How do I find out how many of a freight brokerage’s shippers use it for every load?

A freight brokerage can look busy because many shippers each send an occasional load. What you want to know is how many of them send nearly everything. Start with a report of loads by shipper, by lane and by month for several years. Look for steady volumes in the same lanes and for shippers that grow, as opposed to those that appear only when rates are cheap.

Ask about the way work is awarded. Some shippers award lanes by contract or routing guide, others tender each load by email and take the lowest bid. Ask what happens to volume when a rate moves. Learn who sits on the shipper side, how quotes are given and whether the brokerage is the primary or the backup supplier. A shipper’s own staff can often tell you roughly how much freight it moves, so you can compare. Ask the seller to explain any large gap between the two.

Finally, speak with a few shippers once the seller agrees. Ask what they use the brokerage for and what would make them switch. Check whether relationships belong to the owner or to staff. Also ask whether any shipper’s freight is tied to a parent company’s decision. Ask your lawyer to review customer contracts for wording on change of ownership.

Key takeaways

• Get load data by shipper, lane and month for several years.
• Learn whether shippers award work by contract or load by load.
• Confirm with a few shippers, and find out who owns each relationship.