6 Tips for Choosing the Right Freight Broker For Your Business

Monday, 02 September 2019 | Freight broker

As e-commerce continues to grow exponentially, businesses are required to find solutions that meet customers’ evolving preferences. Freight shipping has become a critical element that determines the success of B2B and B2C businesses. Rather than dealing with limited internal resources and increasing complexities of supply chain management, it would be ideal to turn to freight brokers and third party logistics (3PL) providers. Acting as a trustworthy conduit between shipper and carrier, freight brokers manage your shipping and logistics operations efficiently. Seeking the services of a 3PL company will allow companies to focus efforts on their core competencies and business goals. 

The primary function of a freight broker is to ensure your customers receive their orders safely at the right destination on time. And your choice of freight brokers can make or break your business. For instance, successful and long-standing freight brokers can deliver value and timely service to the clients thereby improving the shipper’s brand reputation. On the other hand, shoddy services provided by freight broker or 3PL company can tarnish the shipper’s reputation. So, it is crucial to make sure they understand your requirements and tick all the right boxes. Here are a few practical cues that will help you choose the  right freight broker to fit your needs. 

  1. Have a detailed understanding of your needs. What mode of transport are you looking for? What would be the order categories? What volume you plan to ship? Define your requirements and know your specific needs before looking for a freight broker. 

  2. Do check their credentials. Freight brokerage is a licensed industry with bonding and insurance requirements. Browse Federal Motor Carrier Safety Administration’s (FMCSA) website to check whether your selected freight broker is properly licensed and bonded.

  3. Conduct a background check to know about their industry expertise and experience. How long they have been in business? Do they have experience shipping your product category? Most freight brokers and 3PL companies offer multiple modes of services including, but not limited to airfreight, trucking, rail intermodal and warehousing. 

  4. Enquire about their carrier vetting process. You should select a freight broker who works with the most reputable carriers in the industry. Hence, don’t hesitate to ask pointed questions about their vetting process.

  5. Ask about cargo insurance options and claims. Choose a freight broker that can provide both general liability and cargo insurance. This would help you file a claim and get compensated, if the cargo becomes lost or damaged. 

  6. Follow up with the references. A freight broker should be able to provide you with accurate references upon request. Do get in touch with their past clients and confirm how trustworthy the potential freight brokerage company is.

Do proper research and inquiry before taking a final decision.  Having a reputed freight broker as your strategic partner helps you stay current with the needs of consumers.