Freight brokers provide a service that stands at the intersection of technology, logistics, and business relationships. Many people are interested in understanding more about what is involved in these transportation broker services. We will examine the services they provide and the factors you should take into consideration when picking one to work with.
What is a freight broker?
A freight broker provides two services at once. For the customer who wishes to transport items around the country or across the world, the broker will find the best option in terms of price, speed, and efficiency. For the trucking and other transport companies who move the shipments from place to place, the broker will match them with the right customer and make sure that they have a regular stream of business. The broker will handle the logistics involved in scheduling shipments as well as billing the customer and paying the carrier.
How do I pick a broker?
There are a few factors you should consider when picking a broker to work with.
1. They should be licensed and bonded. By law, a broker must have a license from the Federal Motor Carrier Safety Administration, as well as a $75,000 surety bond.
2. To ensure sufficient shipping capacity, make sure that the broker has a sufficient number of carriers to deal with the level of shipments you require in a consistent manner.
3. How long have they been in business? You should look to established firms to provide transportation broker services, as they have had the time to build up the necessary connections and relationships.
Now that you understand the ins and outs of how transportation broker services operate, you should be better equipped to pick the best one for your particular business requirements.
