Choosing Your Freight Broker
The job of a freight broker is focused in logistics. It is the responsibility of the broker to liaise among distributors, wholesalers and the manufacturers to ensure that there is going to be a punctual and safe transportation of goods to its destination point of resale. The profit on transaction is otherwise called as freight brokerage.
As a profession, this has its origin at early phase of last century. Licensed brokers can be an individual or a company and the companies that are contracting them might depend wholly on them for transportation needs. Having said that, they are able to get away for having their own department. There are also about 4,000 licensed freight brokers that you can find in the US although just about half of work is actually full-time. The formal qualifications aren’t necessarily legal although there are institutions that are providing training in specialty as well as issuance of diploma. As for the licenses, these are being issued by the FMCSA or the Federal Motor Carrier Safety Administration. They should also prove that they have the adequate coverage in covering the losses of clients otherwise, they would not be able to operate.
When you are in the process of selecting a freight broker, make sure that you pick one carefully. It is because for-hire motor carrier authorities are not the same thing. It is a must to have multiple modes of transportation. There needs to be available alternatives in case that something goes wrong throughout the operation. How do the broker picks its carriers? Well basically, their criteria for selection doesn’t matter as not all carriers are equally reliable and trustworthy. The communication however should always be open in the industry. Therefore, you have to ask brokers how they are matching loads to the carriers, how they are confirming correct pick-ups and view selections of correspondence.
The information on freight companies are available on various web directories that you can easily find online. These resources are extremely useful in finding lists of some of the most reliable freight companies. There are actually twelve categories for this one and this includes Special Freight Services, Rail Freight Services, Furniture Shipping, Truck Load Freight, Freight Services, Shipping Companies, Freight Companies, Trucking Companies, Motor Freight and Common Carriers. All of the listed freight carriers have agreed to some sort of discount with American Freight Companies.
Membership of the industry trade group TIA or Transportation Intermediaries Association voluntarily follows strict ethics code so you can safely safe that you are in good hands in any of these companies. For all the transactions taking place between you and the freight broker, see to it that there is a written contract binding. By doing so, it can help you to steer clear of any problems on establishing responsibilities. Check as well if they are offering ancillary services and if yes, what are the coverage. Inquire as well about the processes. Remember that the more communicative and open they are in the procedure, the better the chance that they are a reliable firm.