Freight brokers are the agents who help in transporting different products for commercial gain. These products can be transported by ship, aircraft, train, van or trucks. As the logistic and transportation industry is growing, it becomes difficult for a product and service provider to keep track of the new facilities available and priced charged for them. A freight broker has complete access to records of freight carriers and help in getting the finest price with the carrier service company depending on load to be transported.
These days there are many freight companies offering with freight brokerage services & value added services like transportation, distribution and logistics. Here are some tips on choosing the right freight broker:
* Opt for a licensed broker only. They follow the TIA guidelines strictly.
* Check for their logistic management services. A good broker has multiple transportation options & at time of shortages in one mode can provide you with the best alternative mode.
* While selecting the broker, it becomes necessary to verify the credentials the transport the freight broker has chosen. Crosscheck operating authority’s credentials and see whether they are offering with insurance coverage and how safely your products will be transported to the final destination.
* Many big carrier companies have fleet of vehicles for carrying the goods. They don’t work with every freight broker & have only few selective ones only. So they don’t post the capacity available with them. Hence carefully check their selection procedure for bro king trucks.
* Carefully assess the complete carrier management process. Look for a freight broker who can communicate with the carrier companies and provide with written instructions. Ask them in detail how they match carrier services with available load. Do they promise to provide with pick yup and delivery of the consignment at the final destination or not? You can even ask then to forward you the copies of the correspondence with carrier.
* Hire a financially solvent company that can pay the carriers. If you see the one not prompt in making the payment to logistic service provider or has any legal judgment against them, say them good bye to them immediately.
* Check the history and credentials of the company. See the percentage of the projects handled by them successfully.
* These days many brokers are providing with the insurance company. See whether they are offering you with that option or not? It is wiser to go for brokers who have carry the liability insurance and “errors and omissions” insurance too.
Finally upon total satisfaction get a written contract made with the brokers. It should clearly explain all the verbal terms and conditions made to avoid misunderstanding. Clearly read that the contract addresses the roles and responsibility of the freight broker