If you've been in the shipping business for any length of time, you know brokered loads are advantageous. They're cost-effective, responsive and offer a variety of vehicle options, among other things. The brokers that connect shippers and carriers are a vital link in the process. Be aware, however, that not all brokers are legitimate, or honest. Ask these three vital questions of any broker before you agree to do business with them.
Is the Broker Registered?
Any motor carrier, freight forwarder, broker, or other commercial entity that engages in interstate commerce has to be registered. The program, called the Unified Carrier Registration Program, or UCR, is a federally mandated program that is handled at the state level. Fees are collected by states based upon the number of fleet vehicles maintained. It is imperative that you verify that your broker is currently registered and in good standing, which can be done at the UCR website. Failure to register, and actively engaging in interstate commerce, can lead to legal problems for you and the broker.
Is the Broker Insured? …show more content…
This insurance generally offers coverage such as contingent broker auto liability, contingent broker cargo liability, general liability and property insurance. Ask for a copy of this certificate for your records, and follow up by searching for the company on the Federal Motor Carrier Safety Administration (FMCA) website. There, you can verify that the insurance is the same as the one listed, as well as the effective dates and status of the policy. If you're still unsure, contact the insurance company to verify the policies are valid and still in
Is the Broker Registered?
Any motor carrier, freight forwarder, broker, or other commercial entity that engages in interstate commerce has to be registered. The program, called the Unified Carrier Registration Program, or UCR, is a federally mandated program that is handled at the state level. Fees are collected by states based upon the number of fleet vehicles maintained. It is imperative that you verify that your broker is currently registered and in good standing, which can be done at the UCR website. Failure to register, and actively engaging in interstate commerce, can lead to legal problems for you and the broker.
Is the Broker Insured? …show more content…
This insurance generally offers coverage such as contingent broker auto liability, contingent broker cargo liability, general liability and property insurance. Ask for a copy of this certificate for your records, and follow up by searching for the company on the Federal Motor Carrier Safety Administration (FMCA) website. There, you can verify that the insurance is the same as the one listed, as well as the effective dates and status of the policy. If you're still unsure, contact the insurance company to verify the policies are valid and still in