When you explore the ground transportation and freight industries, you find that the line between success and failure is frequently thin and is expertly walked by knowledgeable truckload/freight brokers. Choosing the appropriate freight brokerage can literally and figuratively mean the difference between your goods being transported successfully and not at all.
Brokers are essential to the market since they act as a middleman between shippers and carriers. They can arrange for the transportation of goods for one-time or recurring freight, and a large part of what they do is help shippers locate the best solutions for their needs and budgets.
Inexperienced shippers or carriers frequently attempt to handle this on their own, only to realize midway through how time-consuming it may all be. This leads many companies to deal with the incorrect broker, who will offer to save them time but frequently result in significant supply chain inefficiencies.
Regrettably, not all freight brokerage services are as competent as they claim to be, therefore it’s critical to distinguish between the correct and wrong ones in this industry. Delays in delivery, lost, or damaged cargo, all of which result in financial losses, are possible causes. In this post, we examine several of the red flags or warnings to look for when picking a Freigth Brokerage Services, even though some of them may be subtle.
Inaccessible or unresponsive brokers
When it’s difficult to reach someone by phone or email, it’s certainly a warning sign. This means, on the one hand, that they are not trustworthy, but it also means that they do not have time to work with you. Regular communication is one of the most important aspects of this business and you need people who are available and responsive – the antithesis of these.
Shady fees
Transparency is another important factor in this business (and any other). More hidden costs may await you than you would like if a broker is evasive about their fees or does not take the time to explain the purpose and amount of charges. Before proceeding with any shipment, a good broker will make sure you are comfortable with their pricing structure and help you understand all the costs associated with transporting your products.
Limited options
A broker will have fewer options to offer when they work with a smaller amount of carriers. When a broker is unable to contact more carriers, it usually indicates that there has been negative business in the past or that there is a secret, since most carriers are open for business and will be able to negotiate most terms. The absence of full truckloads, LTL, or expedited shipment are red flags to watch for. Less options also mean less opportunities to obtain better rates.
Lack of insurance or unstable finances
Stay away from anything that endangers your cargo. You should avoid doing business with a broker if they offer insufficient insurance coverage or if financial health checks are not available. The best way to cover this and find out the broker’s policy is usually to request a Certificate of Insurance.
Non-compliance with industry standards
No matter how much of a free spirit or non-conformist the broker is to the rules, in this industry you need to keep everyone pleased, including the government. Although this government tends to be forgiving, there are some flags you need to be aware of. The government requires brokers and carriers to follow specified requirements and laws. One of them is what is known as Conditional Safety, and it denotes the carrier has a history of several infractions, such as failing to comply with laws, failing to secure their cargo, or failing to follow correct procedures. A freight broker must adhere to all laws and regulations, and the carriers they work with must have top ratings.
For companies that ship frequently, freight brokers will make the shipping process considerably simpler, which is excellent and beneficial. Access to a single point of alternatives, including LTL, full truckload, intermodal, and specialist services like temperature-controlled transportation, is made possible via brokers’ networks.
Your supply chain’s efficiency will also increase with the correct freight brokerage services. They will work with carriers to guarantee that your items are dispatched promptly and with the fewest possible delays. Also, they can effectively correct any deficiencies in your system and let you on how to avoid them.
You’ll be in a better position to choose the best broker for your company by being aware of these typical red flags.
At Go To Truckers, we specialize in dry and refrigerated cargo, primarily serving the food and dry goods industry. Our agents have established excellent relationships with companies in Texas, California, Florida, and Georgia, helping them save time and improve the quality of their lives without stress. Do not hesitate to contact us at f.campione@gototruckers.com to take a step towards increasing your productivity