Everyone is feeling the “pain at the pump” as gas prices soar to record highs and the cost of household items jumps due to inflation. One of the main reasons we’re paying more for, well, everything, is that rising gas prices are increasing the cost of shipping.
What used to cost $2.00 per mile to ship a pallet across the country now costs over $4.00–an increase of 100 percent since the pandemic began in 2020. For consumers, it feels like they’re being price-gouged at every turn, while businesses are being hit hard by the rising cost of goods and shipping costs.
But one company has a solution… and it’s a serious game changer. Pinnacle Freight Brokers, a small woman/minority-owned company based in Raleigh, NC, that both brokers and offers long haul and expedited shipping services across the U.S., has decided to actually do something to ease the financial burden on shippers and consumers.
Here’s how it normally works: Freight brokers are hired by companies that need to ship products around the country. Their job is to find the cheapest carriers and arrange shipments. Individual brokers are paid on commission, so their incentive is to maximize how much they charge shippers and minimize what they pass on to carriers. An average brokerage fee ranges from 15 to 20 percent, though the numbers can go much higher than that. This translates to higher costs passed onto the company doing the shipping.
Crystal Mwaura, CEO of Pinnacle Freight Brokers, thinks this is unacceptable and unfair. “As a national freight broker, I’ve watched as shipping companies have increased their prices to cover the cost of higher transportation, which is to be expected. What’s not fair, though, is the fact that the increased fees are largely kept by the brokers and not passed down to their drivers or customers.This, in combination with inflation, rising gas prices, and depleted aid from the government, is a recipe for failure for small and large companies alike,” Mwaura said.
Here’s how Pinnacle Freight Brokers is changing the game: Rather than charging companies rates much higher than the actual carrier cost, like other brokers do, Mwaura’s company charges a flat rate of $250 per shipment over the agreed upon carrier rate. This could mean a cost savings of up to 60 percent per shipment for its customers, who can then pass the cost-savings on to consumers.
Not only is Pinnacle Freight Brokers charging much lower shipping fees, it’s offering transparency by providing the confirmed rate the carrier has agreed upon to transport the shipment, plus its $250 flat fee, versus the standard practice of quoting the customer and trying to find the cheapest carrier in order to increase the brokers’ profits.
“Carriers are faced daily with road conditions and hazards that many people take for granted and most are away from their families weeks at a time, which Pinnacle feels deserves a fair rate,” Mwaura said. “By lowering the shipping costs of products, businesses can better afford to pass those savings down to consumers and provide a welcome boost to their own bottom line. Everybody wins.
“When the pandemic first hit, no one knew exactly what to expect and how to pivot. Having been both on the carrier and the brokerage side, I understand how important it is to transport shipments at a nominal cost. However, it’s equally important that we don’t short change the drivers–those who are actually putting their lives on the line to make sure our shelves stay stocked and we have essential items. The only ones who’ve not lost are the brokers that aren’t willing to take a minor hit on profits so everyone can have some relief,” Mwaura explained.
Pinnacle Freight Brokers is offering its new rate with no commitment for 30 days for companies to try out the services and see how much they are saving each month on shipping costs. The best part is customers will receive the same great service at a much lower cost.
For more information about Pinnacle Freight Brokers, please visit their website at www.PinnacleFreightBrokers.com or call 919-926-8598.
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