Choosing or finding a freight broker or transport company is one of the most critical decisions you will make in your business.
Why? Because if your orders are not delivered on time or in one piece or without damage, you are likely to lose a customer. Like it or not, shipping charges can make or break your business and they are an extension of your company.
The trucking and transportation industry is huge. On a regular day in the United States, about 43 million tonnes of goods, worth about $ 29 billion, moved almost 12 billion tons to the nations interconnected transport network. These domestic numbers are according to the Bureau of Transportation Statistics and give you a simple snapshot of the scope or importance of this sector. Its cheating how important this is when it comes to moving our goods and it can literally destroy a nation if its shut down for a long time.
First, we can define freight rates, freight brokers and some other terms used in the shipping industry.
Truckload: Here the amount of load typically fills the truck. The goods owner pays the cost of a full load to go from point A to point B.
Sender: Sender, person or company (usually the seller) who delivers a shipment to a carrier to transport it to a recipient (usually the buyer) specified in the shipping documents. The ownership (title) of the goods remains with the sender until the recipient pays for them in full.
Recipient: The person to which goods are delivered to or recipient.
TDG: Transport of dangerous goods. A regulation used to ensure the safe delivery and identification of dangerous goods.
WHMIS: Workplace Hazardous Substances Information System (WHMIS) is Canadas national health communication standard. The main components of the system are the warning of containers of WHMIS controlled products, the provision of MSDSs and training programs for workers.
Intermodal: Is your shipment involved in more than one mode or mode of transport during the journey from origin to destination. Your shipment may begin on a truck, be loaded by rail and eventually end up in a sea operator or a ship.
Air freight: Transport paid for goods transported by aircraft or freight.
Freight Broker: A freight broker is a person or company that acts as a connection between another person or a company that needs freight services and an authorized motor car.
Customs Broker: Assist importers and exporters who meet federal import and export requirements. Brokers submit the necessary information and appropriate payments to the supervisory authorities for their customers and charge them a fee for this service.
LTL: Less than Truckload.
FOB point: Free aboard shipping on board. This term determines when legal merchandise passes from sender to buyer. This RFQPro provides a detailed explanation of the importance of FOB points and how they work.
Weve compiled some tips we hope to help you make decisions about choosing the right shipping shipment for your organization.
Request routing or coverage. Smaller companies interline or join other networks.
Ask about the size of the fleet and the number of employees. Do they own their own trucks, how big is their fleet and do the subcontractors (independent). This may not matter to you, but an actual employee of the company versus and independent entrepreneur is the point we raise.
How long have they been on business?
Request a copy of their game response plan.
Emergency Action Plan.
Do they have a security coordinator on staff. How do they handle training. Get copies of all Dangerous Goods Handling Certificates and Proof of Driver Certificate. If you send toilet paper, it may not be on your priority list, but if you move fuel, chemicals or other products that can harm the environment, much of the above.
Security record - Test of an accident investigation carried out in his organization.
Ask for their claim.
Copy of their liability insurance. You may wish to request anywhere between $ 5 and $ 10 million depending on the goods they ship on your behalf.
Workers compensation coverage.
These are just some of the areas you may want to target when evaluating and selecting your service provider.