| A freight broker's job is all about logistics. The broker | | | | Information on freight companies is freely available on |
| liaises between manufacturers, wholesalers and | | | | website directories, such as American Freight |
| distributors to ensure safe and punctual | | | | Companies at This useful resource lists freight |
| transportation of goods to the designated destination | | | | companies according to twelve categories: companies |
| point of resale. Profit on the transactions is known as | | | | are listed in up to twelve different categories: Freight |
| freight brokerage. | | | | Companies, Common Carriers, Shipping Companies, |
| As a profession, it has its origins at the early part of | | | | Trucking Companies, Motor Freight, Freight |
| the last century.Licensed brokers are either | | | | Services,Truck Load Freight, Furniture Shipping,Rail |
| companies or individuals, and the companies which | | | | Freight and Special Freight Services. All the listed |
| contract them may rely wholly on them for their | | | | freight carriers have negotiated some kind of |
| shipping needs, thus doing away with the need for a | | | | discount with American Freight Companies. How long |
| department of their own. There are currently about | | | | has the company been operating? The first couple of |
| four thousand licensed freight brokers in the U.S., | | | | years of any new business are fraught with problems |
| although only about half work as such full time.Formal | | | | and cash flow difficulties. An established company has |
| qualifications are not a legal necessity, although there | | | | proved its worth. If you do not know much about a |
| are institutions offering training in the speciality and | | | | freight broker, use this as your basic criterion. |
| issue diplomas. Licenses are issued by Federal Motor | | | | Membership of the industry trade group |
| Carrier Safety Administration (FMCSA)and they must | | | | Transportation Intermediaries Association (TIA) |
| prove adequate insurance coverage to cover client | | | | voluntarily abide by a strict code of ethics, so you |
| losses in order to be able to operate. | | | | are on to a safe bet if you opt for one of these |
| When choosing a freight broker, bear this point in | | | | companies. For all transactions with a freight broker, |
| mind.Check carefully, because for-hire motor carrier | | | | make sure you have a written contract. This will |
| authority is not the same thing. Multiple transportation | | | | avoid problems later on about establishing |
| modes are a must. Three should be alternatives | | | | responsibilities. You can visit to find more information |
| available if anything goes wrong during the operation. | | | | about dealing with freight brokers. |
| How does the broker choose its carriers? Their | | | | Find out if they have ancillary services, and if so, |
| selection criteria are very important. Not all carriers | | | | what they cover. Ask them to explain processes - |
| are equally trustworthy or reliable. The lines of | | | | the more communicative they are about their |
| communication are vital in this industry. Ask brokers | | | | procedures, the higher chance it is a reliable firm. You |
| how they match loads to carriers, how they confirm | | | | should also always ask up front for an estimate of |
| correct pick-up and even view a selection of | | | | the costs of your operation and compare this to |
| correspondence. | | | | other freight brokers'. |