GSIS

Why Every Shipper Needs A Freight Broker

You may have heard of freight brokers but are not sure of what they do. Simply defined, a freight brokeris a company that acts as a link between companies or individuals who need shipping services and certified motor carriers. It is worth noting that while brokers play a crucial role in cargo transportation, they do not in any way function as the carriers or shippers. The role of the broker is to identify the needs of shippers and then connect the shippers with carriers who are able to transport the goods at a reasonable price.

There are a number of reasons why you should consider using the services of a freight broker. For starters, you get the best prices for your shipments. It is the duty of the freight broker to find you the most affordable shippers available. Before settling on particular shippers, brokers take the time to compare bids from several companies.

Another reason to use freight brokers is that they help you save precious energy and time. Think of the amount of time you would spend searching for the most reputable and reasonably priced shippers. This is time that could be spent doing other important things. Having worked in the industry for a significant amount of time, the brokers know which brokers to use.

Though there are many freight brokers out, it is safe to say that they are all not equal. In order to choose the right broker, there are a number of things you should look for. Proper licensing is the first thing to look for. According to fleet owner: “Beginning Oct. 1 anyone acting as a broker or a freight forwarder, including motor carriers who broker loads, are required to register and obtain broker or freight forwarder authority from FMCSA. Brokers and freight forwarders will also not be subject to a minimum $75, 000 financial security requirement.” What this means is that you should only use freight brokers who have licenses from the FMCSA, or the Federal Motor Carrier Safety Administration. Hiring licensed brokers ensures that you are protected in case something goes wrong.

In the event that your shipment is lost or damaged, you need to be sure that you will be compensated. For this reason, you should choose a broker with insurance. In addition to liability insurance, good brokers also carry errors and omission insurance.

If you would like to know more about freight brokers GSIS is the company for you. Do not hesitate tocontact us today.