Truck load brokers are often the primary carrier of choice when the demand for shipping freight surpasses the capacity of asset-based carriers. Shippers that use brokers have access to increased capacity without having to manage and find new carrier relationships. Finding the right broker to meet a shipper’s needs is important, and there are several factors to consider in this process.
Licensing Requirements
Anyone who arranges transportation of cargo for compensation is required to have a federal property broker license issued by the Federal Motor Carrier Safety Administration. Once truck load brokers receive this authority, they are issued a motor carrier number which can be verified by research on the web.
Multiple Carrier Services
Most truck load brokers provide motor carrier services using trucks but some offer additional options such as flatbeds, vans, and logistics management services. Brokers that have several transportation channels can back up shortages in one channel with capacity in another.
Broker Carrier and Trucking Selection
Trustworthy Brokers verify the operating authority of their carriers, their insurance coverage, and their safety rating. They also always have a written contract with their carriers.
Often brokers simply use electronic posting services, where brokers post available loads and carriers post available trucks. The more competent brokers will have a network of carriers or use web-based tools to search for new carrier contacts. Private, dedicated fleets and large motor carriers are very selective about the brokers with whom they work so those that have developed relationships with these carriers will be more effective at covering loads than those who rely solely on electronic posting services.
Carrier Management Process
Brokers are in constant contact with carriers so as to avoid unwanted surprises and problems. The best brokers communicate both over the phone and in writing. Their correspondence, whether by paper or email, should be comprehensive and include confirmations that loads were picked up and delivered as promised.
Additional Factors
Brokers that have contingent cargo insurance provide shippers the second level of protection by paying claims from the shipper for damage or loss if the carrier and its insurance company refuse to pay. Brokers should also carry liability insurance as well as errors and omissions insurance.
Truck brokering is a service industry and so the companies that survive and prosper have a long history of executing successfully.
