This is a question that has been asked to us by new clients a great deal lately. In the recent years, more brokerage operations have flooded the industry making it challenging to know if your freight broker you selected is legitimate in terms of licensing, bonding and business operations.
In an article written by Eric Weisbrot from JW Surety Bonds, here a few ways to double check your freight broker to ensure you are getting what you are paying for.
- Check for Freight Broker Registration
All Freight Brokers are required to register and hold a license with the FMCSA. You can search online at www.safer.fmcsa.dot.gov for their respective licenses. Not only can you check the validity of their licenses, but it also provides information if the license was ever revoked, if and when reinstated and how often that has taken place.
- Is Your Broker Insured and Bonded?
Another requirement of the FMCSA is that all freight brokers hold a broker bond with a minimum requirement of $75,000. This requirement is in place to ensure freight brokers handle business is a safe and lawful way. The Safer website from above will also list this information, but be sure to check that the certificate provided directly from the broker matches what the site states.
- Check Freight Brokers Reviews/Feedback
It would be in your best interest to take the time and go online and google the Freight Brokers business and read the reviews or feedback left by other clients that have done business with them. This can give you a good insight of how the Broker conducts business. If there are many of the same type of complaints, this may bring up a red flag. On the other side, many compliments can ensure a good relationship.
- Check Freight Brokers Alert Lists
With so many new brokers coming into the industry every day, there is unfortunately many that will collect the money to have the shipment transported, but then they will not pay the Carrier for their services. This has forced many Carriers to proceed with Collection Processes and legally the Collection companies can and will come back after you, the shipper or consignee, for payment yet again. There is a website, www.freightbrokeralert.com where you can search the Broker to see if they appear on this list. If they do, proceed with extreme caution.
With all the competition in the transportation industry, it is critical to research each freight broker you plan to work with to ensure they are legitimate.
BeKa Holdings, LLC takes pride in the services we provide and the positive feedback we have received from our clients. Our motto is “The missing piece to your transportation needs”. Give us a call to help you with that “missing piece”.