There are some reasons to use a Houston Freight Broker, maybe you have purchased an item across the country or need an item sent to your customer and are looking for an easy and inexpensive way to do so. Whatever the reason, this guide has been developed to help you select a high-quality Houston Freight Broker.
Do They Have a Freight Broker Bond and Operating Authorities?
The Federal Motor Carrier Safety Administration (FMCSA) requires that freight brokers have a BMC-84 or BMC-85 freight forwarder bond in the amount of $ 75,000 to maintain an active authority operation. The BMC-84 is a guaranteed voucher provided by an insurance company that is willing to guarantee the $ 75,000 in case the broker does not comply with the payments. The broker will pay an annual premium of $ 1,000 to $ 12,000 to obtain this insurance.
The BMC-85 eliminates the insurance company and the broker or bank puts it into operation by placing $ 75,000 in a trust fund. The major benefit for a trucking company is that they have a little more assurance that they will receive the payment and that a less reputable broker will not take the customer’s money and run without paying the truck driver. The benefit to the carrier is very similar in the idea that they do not have to fear that after paying the broker, the trucking company will chase them later if the broker takes off. This has helped reduce the amount of fraud in the industry since the broker now has to be financially stable before they start.
Do They Have Adequate Insurance to Protect Your Goods for Transportation?
Most likely, the trucking company that the best freight brokers hire for you have more than enough insurance to cover the value of your assets in the event of an accident, but it is a great idea that the broker also has insurance. You will want your broker to get adequate insurance in case the trucking company runs with expired insurance or the broker forgets to verify the insurance of the trucking companies in the first place. A reputable freight agent will have this insurance in place and will probably provide you with a copy before you have the opportunity to request it. Click here.
Can You Find References or Unbiased References?
It is likely that a good freight broker has commented on Google about previous shipments; however, remember that there may be higher on the negative side since a person who had an experience is much less likely to take the time of your agenda to write a Review first. The right place to start would be with a friend or university that is in the shipping business. The broker can provide references as well, but unless it is from a reputable company, it is probably not very useful.
Has the Freight Broker Ever Done This Before?
Another vital part to search for is if the broker has some experience in freight brokerage. You’ll want to ensure they know what they’re doing, since transporting goods is not as simple as calling a truck company and reclining. They may have experience in the transfer of cargo in a dry van, but no experience in the movement of agricultural equipment. Different types of cargo have many different requirements for them to be shipped. An experienced broker will be able to answer any questions you may have about the transfer of goods quite well.
These are just some of the key areas to consider before choosing a Houston freight broker to move your freight. An agent that gets good grades in the four areas above will make sure your shipment moves quickly, on time and within budget. Check out this site: https://www.adamsdist.com/warehousing-and-distribution-services-for-businesses/