics management, selecting carriers, negotiating the best rates, and managing the complexities of ensuring goods are shipped to the right destinations at the right time.

If you are doing a lot of shipping, a freight broker offers numerous advantages:

1. Access to a Larger Network of Carriers. Freight brokers have established relationships with a wide network of carriers, including small and large freight companies. This allows them to quickly find the best fit for your specific shipping needs, whether it’s a one-time shipment or ongoing logistics support. During peak seasons or when capacity is tight, freight brokers can tap into their network to find available carriers, ensuring your goods are shipped without delays.
2. Cost Savings. Because of the volume of business they do and their relationships with multiple freight companies, freight brokers can often negotiate better rates than what an individual shipper might obtain. Also, using a freight broker eliminates a shipper’s overhead costs (negotiating contracts, handling administrative tasks, managing logistics, employee time, and expense) in dealing with individual freight companies.
3. Streamlined Logistics and Quick Solutions: Managing shipping logistics is complicated and time-consuming. A freight broker specializes in logistics competencies, freeing up your time to focus on core aspects of your business. If an issue arises, such as a carrier cancellation or delay, a broker can quickly find an alternative solution from their network, minimizing disruptions.
4. Expertise and Market Knowledge. Freight brokers are logistics experts, up-to-date on market trends, regulations, and best practices. Such experience helps optimize your shipping strategy. Freight brokers specialize in various types of freight (e.g., refrigerated goods, oversized loads, intermodal) and can offer specialized insight about carriers that one might otherwise not know about if you were dealing directly with a freight company.
5. Risk Management. Freight brokers vet the carriers they work with to ensure they are reputable, insured, and fully compliant with all regulations. For complex or high-value shipments, freight brokers minimize risks by using vetted carriers with specific expertise or insurance coverage.
6. Scalability. As your business expands, your shipping needs become more complex. A freight broker can easily scale their services to match your growth, whether you need to increase shipment frequency, explore new markets, or handle more complex logistics.
7. Single Point of Contact: A freight broker provides one point of contact for all your shipping needs, even when multiple carriers are involved. Communication is not only simpler and easier, but it greatly reduces the potential for misunderstandings or errors that can lead to delayed shipments and/or unnecessary expenses.

Why Choose Freight Management Inc.

As a freight logistics service provider with over 40 years of experience in the transportation industry, Freight Management, Inc. (FMI) has the expertise, carrier relationships, benchmarking data, technical insight, personnel, and advanced technology to manage all of your transportation needs seamlessly.

FMI handles shipments for companies in the Fortune 500 all the way down to small mom-and-pop shippers. Coordinating tens of thousands of drayage moves each year for 80% of the top 25 global forwarders located both in Chicago and nationally. Our freight brokerage offers award-winning services that are very cost-effective.