Why Use a Licensed Freight Broker of Transportation? | transportation

The Right Kind of Freight Broker SavesSomeone who controls the freight in any buy/sell transaction can benefit two ways by either earning money or saving money on the selecting of and payment for the transportation.By engaging the services of the right kind of Licensed Property Broker of Transportation, a Shipper or Buyer is outsourcing essential transportation management: Rate Survey, price negotiation, carrier selection, contract writing (by the load), and contract enforcement over the carrier. He is at the same time freeing up valuable time that can be used productively in other ways. Transportation management fees are contained in the freight cost per shipment, which are at or below the actual Average Market Rates.1) A SELLER can EARN MONEY on transportation by selecting and paying the transportation provider (Broker or carrier) himself and invoicing his customer for the freight by the “prepay and add” method. That is, to sell his wares with a delivery price as a line item in the sales contract labeled “Ship Best Way…$Amount”.Some sellers do this cost effectively for their customers (preferred) and many do not. It is legal and ethical to modestly mark up the transportation cost to arrive at your invoicing figure. Your earned Mark Up is for providing a legitimate service to your client by hiring a transportation provider to his benefit (he simply orders your product and waits for its arrival. Prepaid-Ship Best Way, F.O.B Destination).Supplying an accurate Bill Of Lading (BOL) to the consignor’s shipment loading location (Origin) is essential. Freight Brokers can draft a proper Bill of Lading for you for each shipment and fax or email it to the point of origin for use by the consignor (Shipper). The Bill of Lading is a very important document. This document spells out legal obligations to the carrier and all parties concerned: what is being transferred (Description), who the property is being transferred between (the Consignor and the Consignee), who is paying the freight charges to the carrier (“prepaid”, “collect”, or “third party”.) The Freight Broker is “third party” for all carriers supplied. The Bill of Lading documents that temporarily the shipment is in legal responsible custody of the Carrier while in transit. In addition, this documentation specifies at what point responsibility for freight damage claims against the carrier, if any, transfer from the consignor to the consignee. The notation will usually be either “F.O.B. Origin” or “F.O.B. Destination”. F.O.B. means “Free On Board” indicating that the consignor is free of responsibility for damage claims against the carrier at the point designated. The F.O.B. point is a negotiable item in the sale.2) A BUYER can SAVE MONEY (“a penny saved is a penny earned”) on transportation by selecting and paying the transportation provider (Broker or carrier) himself, electing not to have the seller do it for him. He buys a product, selects the transportation provider, who is also interested in the shipment from beginning to end. Not as simple, but he is earning money by saving money, he is providing this service on behalf of himself.This frees him to get the best deal on freight on his own, with his own negotiating power and the expertise of his Freight Broker. The company that provides the Transportation service can also be a valuable partner in gathering all the tedious load information that is prerequisite to finding the right carrier, with the right trailer, at the lowest possible price for the buyer.CARRIER PERFORMANCE ENHANCEMENT occurs when using the right kind of broker. A good broker is recognized by the carrier industry as an important credit approved large volume customer; as well as an industry partner who is able to affect his carrier reputation among his wholesale, freight broker, customer base, for reliability in the fulfillment of spot market hauling contracts. Every load is contracted in writing by the Broker to the Carrier. Through a main Internet Load board Carrier and Broker Performance Report postings and reviews, Brokers and Carriers have the ability to effect one another’s reputation publicly.This exertion of positive and negative pressure has a very good influence on both parties towards honoring each contract (load). That is why a good broker writes a detailed contract for every load tendered to a carrier. When you order Transportation service for a load either by phone or email, your broker gets busy with price negotiations, contract writing, and enforcement.The right kind of good and reliable transportation brokerage benefits shippers and carriers, enabling them to save precious time and money in today’s economy. Outsourcing to a Freight Broker who will professionally supervise your shipment and enforce your targeted transportation budget, will give you greater control of the best outcome.