How to check if freight broker is legitimate

Millions of tons of cargo are transported daily around the world by various modes of transport. Behind all operations for the delivery of goods are responsible people who are responsible for everything. These are cargo brokers. The success of the business depends on their qualifications, work experience, organizational talent, level of responsibility. A good cargo broker is needed by the company like air. It can do a lot of useful things:

  • Deliver goods to their destination in a safe and sound time;
  • Save time and money;
  • Establish new trade relations;
  • Determine the degree of reliability of the client;
  • If necessary, to represent the interests of the company in negotiations.

Such reliable brokers are not easy to find. Before risking a large volume of cargo, it is better to look for a good licensed cargo broker.

How to find a good freight broker

Many thriving companies with extensive experience have permanent intermediaries. Beginners face the difficult task of finding a reliable broker for the delivery of goods. There are several ways to positively solve this problem:

  1. Determine whether he has a license from the Federal Carrier Safety Administration (FMCSA). Information can be found on the official website. If the specialist does not intend to provide such data personally, it is better not to deal with him. The intermediary must also have a guarantee of at least $75,000 to obtain a license. This amount is intended to protect carriers from the consequences of poor broker’s work.
  2. Check the financial solvency of the client. Before signing the contract, you should make sure of the creditworthiness of the broker. Otherwise, you can lose a lot of money. Halfway through, the broker may not be able to ensure the delivery of the goods. Then all costs will fall on the shoulders of the shipper.
  3. Check the efficiency of work. A long service life is not a guarantee of successful work. Often, young ambitious freight brokers turn out to be more reliable than old-timers. They have dozens of successful delivery operations behind. They manage to easily cope with obstacles encountered on the way.
  4. Make a list of reliable intermediaries with whom you have already worked. It’s better to see once than to hear a hundred times. If the broker has already proved himself in your company, you should continue to monitor his work with other clients. Perhaps you will find a regular customer in him.

Conclusion

Trust, but verify. This rule should always work when looking for experienced brokers. One disrupted delivery of cargo can bring millions of losses to the company. To minimize risks, it is better to turn to experienced and educated freight brokers.

Our company specializes in training specialists for logistics. Freight brokers who have passed our courses successfully work with large companies. Come to us and we will make you a logistics professional in a short time.