Freight brokers are the ones that transport cargo from point A to point B. They work collectively with suppliers and couriers, and are usually a conduit between a company that has the goods, and the company which is ready to move someone’s goods. So, when you are looking for one how do you choose? Do you just search it on google and pick the first one you see, or do you want to know more before working with them? Below are 10 essential things that you should know about freight brokers.
10 things you should know about Freight Brokers
- Are they properly licensed?
Before booking a broker make sure that they are properly licensed. Do not hire companies that represent themselves as freight brokers but do not possess a license. The federal law states that anyone doing transportation of cargo must have a federal property broker license issued by the Federal Motor Carrier Safety Administration or FMCSA.
- What is their experience?
When choosing a freight broker you should always choose a well-established and experienced one. There are many advantages when you choose a well-experienced freight broker. Firstly, their experience will bring quality and reliability which means you can trust these freight companies with your cargo and the time it will take to transport. They know what they are doing. Second, freight brokers work as a “middleman” and therefore they establish a lot of connections between the transportation companies which specialize in various forms of transportation like land, air, and sea travel. This can be beneficial in certain situations depending on your needs.
- Do they offer cargo insurance?
Cargo insurance is something you should pay attention to. Many people overlook this factor and end up in trouble. Always ask your broker for general liability as well as a cargo insurance certificate to be fully assured. The broker will give you an idea of your coverage cost and if it is deductible or not.
- Are they multi-channeled?
Most freight shipping within Canada provides LTL motor and truckload carrier services. Other service options like ocean shipping, air cargo, warehousing, project freight, and customs brokerage services are also available. When looking for a broker one must see if its multi-channeled which means its areas of expertise include both physiography as well as operational. Brokers who can offer various modes of services can always have a backup if there is a shortage in one mode. They can also provide shipping for not only huge companies but start-ups that cannot afford their own staff.
- What Carriers are used?
The safety of the cargo is a top priority, therefore the broker must be fully sure of the carrier being used. Their safety records should be checked prior to their use in the business. Be sure to ask your broker all the right questions because the carrier they use will also be your carrier.
- What is their pricing?
A good deal is always better, but be careful because some things do not come cheap in this business. Whenever you are dealing with a freight broker make sure to get everything in writing and all types of charges are mentioned. When looking at ocean and air freight, the charges can go as high as 50% of the price of the shipment. Therefore, there should be clear communication between all the parties involved, especially your customer and the broker, on who is responsible for taxes on international cargos. Taxes can put a 30% cost addition to the freight. The average cost of freight shipping US to Canada for LTL can range from $135.39 CAD to $222.22 CAD.
- How reliable are they?
Being able to rely on your freight broker is very essential and there are many reliable companies that provide freight broker services Canada. If you are uncertain about the safety of your cargo, then it will not be a smooth process. Therefore, when choosing a broker, you need to do thorough research about their reputation in the business, their rates, their carriers, etc.
- Do they have good communication skills?
It is the fright brokers and its drivers that communicate with your customers, and basically represent your company. Therefore, they need to be proficient in their language skills. As well, you are always in continuous contact through emails or phone calls with your broker till the cargo is dispatched and shipped. Therefore, when choosing a fright broker their communication skills are extremely important.
- What is their creditworthiness?
Always run a credit check on the company you are working with as it can be that they are under recession and investing in such a company can be dangerous. There’s nothing wrong with being cautious. Different things should be considered like what is their payment process? How long do they take to make their payment? etc.
- Do they have references?
References are very important because you learn a lot about a business when you see the different types of companies they deal with. When looking for a broker make sure you check many companies and learn about their backgrounds. For example, a person looking for the best freight booking Canada should go through all the brokers and choose the right one as per their requirements.
All these things must be considered when looking for a freight broker. When you thoroughly understand the process and learn about each and every possibility then the process gets a little easier and you are able to make the right choice. The important factors like your cargo, the weight of your cargo, the pricing, the carrier which is being used, the drivers involved, mode of transportation, etc. are essential components to be considered when looking for a freight broker.
- Posted by admin
- On April 30, 2020