How to check a freight broker is legitimate

Business relations and negotiations are based on mutual trust between parties. When you decide to enter an industry that you do not have much knowledge about it, So it is a good idea to ask help from service providers of that industry. Here we want to explain how we can find a legitimate and reliable Freight broker. Most of the time finding a legitimate freight broker can be a difficult task. It is great that we have business parties with high trust so that we can do our business without doubt.

Every industry has its own criminals and frauds and transportation industry is not different. Some companies report about the thefts of their cargo and loss of their money and unfortunately this case has been increased. So it is very important that companies have a good understanding and knowledge about the scams in this industry.

Most of us may think that the best way for doing the business without worrying and doubt is to work with the partners that we had worked for some years and we are sure about their truthfulness. But most of the times it is not a bad thought to find new freight brokers and question are that how we can be sure that this new freight brokers are legitimate.

There are 2 questions:

Why we should use a freight broker services?

  • A freight broker that works professionally is familiar with all the aspects of this industry.
  • It can save your time and money by finding best shipping options.
  • A professional freight brokers knows the regulations needed for this business.
  • They can find best solutions for your shipping needs.

How we can be sure about freight broker’s legitimacy?

Freight brokers need license for operating. Before starting to work with a freight broker you should check its valid license. Nowadays internet can be best tool for checking it.
In order to be sure about the legitimacy of a freight broker you can ask some questions:

Is the freight broker registered legally?
Registration in this industry is mandatory if a broker or carriers has not been registered but engaged in this industry so any time it may become subject to law enforcement action

Has the Freight broker an insurance?
Having insurance is mandatory for every freight broker so before proceeding to start working with broker ask a copy of it. It is better to contact the insurance company and ask about it.

Is the freight broker bonded?
Freight brokers should have surety bond in order to be licensed and operate legally. So always be sure about it before starting your cooperation.

You can check the certificate of them in the special websites that can be reached in every country.

Pay attention that freight frauds does not happen every day but it does happen. So be sure about all the questions mentioned above before starting to work with them.

Freight Scammers uses different ways to do their illegal business. They use altered documents of legal brokers and carriers to convince their victims. As soon as they reached to their goal they are no longer be reached and the victims will not be able to find them.

Scammers never post freight but they try to reach the posted freight and start their scamming from there. They do this by offering very low rates that is normally lower than the actual rate so negotiators and carries should be careful to these kinds of offers.

As a result of this article we can say that cargo owners, carriers and brokers are in fault if they do not verify the legitimacy of the other side. Not paying attention to these warnings can be leaded to fraud and scamming of freight industry. Some companies have their own systems and procedures for avoiding these scams.

Wtleads recommendation to any one that wants to use the services of freight brokers is that take all necessary precautions, and verify all the information and documents provided by brokers carefully so that you can avoid any possible scam.