How carriers find freight brokers

Some shippers try to solve the problems of transporting their goods on their own to save money. As a result, they cannot fully engage in their business and spend a lot of money, effort and time on unfamiliar work.

Instead, it is better to turn to the help of freight brokers. These are individuals or companies engaged in the delivery of goods. This is their profession, and they know this job. Maybe it is a paradox, the transportation of goods with the help of brokers is cheaper for business. In addition, the entrepreneur does not have to be distracted from the main work.

Freight brokers cooperate with many companies and optimize transportation prices. This is beneficial for both brokers and shippers.

The brokerage market in the United States is extensive. As in all sectors of the economy, it also has pros and cons. Not all transportation intermediaries are able to solve complex problems.

There is also the human factor. There are unscrupulous specialists who try to snatch more than they should. In order not to run into such brokers, shippers need to do serious work to find responsible professionals. In this case, they will be helped by expert advice.

Availability of a license

Freight brokers and companies are not allowed to operate in the U.S. without a license from the Federal Motor Carrier Safety Administration (FMCSA). All information about the activities of brokers can be found on the official management portal.

Financial well-being

Many entrepreneurs are sure that only large companies should be trusted. In fact, this is not the most important indicator. The stories of brokerage companies show that there have been many examples when large firms went bankrupt. On the contrary, some small companies show reliable financial stability and are responsible for the consequences of damage to goods on the road.

With the financial unreliability of the cargo broker, a situation may arise in which the shipper will have to pay the carrier not only the full cost of the damaged goods, but also the costs of litigation.

Work experience

This factor is of great importance when choosing a cargo broker. If the intermediary reliably performs his duties for a long time, this is a sign of stability. Particular attention should be paid to how brokerage companies managed to solve the problems of transporting goods in financially troubled years. If an intermediary has managed to overcome the difficulties of such period in the industry, he can be trusted.

Operating systems

When hiring intermediaries to deliver goods, ask what management system (TMS) they use. There are brokers in the industry that work with Access or Excell yet. With this approach to work, it is not necessary to talk about the optimal transportation of goods. Advanced freight brokers now even manage to sell their new developments to other companies.

Email or website

Imagine that there are still such companies that have neither a website nor an email address. This state of affairs is alarming. If we talk about the financial side of this issue, then the creation of an email address of the company costs only $ 500. You need to invest $5,000 in a website. It is difficult to entrust a team of brokers who are not able to spend such money on creating a resource for promotion.

Reputation

Shippers are in close contact. Each company has its trusted brokers, whom they regularly cooperate with. The exchange of information about reliable delivery specialists between firms is a common occurrence.

Find out if your potential cargo broker is a member of a trade association. If yes, he has the right to place the logo of this association on his website. This is an indicator of the prestige of a brokerage company.