A transport broker is a type of cargo broker that manages the transportation and shipping of vehicles. The majority of vehicles shipping in the U.S. are trucks and cars, but many brokers can also handle motorcycles, boats, RVs, and other types of vehicles also. Transport brokers are hired because they can gain access to freight load boards where they find carriers that have open loads in the same area. They may also get lower shipping prices by obtaining bids from multiple carriers. We have some tips for choosing the right transport broker for you.
First make sure the transport broker is licensed. It is required by federal law that anyone organizing transportation for compensation must have federal property broker license that is issued by the Federal Motor Carrier Safety Administration (FMCSA). It is important to know that for-hire motor carrier authority is not the same as broker authority. You should also inspect the broker’s carrier selection process. You wouldn’t trust just any carrier with your vehicle and neither should your transport broker. Be certain your broker is not only utilizing electronic posting services. Proficient transport brokers will use multiple resources to cover your load. Picking a transport broker who is publicly committed to integrity is a great way to avoid untrustworthy brokers.
Some other suggestions include finding out how long the transport broker has been in business, and making sure the broker carries sufficient insurance. Transport brokers should be financially secure and able to pay their carriers. Be sure they don’t have any liens or legal judgements against them. You should avoid transport brokers with financial issues. Choosing a transport broker that has been in business for a longer period of time will align you with an experienced, successful broker. Most brokers carry contingent cargo insurance to pay shipper loss or damage claims if the carrier’s insurance company refuses to pay. This coverage provides shippers a second level of protection.