Freight brokers are an essential component of the logistics industry. These middlemen help businesses find the products they need whether delivered by air, water or land. In addition to having contingent cargo insurance, here are some things to know about freight brokers.
A contingent cargo insurance plan helps fill in carrier policy gaps, according to ATM. It is helpful when the carrier’s insurance policy fails to satisfy a claim leaving the freight broker holding the bag. This insurance policy steps in to handle those denied claims.
Anyone operating as a freight broker must have a license through the Federal Motor Carrier Safety Administration. This license gives you the ability to operate and make deals. While the job requires a license, it does not require more than a high school education and some on-the-job training.
If new to the business, the most important thing is likely procuring clients. There are lots of marketing techniques to reach customers such as cold calling. Once you show your ability to deliver goods on time and have clear communication with clients, they are more likely to be repeat customers.
Keep in mind that some shippers will only work with freight brokers who have contingent cargo insurance. They want to work with someone they can trust and count on who limits their liability as well.