There are a variety of reasons to employ a freight broker. Perhaps you’ve made a cross-country purchase or need to have an item (s) transport to a customer and are seeking a simple, cost-effective way to do it. When choosing an interstate freight broker, several things to consider, including legal, insurance, quality, and experience. Here are various factors you need to consider before you hire a freight broker:
Is there a Freight Broker Bond on file, as well as an operating authority?
To obtain this insurance, the insured (broker) will pay a yearly premium of $1,000 to $12,000. The BMC-85 does away with the insurance company. And also is set up by the broker or a bank by depositing $75,000 in a trust fund. The key advantage for a trucking company is that they have a higher level of assurance that they will be paid and that a less reputable broker will not accept the money from the customer and then fail to pay the trucker.
Do they have adequate insurance to cover your items during transportation?
Although the trucking firm that your freight broker or freight brokerage company chooses for you is likely to have sufficient insurance to cover the value of your products in the event of an accident, it is a good idea for the broker to carry insurance as well. If the trucking company’s insurance is expired or the broker forgets to check the trucking company’s insurance in the first place, you’ll want your broker to obtain sufficient insurance. In any case, you’ll want to make sure you’re protected.
Is it possible to obtain non-biased references or referrals?
A competent freight broker will most likely have Google reviews regarding previous shipments. But keep in mind that these are more likely to be negative than positive because someone who had a pleasant experience is far less likely to take the time to post a review in the first place. The most fantastic place to start is with a friend or classmate who works in the shipping industry. They’ve probably worked with one or more freight brokers before and can lead you on the proper path. The broker may supply references, but they are unlikely to be particularly relevant unless they come from a large, reputable organization.
Is this something the freight broker has done before?
Another key main to consider is whether or not the broker has prior freight brokerage experience. Because transferring freight isn’t as simple as contacting a trucking firm and sitting back, you’ll want to make sure they know what they’re doing. They may have moved dry van freight before, but they have never moved agricultural equipment. Different forms of shipment have a variety of requirements for shipping. If the item is being shipped internationally, check sure the interstate freight broker has experience doing so, as mistakes can cost thousands of dollars.