What makes Cargors DIFFERENT than others
Why cargors? We enable direct business between the shipper and the carrier by eliminating the broker, while still giving you all the benefits in a free one-stop-shop platform.
The road freight market in Europe is known for its extremely low margins. This is mainly caused by brokers that are charging very high commissions. There are two types of freight brokers, namely: traditional freight brokers and digital freight networks/platforms that act as brokers.
What is a traditional freight broker?
A freight broker is a company contracted by a single shipper or a group of shippers to act as a middleman between the shipper and the carrier. They facilitate the movement of loads from pickup point to destination by accessing their extensive network of carrier relationships.
Although a freight broker plays an important role in the movement of freight, the broker does not act as shipper or carrier. Instead, a freight broker works to determine a shipper’s needs and connects that shipper with a carrier willing to transport the goods at an acceptable price. A traditional broker often interacts with carriers and shippers by using email and phone.
What are digital freight networks and how are they acting as brokers?
In recent years, the number of digital freight networks in the road freight market has increased. The vast majority of these networks use machine learning, automation and other services to improve the shipping experience for the carrier and shipper. However, they still act as the traditional broker by being the middleman. They still set all the prices and keep the commission per shipment secret.
The goal of brokers is to charge the shipper as high as possible and find suitable carriers for as little money as possible. Moreover, they remain the middleman and do not allow direct contact between the carrier and the shipper. Below you will find some main differences.