This industry is
so huge and diverse requires a wide
range of participants to thrive. Some of
these participants titles may be a bit
confusing, and some of their
responsibilities may overlap. But to
keep things as clear and simple as
possible, let's look at who the key
players are and what they do.
-
Freight
Broker: A freight broker is the
middleman who connects shippers and
carriers.
-
Shipper:
A shipper is an individual or
business that has products or goods
to transport.
-
Motor
Carrier: A motor carrier is a
company that provides truck
transportation. There are two types
of motor carriers: private (a
company that provides truck
transportation of its own cargo) and
for hire (a company that is paid to
provide truck transportation of
cargo belonging to others).
-
Freight
Forwarder: Often confused with
freight brokers, freight forwarders
are significantly different.
Forwarders typically take possession
of the goods, consolidate numerous
smaller shipments into one large
shipment, then arrange for transport
of that larger shipment using
various shipping methods, including
land, air and water carriers.
-
Import-Export Broker: These
people are facilitators for
importers and exporters.
Import-export brokers interface with
U.S. Customs, other government
agencies, international carriers,
and other companies and
organizations that are involved in
international freight
transportation.
-
Agricultural Truck Broker: Generally small and operating in one
area of the country, unregulated
agricultural truck brokers arrange
motor carrier service for exempt
agricultural products.
-
Shipper's
Associations: Shipper's
associations are exempt, nonprofit,
cooperative organizations formed by
shippers to reduce transportation
costs by pooling shipments.
Shipper's associations operate in a
manner very similar to that of
freight forwarders, but their
service is limited to their members
and is not available to the general
public.
___________________________
As A Broker: You
will have to get your own Authority,
Bond , Process Agent and Insurance.
You will do your own Billing and
Collections. You as a Broker carry
100% of the Liability is something goes
wrong with the load.
As An Agent:
You "do not" have to carry any
Authority, Bond, Process Agent or
Insurance. You will work under the
Broker. You normally have nothing
to do with Billing and Collections -
unless it is in the Broker-Agent
Agreement. When it comes to
the liability of the load, you are
usually not responsible unless you sign
in the Broker-Agent Agreement that makes
you so. So read those contracts
before signing.
This is one thing we
go over in the training course - what to
watch out for!