Shipping products and materials across the country or globe can be highly complex, and there are many businesses that lack the infrastructure and expertise to efficiently perform this task. To this end, freight brokers can help companies meet these needs, and this makes it a highly lucrative career field. However, if this is a relatively new career for you to consider, you may have a couple of questions that you want answered before you decide to pursue this option.
How Can A Freight Broker Help A Business Meet Its Goals?
In order to ship materials across a great distance, you will likely need the services of several different transportation services. For example, it may be necessary for part of the journey to be made by train and the rest of it to take place via air travel. Considering that this requires coordinating with several different transportation companies, managing these relationships and logistical challenges is the specialty of a freight broker.
These individuals will work with these shipping companies to determine the most cost effective and fastest option for shipping the items. Also, these individuals will coordinate with these companies throughout the shipping process to ensure that delays and other issues do not cause the entire shipping plan to fall apart.
Are There Insurance Requirements For This Profession?
Due to the tremendous value of the items that can be shipped, it is important for these professionals to be properly protected against the threat of damage. Regardless of the method used, it is always possible for shipped items to suffer damage while they are being transported. To avoid being personally liable for these expenses, you will need to be properly insured and bonded. In addition to being sound legal advice, having this type of insurance is also a legal requirement in many states.
When you are choosing an insurance and bonding policy, you will need to consider whether or not there are requirements governing these insurance levels in your area. If there are, you will need to make sure that you meet these requirements. In instances where there are no legal requirements, you should enter into an at-call policy with an insurance and bonding company. These policies allow the freight broker to purchase insurance policies on a per shipment basis, and this can allow them to adjust the amount of coverage that they have from accidental damages.
Pursuing a career as a freight broker is something that requires serious and careful thought. While this can be a highly lucrative career to pursue, it is important to understand these two commonly asked question about this profession before deciding whether this path is right for you.