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3 factors to check before Set up with a Freight Broker

A professional freight broker knows the shipping industry by heart, uses the latest technology, and works with highly qualified carriers that may be hard to secure deals with. But to operate properly, every broker needs to be licensed. 

It’s always a good idea to check if the freight broker you want to have business with is legitimate. Let’s check out the main points of what you can do to ensure that the person you’re dealing with is honest with you.

  1. Check the Broker’s main documents Online 
All legally working freight brokers are listed and regulated by the Federal Motor Carrier Safety Administration (FMCSA). To check your future partner, go to the agency’s website to see whether the broker has a valid license. Make sure that it’s been renewed on time and the required surety bond hasn’t been canceled. Also look at additional information, such as whether the license has ever been revoked, and perhaps later reinstated - it may help you to make a decision.

  1. Does your broker have Insurance?
An insurance certificate is not required by law, but it is a must-have document for every freight broker. You should ask for a copy for your files and verify all the information on the certificate after getting it. Pay attention to whether the insurance company is the same as the one listed on the FMCSA website, along with all other information on the certificate. 

  1. Keep all Brokers Information in a database
Make a record of all the freight brokers your company works with, and create a work history for each one. Information about every profile isn't limited to documents verification, but can also include details about the broker’s overall approach to the work, if they’re meeting deadlines or have a good business ethic. This will give you a better image of each one and help you decide who to call again.

Freight fraud doesn't happen every day, but they can happen at any given time. So, take precautions and verify the information a broker provides for you. DPL will definitely pass all checks - give us a call and ask for more Set up details or ask for a Quick quote.

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