A freight broker is an independent agent between a freight agency and a shipper. Freight brokers may specialize in certain kinds of freight, including hazardous freight, bulk cargo, oversize, auto, or any other kind of freight transport. Most freight agencies operate under the terms of a franchise agreement, with a freight broker acting as an agent for the agency. Under the terms of the franchise agreement, the broker provides the services for which the agency is accredited. The agency, in turn, pays the freight broker a fee. Click here to get more details about freight brokers.
There are several kinds of trucking brokerages. In the case of a large corporation, it is typical for an agency to hire several freight brokers to serve as agents for the company. When there is only one freight broker for a company, he becomes the company's representative. This here is referred to as a single agency freight brokerage. A freight brokerage is most common when companies have ties with shipping brokers, because this reduces their risk of hiring an improper broker.
There are several kinds of freight brokers. Each one has his/her own specialties and specializations. Brokers may specialize in one particular type of carrier, for example, serving exclusively freight brokers in the UK or handling all kinds of shipping needs. Brokers who are familiar with all kinds of carriers are in great demand because they know the market well and can get you the best deal for your business.
If you are considering hiring a freight broker, you should be sure that he is experienced and has a good track record. You should also check his background carefully to make sure that he has a surety bond, has a registration and is authorized to provide insurance coverage, and he has the necessary licensing. A freight broker can be very beneficial, but if you do not choose a trustworthy broker you will only be wasting time and money. Make sure that you select the best freight broker you can afford, one that has a good reputation and has all the required certifications.
Freight agents are also called logistics managers. Brokers bring together shippers and carriers, who in turn make transportation of goods from one point to another possible. Shippers arrange for transportation of their goods by using either trucks, coaches, airplanes or trains. They pay a fee to freight brokers who organize the transport of their goods.
When shippers find a freight brokerage that they are interested in hiring, they usually pay a deposit to secure a service. When a shipper deposits money for transportation, the broker then offers the service to shippers who have paid the deposit. Freight agents make sure that shippers locate the carrier that has the capacity to haul their goods to the destination of choice. Check out this related post: https://en.wikipedia.org/wiki/Freight_company to get more enlightened on the topic.
