Freight brokers are the matchmakers of the shipping world and choosing the right one can mean the difference between a stress-free, long-term relationship and a messy breakup. Finding the right broker can make shipping easier, but choosing the wrong one can lead to serious consequences, including higher costs, longer delivery times, and unreliable service.
Brokers don’t take possession of freight, but you still depend on them to ensure your goods arrive on time, in full, and intact. With more than 25,000 registered brokers and the possibility of others that aren’t registered, how can you be sure you’re choosing one who is in it for the long haul?
We’ve put together this post to help you make informed decisions when choosing who to trust with your cargo.
Freight brokering explained
Freight brokers are licensed intermediaries who connect shippers needing to move freight with motor carriers that can haul it. Brokers are regulated by the Department of Transportation’s Federal Motor Carrier Administration (FMCSA) and play a critical role in aggregating available capacity.They serve as a single point of contact for booking loads, negotiating rates, arranging transportation, and overseeing the shipping process.
Key questions to ask before choosing a freight broker
Asking the right questions upfront can make all the difference. Here are a few questions to ask before engaging a broker.
Are you properly licensed?
Reputable freight brokers will be registered with the FMCSA, and you can verify a broker’s credentials on the FMCSA’s website.
Are you bonded and insured?
Brokers must have a surety bond of $75,000, and you can look up a broker’s surety bond status on the licensing and insurance section of FMCSA’s website. While surety bonds are mandatory, brokers are not required to have cargo insurance. Some brokers carry it voluntarily, and you can request a certificate of insurance directly from the broker. Just be sure to check the policy’s expiration date. Another option is to use a third-party compliance service that monitors a broker’s authority, safety ratings, and insurance.
Do you specialize in specific lanes or modes?
Not all brokers specialize in certain areas, but some may focus on full-truckload freight, less-than-truckload freight, regional routes, or specific shipment types, such as refrigerated goods or oversized loads. Understanding a broker’s expertise can help ensure they have the right relationships and experience to meet your freight’s requirements.
Do you have your own equipment?
Brokers can be asset-based, meaning they own trucks or trailers, and non-asset-based, which means they don’t have any equipment and instead rely solely on carriers to move shippers’ goods.
Amazon Freight, for example, is an asset-backed broker with more than 70,000 trailers and 24,000 domestic intermodal containers that you can leverage.
What technology do you use?
Modern brokers should offer technology that provides shipment status, automated pricing, and visibility tools. API/EDI integrations and self-service booking can increase efficiency and help keep freight moving smoothly.
How do you handle delays or disruptions?
Delays and disruptions are inevitable in the freight industry, but you need to be able to get ahead of them quickly. Ask brokers how they proactively handle issues, if they offer real-time alerts, and if they provide 24/7 human support. Clear, timely communication is essential when things go wrong, and having a human touch can provide added assurance.
What is your pricing model?
Brokers typically offer either contract rates or spot quotes. Be sure to clarify how fees are structured, such as flat rates, percentage-based commissions, or per-shipment charges, and ask about additional fees, including accessorial charges.
What sets you apart from other freight brokers?
Leading brokers distinguish themselves with robust technology, strong customer service, and transparent operations. Customer testimonials and case studies can provide meaningful evidence of a broker’s capabilities and track record.
The bottom line
Due diligence when choosing a broker is more important than ever. Asking informed, targeted questions can help you build reliable, long-term relationships and get the service you need. The right broker should give you peace of mind that your freight is in good hands, not keep you up at night.
Get started today
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