When shippers experience shortages in truck capacity, a good freight broker would help in weathering the storm. Freight brokers help when the existing carrier capacity cannot meet demand. Using a broker would help one in accessing increased capacity without troubling themselves in the management of relationships with new carriers. There are a few guidelines that would help in the selection of the best freight broker.

Licensing

There are laws that regulate the organization of commercial transport. It’s important to note that for-hire motor carrier authority isn’t the same as broker authority. Before settling for a broker, one should ensure they have proper licensing and authority.

Multiple Nodes

Typical brokers usually offer truckload carrier services, with some offering additional options such as warehousing and logistics management. Multiple modal options could be helpful in backing up shortages in a single mode with capacity in another. One can also access more options from one source.

Carrier Selection

It’s important to look into how the broker selects their carriers. Brokers need to check a carrier’s authority to operate, insurance coverage and safety rating. A written contract between the carrier and the broker would also be essential.

Some brokers simply utilize electronic posting services while others draw from a number of fleets. Dedicated fleets would be ideal for trucks, but are usually selective about who they work with. They also don’t disclose the capacity available. Brokers who make use of additional resources are capable of handling loads more effectively than their counterparts who only have electronic posting services.

Carrier Management

To avoid nasty surprises, there needs to be constant communication between a carrier and a broker. Simple phone conversations aren’t sufficient; there need to be written instructions as well. One must also inquire about how loads and carriers are matched. Copies of correspondence between the two parties must be provided in order to evaluate its comprehensiveness.

Credit Checks

Financial solvency is essential as it means that a broker is able to settle their financial obligations. One needs to find out how promptly they pay their vendors, whether they’re profitable and any legal decisions against them. If they don’t meet these criteria, one should steer clear of them.

Integrity Programs

A broker needs to abide by a strict ethics code when dealing with carriers and shippers. One needs to inquire about membership to the Transportation Intermediaries Association. Opting for a broker who’s committed to integrity is a good way to avoid tricky issues.

Details in Writing

One needs to make sure they have a written contract with their broker. This should explicitly spell out the various terms and conditions of the agreement.