A freight broker is the main channel of interaction and connection between shippers and carriers.Freight brokers act as a go-between, ensuring a smooth handoff and on-time, safe freight delivery.
Factors to Keep in Mind While Finalizing a Freight Broker
It would be best to consider several factors before finalizing a freight broker.
Ensure That They are Licensed
Before finalizing anything, Verify the broker’s licensing. Anyone who arranges transportation for payment is required by federal law to possess a federal property broker license issued by the FMCSA.
Motor carriers who broker loads without broker authority should be avoided. Broker authority is distinct from for-hire motor carrier authority. Make sure a broker has the necessary authority and license before selecting them.
Cost Constraints
Even though you might be tempted to select the freight broker with the lowest rates, you should actually take other aspects into account before making a final choice. Undoubtedly, cost savings are important for your business needs, but you get what you pay for.
Think about the value of what is offered at that price point as well as the cost. Even if a broker is slightly more expensive than some of the newer freight brokers available, they can still aid you in saving money if they have the necessary tools, longevity, and capabilities.
Acknowledged and Certified in the Field
The leading association for third-party logistics experts, the Transportation Intermediaries Association (TIA), holds its members to a high standard of ethics. A top-notch freight broker will belong to TIA and have employees who have completed the Certified Transportation Broker (CTB) Program for certification.
There are a few additional affiliations that can demonstrate a broker’s legitimacy. Pick a freight broker that has earned recognition from organizations like the NASTC Best Broker Program and Truckstop.com’s Diamond Broker Program and is in good standing with the Better Business Bureau (BBB).
Tech-Savvy
Technology like TruckSmartz’s fleet management system is crucial when choosing a freight broker. The best technology should be available from your freight broker, and it should be able to track your shipments from start to finish as well as assist you in choosing the best modes of transportation.
Existing Team
Each freight brokerage provides a specific number of team members. Teams can range from small businesses run by a single person to huge corporations. No matter how big the team is, it’s crucial to ensure that they are established and capable of handling the capacity your company brings without the need for additional hires.
To Sum Up
The main takeaway from this is that not all freight brokers are created equal. In fact, there are some that, on the surface, seem really impressive but fall short when you look more closely at their credentials. A good freight broker will always act morally and with integrity. As a result, be sure to ask them as many questions as necessary until you are certain that they will be a good fit for your business.
Partnering with a freight broker can aid you in concentrating on your business when you have products that need to be shipped while they handle transportation. You can rest assured knowing that your products will be delivered where they are needed at a lesser price than what you could pay for them on your own.
