Tips for Selecting a Freight Broker

Businesses can benefit a lot from partnering with a freight broker in order to streamline their supply chain. There are many freight brokering companies available so you should know which factors to look for.

Consider the credentials of the freight broker.

They should have a valid license as this will demonstrate their authority to arrange freight transportation for your business. You need to ask them about their insurance coverage and the conditions pertaining to this. They should have cargo insurance with sufficient liability to protect shipments. Check how long the freight broker has been operating in the industry. The freight industry is diverse and there are so many unique challenges that can come up depending different types of cargo and different supplier requirements. You have to select a freight broker such as MF Freight that has sufficient industry experience and expertise. Check their track record when it comes to handling shipments to yours and how they navigate the challenges that come up. You can ask them to provide you with case studies as well as references so that you can get an idea of their success in managing logistics.   

Ask how the freight broker uses technology to improve their services.

For example, with real time trackingabilities, you will have continuous visibility into the movements of your shipments. You can ask them about their technological infrastructure including the tracking systems they use along with communication tools. They should have strong technological capabilities in order to provide transparency into the status of your shipments. This will also foster more trust as you will have a good idea of the progress of the shipments at all times and you will be able to provide this information to your customers as well. Consider the financial stability of the freight broker. You will need to verify their creditworthiness and this can be done by checking financial statements and credit records. A financially stable broker will be able to honour financial commitments ensuring the carriers are paid on time avoiding delays and conflicts. This will ensure your supply chain is not disrupted.

You have to assess the relationships the freight broker has with carriers. Ask about their network and the depth of relationships they have. With a wide carrier network, the freight broker will be able to ensure flexibility even when shipping during peak seasons. They will also be able to offer competitive pricing for you as well as efficient solutions for transportation. Check whether the pricing structure provided by the freight broker is clear and whether they include any applicable additional fees. This will allow you to budget for transportation accurately. Make sure to get multiple quotes so you can compare pricing. When discussing with the freight broker in initial selection stage, consider their communication skills along with responsiveness. They should be able to clear your concerns and be able to keep you informed through the entire shipping process. Ask how they mitigate risk and what sort of contingency plans they have such as backup carriers, alternative routes etc.