Questions to Consider when Choosing a Freight Broker:

Behind every successful movement of cargo there is Freight broker. It is an individual or company which acts like barrier between company that needs shipping services and an authorized motor carrier. There are some tips for selecting right broker for your needs given by Chip Smith, president and CEO of Twin Modal.

  1. Make sure the broker is licensed:
Before selecting person or a company as a Freight broker make sure that they have proper license and authority.  They should have federal broker license issued by the federal property broker license by the federal motor carrier safety administration.
  1. Look for multiple modes:
Most brokers provide not only truckload motor carrier service but also offer additional service options, rail intermodal, air freight, warehousing, LTL, flatbeds, vans, reefers, padded van, shipping and logistics management services. Brokers with multiple modal options can reduce risks of fleet management.
  1. Investigate the broker’s carrier selection process:
A written contract is must between carrier and you. Verify carriers operating authority, safety rating, and insurance.
  1. Evaluate the carrier management process.
 To avoid unwanted risks and problems, brokers must constantly communicate with carriers. Look for brokers who communicate in writing while instructing carriers as phone instructions are not enough. Ask your broker about the management of their loading and unloading good.
  1. Run a credit check:
Freight brokers should be financially sound and able to pay their carriers. Check out how perfect they are in paying vendors. Stay away from brokers with financial issues and legal judgements against them. Involve yourself with a successful, experienced broker.
  1. Be sure the broker carries adequate insurance:
Many brokers have contingent cargo insurance to pay damage claims or loss in shipment if the carrier and its insurance company refuse to pay. Contingent cargo is completely second level of protection. Look for brokers who also have liability insurance along with ‘errors and omissions’ insurance.
  1. Look for enrollment in integrity programs:
Licensed property brokers who belong to the industry of trade group Transportation Intermediaries Association (TIA) are required because they follow strict code of ethics while dealing with shippers and carriers.
  1. Get it in writing:
Have a written contract with your broker that explains the terms and conditions of your agreement to avoid misunderstandings and financial issues.



Alpha Freight Chain Pvt Ltd is a unit of Jayem Logistics,  Business started in 2007 to help Enterprises for Government Compliance regarding to Import / Export Transactions. It is specialized in Special Economic Zone (SEZ), Export Oriented Units (EOU), Free Trade Warehousing Zone (FTWH), etc. The expertise also extends to Bonded Warehouses, Related Parties Transactions, High Sea Sales, Drawback, Refunds, etc. Alpha is also a government approved Customs Broker. A  Customs Bond is a contract which is used for guaranteeing that a specific obligation will be fulfilled between customs and an importer for any given import / export transaction. The main purpose of a customs bond is to guarantee the payment of import duties and taxes. For this we do Preparation of Various Bonds in prescribed format, Provisional Duty Bond, Double Duty Bond, Undertaking Bond, Transit Bond, WH Bond, Execution of Bonds with customs department, Monitoring of Bonds executed and Cancellation of Bonds upon expiry with customs department.
Request a Quote or Call Us (+91 80 412 63746 ) for freight brokerage today.

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