ATS Transportation Blog

When carriers get paid quickly, everybody wins

When given the choice, carriers prefer to be paid faster by their brokerage. No surprise there, right? But it’s about more than simply putting money in their pocket. Remember, it costs money to move freight. Those carriers are taking a risk by fronting their own money hoping their broker can make the payment.

Across the freight brokerage industry, carriers typically get paid 25-30 days from the invoice date. That’s nearly a month of costs they have to cover before receiving payment for their services.

A different practice by some brokerages is offering payments in three to five days, however they charge carriers three to five percent of the load payout to compensate them that quickly. A major differentiator for brokerages is being able to offer the quick payment services free of charge.

All this sounds great, but what does it mean for you as a shipper? Simply put, all carriers want to get paid quicker — including the best carriers. That, combined with brokerages having the ability to vet their carrier network, means logistics providers that pay quickly get to work with the best carriers in the country — which means the best carriers will be hauling your freight.

When the time comes to move your next load, start asking how quickly your broker pays its carriers. It could be the difference between having a quality carrier moving your freight or not.

Mike Stangl

Written by Mike Stangl

As a sales director with ATS Logistics since 2018, Mike helps develop business plans and strategies to continue growth within the company. He has been in the transportation industry since 2007, beginning as a sales representative and earning his way to his current role.

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