In the US, an efficient way of moving goods from one point to another is by looking for a carrier with unoccupied cargo space. However, running up and down looking for trucks or rail wagons that meet this requirement can be difficult. As such, it is advisable to hire a freight broker to do all the legwork for you. Here are six factors to consider when hiring a freight broker:
Licensed
Go for a freight broker with a license from the Federal Motor Carrier Safety Administration (FMCSA). This is because brokers who arrange cargo transportation for compensation in the US must comply with a federal law that requires them to have an FMCSA license.
Carrier network
It makes sense to work with a cargo broker who has built a wide carrier network. This means one who can arrange freight transport via rail, ship, air, and road. Such a broker can help you move cargo regardless of size, pickup point, or destination.
Insurance coverage
Look for Houston freight brokers with adequate insurance coverage. This can be a surety bond, contingent cargo coverage, ‘errors and omissions coverage’, or liability insurance. The general rule of thumb across the freight industry is to have a surety bond of about $75,000. Contingent cargo insurance acts as extra protection in the event an at-fault carrier or an insurer refuses to settle freight damage/loss claims filed by brokers’ clients.
Reputation
A good starting point when evaluating a freight broker’s reputation is visiting the BBB website. If a broker has a good reputation, he/she will have a high BBB rating (anywhere from A to C). The opposite (rating of D to F) is true if a broker has a bad reputation. Another option is using search engines such as Google to find information (good of bad) related to a cargo brokerage.
Tech savvy
Look for a tech savvy cargo brokerage that offers solutions such as real-time freight tracking. Such information should be accessible on different devices including smartphones, tablets, as well as desktop PCs. This does away with the headache of waiting for a freight broker’s representative to call and inform you that goods have been picked, are in transit, or have been delivered.
Experience
It is advisable to hire a broker who has been in the freight brokerage business for several years. This shows that the broker has many satisfied clients, offers quality services, and is unlikely to go out of business soon. A cargo brokerage that has been in operation for at least two years is a good bet.
Conclusion
Freight brokers provide an essential service because they are the intermediaries who connect cargo haulers with excess capacity and individuals/businesses with unfulfilled shipping needs.
