Shipping systems have changed over the past decade. Today, shippers are relying increasingly on other intermediary groups to move their freight along. They are turning to diverse individuals or groups to arrange both transportation and distribution of their loads. Among the more common ones who willingly take on this responsibility are truck freight brokers.
What Is a Truck Freight Broker?
Freight brokers are certain groups or individuals who perform two searches. They look for
1. Shippers who need to move their cargo
2. Trucks willing to transport the load
The broker then puts the two in contact with each other. This makes him or her an intermediary. For this, the broker collects a commission.
How to Choose Truck Freight Brokers
As is the case in all occupations, it is important to deal with the right broker. A shipper needs to work with a quality performer – one who can be a beneficial member of their transportation system. If a shipper wants to ensure they have the right freight broker, he or she needs to see whether he or she has the right qualifications. Research is necessary. It should include the following questions:
1. Does the freight broker have the proper licenses? This is required under federal law. Make sure the broker has the right type of license
2. Does the broker provide multiple modes of transportation? This is less restrictive than those who have only one means of transporting cargo .e.g. LTL, flatbeds
3. How does the broker select carrier? Do the truck freight brokers under consideration have a rigorous, standard vetting process?
4. How long has the freight broker been in operation?
5. How good is their credit rating?
6. Does the broker carry insurance? Is it sufficient?
7. What organizations, associations, and programs does the broker belong to?
By getting answers to these questions, a shipper can narrow down a list of potential truck freight brokers to the right one.
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