How to Select a Freight Broker for Your Trucking Company?
Typically, a freight broker acts as the liaison between an authorized trucking company and an individual or company that needs shipping services. The role of a freight broker is essential to moving cargo to its final destination, he or she is not the shipper. Rather, you would hire a freight broker to look after your needs as the trucking company willing to transport the shipper's items for a reasonable price.
Many of the services offered by a freight broker are valuable to your trucking company. They can help you connect with reliable shippers that will increase your earnings. Shippers look for the same from reliable carriers to handle their cargo properly.
Hiring a quality freight broker is a versatile component of your vendor relationships. It is also one of the most important parts. Selecting the right freight broker to fit your needs requires following a few essential steps.
Freight Brokers – How do I find a good one?
1. Are they TIA Certified?
The Transportation Intermediaries Association (TIA) is the premiere organization for third-party logistics professionals doing business in North America. The TIA Code of Ethics promotes the highest standard of ethics within the brokerage and third party logistics industry. Since 1978, TIA has made adherence to the TIA Code of Ethics a mandatory requirement for membership.
2. Insured Freight Broker
Not only do you want to hire a licensed freight broker, but you also want one that carries adequate insurance coverage. Just as you do for your trucking company, insurance is essential to protect you in the business world.
3. Look for a Freight Broker That Offers Multiple Services
In general, freight brokers primarily offer motor carrier services. Some also include multiple service modes including, but not limited to warehousing, air freight, flatbeds, vans and rail intermodal. This flexibility is a good sign that the freight broker can back up shortages that may occur with one mode.
4. Evaluate the carrier management process
To avoid unwanted surprises and problems, brokers must communicate constantly with carriers. Giving instructions over the phone is not enough; look for brokers who communicate in writing when instructing carriers. Ask brokers how they match carriers to available loads. How do they confirm loads were picked up and delivered as promised? Ask to see copies of their correspondence with carriers to see how comprehensive it is.
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Additionally, you also want to consider the costs associated with hiring a freight broker. A good one will save you money; a bad one will cost you money and important business opportunities. Keep these tips handy when selecting a freight broker for your trucking company so there are no regrets.