The Importance Of A Freight Broker

The job of a freight broker has to do with logistics. A freight broker liaises between manufacturers, wholesalers and distributors in order to ensure safe and punctual transportation of goods to the designated destination point of resale. The profit on the transaction is known as freight brokerage.

The profession of freight broker has its origins at the early part of the last century. A licensed freight broker is either a company or an individual, and the companies which contract a freight broker may rely wholly on them for their shipping needs, as a result doing away with the need for a freight broker department of their own.

At the moment there are about four thousand licensed freight brokers in the U.S., although only about half work as such full time. Formal qualifications are not a legal necessity, but there are institutions that offer training on being a freight broker and issue diplomas. Licenses are issued by the Federal Motor Carrier Safety Administration - FMCSA - and they must prove adequate insurance coverage to cover client losses in order to be able to operate as a freight broker. When you choose a freight broker, bear this point in mind. Be sure to check carefully, because for-hire motor carrier authority is not the same thing.

Also multiple transportation modes are a must. Three alternatives should be available if anything goes wrong during the operation. How a freight broker chooses its carriers is also important, be sure you know their selection criteria.

Another thing to keep in mind is that not all carriers are equally trustworthy or reliable. Steady lines of communication are vital in this industry. Ask freight brokers how they match loads to carriers, how they confirm correct pick-up.

If you need information on freight companies you will find it freely available on the Internet.