Freight brokers are a necessary part of the logistics industry. However, they operate differently than other types of businesses in the industry. Before you start a logistics company you need to know what is a freight broker.
As referenced on www.atminsurance.com, a freight broker needs both general liability and commercial auto policy. Property damage and injuries are covered under general liability when they occur on the business premises. Any vehicles owned by the company need a commercial auto policy to cover bodily injuries and property damage.
The company helps shippers move freight by brokering deals. They essentially are the middlemen between the shipper and the carrier. Loads are arranged for transportation and then tracked via the freight carrier. Shippers rely on freight brokers to ensure their products make it to their end destination.
A freight broker relies on a broker load board to find reliable carriers by posting available jobs. Salaries vary depending on location and the broker’s ability to find reliable carriers for the best prices.
Knowing what is a freight broker can help those interested in moving into this career decide if it is the best move. Shippers and carriers should also understand how to work with a freight broker to move their business along.