Home » Business » Import and Export

Tips For Selecting The Best Logistics Freight Broker

Aug 9, 2008
Well, just incase you don't know what a freight broker is; I'll explain it to you in simplest terms. A freight broker is a person who basically is a go between for manufacturers, wholesalers and distributors whose main purpose is to ensure all goods being transported do so in a safe and timely manner to its point of destination, which is to the point of resale. A freight broker does profit on this transaction and that is how he is termed as a freight broker.

Here is another term associated with freight shipping. A freight broker's job is basically all about managing logistics. What is logistics? Well, Logistics encompasses the management and running of all processes of a product from production to the consumer's hands. It involves the warehousing, transportation, inventory, purchasing, packaging, operations, and the planning/coordination of all activities.

You'll find that licensed brokers are either companies or can be individuals. Companies who hire them do so entirely for all their shipping needs. There are approximately four thousand brokers operating in the United States. So with that said you need to be aware of the fact that freight brokers in the U.S. are not required to formal training with qualifications, they just have to be licensed.

Licenses are issued by Federal Motor Carrier Safety Administration (FMCSA) and they must prove adequate insurance coverage to cover client losses in order to be able to operate. So with that said, the best way for you to locate a reliable and trustworthy freight shipper is to specifically ask a broker:

1. How exactly do they match loads to carriers?

2. What system do they have to confirm correct pick-up and view a selection correspondence?

3. Inquire about "for hire" carriers. How does a broker select a carrier?

You can also look to the internet for answers as well. There is a ton of information related to this topic. I have found that freight companies are categorized in up to twelve categories such as Freight Companies, Common Carriers, Shipping Companies, Trucking Companies, Motor Freight, Freight Services, Truck Load Freight, Furniture Shipping, Rail Freight and Special Freight Services.

It is said that these carriers have negotiated some kind of discount with the American freight companies. Questions to ask them for instance is how long has a company been operating? It is understood in the shipping business that a company new to the industry is believed to have cash crunches and establishment issues.

I hope this can be a source for you to get an answer somehow to questions you may have had. Basically an established company has proven its dependability and reliability. Always get your estimate in writing from a freight broker so you can compare it to others. This is always for your protection just in case there is a problem you will need your signed contract as responsibility establisher.
About the Author
Get multiple estimates from licensed Freight Train Shipping carriers for Logistics including Freight, Ocean, Air export & Trucking Domestic heavyweight Air Freight Freight Forwarding services. Compare services to save you money today. Get your estimate in writing for your own protection.
Please Rate:
(Average: Not rated)
Views: 377
Print Email Share
Article Categories