Know The Distinction Between a Freight Agent And a Freight Broker

Knowing the difference between the freight agent and the broker is the confusion that exists when it comes to the transportation industry most especially for the people who are new in using the Full service logistics. Some people may even like to combine two terms, Freight Broker Agent and it is important for everyone who wants to use the Fulfillment services to know the difference. The freight broker is a person who serves like intermediary between the motor carrier and the shipper. Read more at

The freight broker may be called transportation intermediary and the transportation broker. Freight brokers are given the license from Federal government and their job is to arrange the service for the purpose of transportation. However, the broker is never going to touch on the cargo physically. If it is not in the contract, the broker will not be responsible for delay, damage or the loss of the cargo. Know The Distinction Between a Freight Agent And a Freight BrokerEven if the freight broker may not be responsible for the cargo claims, he is responsible for the payment of the transportation service and it will act as the bank of a certain type. This is why the freight broker is needed for the federal law and it holds the minimum of 75000 in the surety bond. This is the way to protect the motor carrier or the Fulfillment companies when there is no payment. When the Houston freight broker fails to pay the motor carrier, he will have to collect from surety bond. When it comes to the freight bond, there are many things to learn about but the most important is to know what differentiate the Houston freight brokers and the agents. Click here to read more info about Freight brokers.

The freight agents are most of the time the individual who works for freight brokers and they are paid 100 percent of the commission. Freight agents are operation and sale people who can hold the book of the shipper clientele and they may leave the freight broker and they can take the customers when they go away. The freight agents, unlike the Freight brokers in houston, they are able to hire the operational staffs to work in their offices. These are known as the freight agencies. The freight agencies may work under an umbrella of the FTL freight brokers for different reasons.

The freight agents take advantage of the deeper pockets that the brokers have. They have a good relationship with the banks and they have a line of credit. Many brokers may pay for the delivery service in just 2 weeks after the delivery of the items. However, the shippers are known to pay the Best freight brokers in over a month. This means that there are 2 weeks that a freight broker should look for his means to get the money on his own by the use of the line of credit and the cash reserve to pay the agent commissions, to keep the lights on and to pay the administrative salaries. Because of the surety bond, the brokers may be able to transport the oversized loads Houston compared the agents. Whenever a broker cancels his surety bonds, he will also lose the authority of working as a broker.

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