Choosing the right freight broker for your shipping business is very important. To ensure you make the right choice, you need to ask the right questions. In this article, we will explain to you how to choose a freight broker by following these six pieces of advice.
1. Always go for a licensed broker
Always ensure that the broker possesses the proper authority and license to offer their services. If you work with carriers who broker loads but do not possess the federal property broker license, you’re putting your business at risk.
2. Find a broker who offers multiple shipping options
Most of the freight brokers you’ll find will only provide Full truckload carrier services. However, it’s best to work with a broker who offers more shipping options like LTL, flatbeds, hazmat, drayage, and more. This will make it easy for you to get all options you need from one source.
3. How does a broker choose a carrier?
Find out what is the process of carrier selection and how the criteria of that selection look. Before a broker onboards a carrier, the broker should verify the company’s authority, safety rating as well as insurance coverage. Your broker should also have a valid written contract with the onboarded carrier.
4. Experience matters
Choose a broker with at least 3 years of experience. That broker survived and prospered in the industry and it’s a good sign that your business will be safe with them.
5. Check the broker’s insurance
Don’t risk working with an uninsured broker. The insured broker will be able to pay any losses or claims for damages if the carrier or insurance company refuses to repay. A good freight forwarder will have both liability insurance and “errors and omissions” insurance.
6. Always sign a contract
You’ll need a written agreement with the broker that outlines the terms and conditions of your agreement. This will help avoid costly misunderstandings or unrealistic expectations that may arise from time to time.
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Super Ego Logistics provides transportation solutions that align with your supply chain goals and needs, whether it is a spot shipment, next-day, project-based, or contracted freight.
Supported by Super Ego Holding