Freight Broker: Benefits and Precaution
A freight broker has a role to play in every business that involves transportation of goods whether interstate or international. A freight broker can ease out the things for you and save you a lot of time and money. However, there are also some precautions that can ensure that the freight broker is a legitimate one.
Pros of having a Freight Broker
- Information and knowledge are the tools to success in any field. However, if you do not possess them, you can hire a freight broker as they have a vast knowledge of the shipping options available in the market that you may consider for improving the delivery mechanism.
- There are different rules and regulation involved in the transportation of goods, both interstate and overseas. As different regions have different laws that the freight brokers know and can assist you in the whole process of transportation.
- Freight broker knows the documents and paperwork that is required for permit and license. They can help you in preparing and filing the documents and also talk to related agencies for approvals.
- Dealing with a traditional freight service provider may not be easy. Freight brokers can solve issues related to shipment size, weight or any other specific measurements that the service provider may not agree to.
- They have a strong network in the shipping industry. This can come handy in case your shipment runs into any trouble. The would know whom to call and what should be the steps taken to resolve the issue.
- With the experience that they have, they can help you identify any potential hurdle. Also, the experience comes handy when troubleshooting an urgent or emergency issue.
- The broker will treat each and every consignment with an equal amount of vigor and find a carrier service at the best possible price.
Precautions for Choosing a Freight Broker
When doing business, you require people and agencies that are reliable. Otherwise, there is no use of hiring a freight broker who charges heavily and can not deliver. Even if the broker is an expert at he does, you must check that the broker is legitimate. Here are some tips that can help you to check whether the freight broker is reliable or not.
- Check the credentials online to verify if the license possessed by the freight broker is valid or not. He or she should be registered with Federal Motor Carrier Safety Administration, the body that regulates all the activities of the freight broker.
- The broker must be registered with UCR, that is, Unified Carrier Registration program. According to which all motor carriers, freight forwarders and brokers must pay fees to the state. This came into effect in the year 2007, and any broker or freight body who fail to pay the fees is a subject to the law. The fees are based on the number of commercial vehicles in their fleet.
- An insurance certificate is not required by law for any freight broker. However, it can help in making the broker more trustworthy as there is a potential risk involved in the mitigation process.
A freight broker has many benefits and can assist you in the saving your money and time. However, you need to be alert in choosing the people you want to work with. Once you find a reliable source, you can work together progressively to boost the profits and deliver better.