Freight Forwarders

Freight Tracking

Freight tracking is a major boon to customers of all transport and logistics and freight forwarders companies who need to know the status of a package or cargo they have shipped. So let’s look at what is available to the individual or company who needs to keep track of a shipment and the benefits and drawbacks of the different freight tracking systems that are available.

Most major freight forwarding companies provide their own freight tracking service which can easily be accessed via the Internet. On the smaller scale of things, companies such as UPS, DHL and FedEx all provide their customers with the ability to track their packages anywhere in the world and be informed of delivery times and confirmation or receipt of the package.

On a larger scale, the big freight forwarding companies also provide their clients with the ability to track the progress of shipments of all sizes, from single pallets right up to entire container loads. The service is generally free to the client and a valuable tool for keeping tabs on where any shipment might be at any given time.

But what about smaller concerns which do not have their own tracking service available for their clients. In many cases, smaller companies will avoid using the bigger freight forwarders in order to cut costs and this is often passed on in the lack of real-time tracking ability. There are, however solutions to this in the form of online freight tracking software. Certain software packages can be either purchased outright or leased on a monthly fee basis for the period that it is required. The price of such software varies according to its level of sophistication, real-time tracking functionality and available user definable admin functions providing the user with greater or lesser flexibility.

It can be seen that there is a trade off in the form of costs and balancing the pros and cons of either option. On the one hand, making use of a larger company and paying the extra costs brings with it the additional benefit of having free real time freight tracking ability. On the other, a company that makes regular and frequent shipments may actually recoup the costs of purchasing their own computer freight tracking software by saving on using smaller freight forwarding companies to handle their shipments.

To the individual who may only be sending an isolated package occasionally, the best option would be to use one of the larger shipment companies such as UPS, DHL etc who provide a free freight tracking service as there would be little to be gained from purchasing freight tracking software that would in the long run see little use.

Ultimately, the right choice must be made by finding the correct balance between the long term costs of using certain services and the convenience of a free, real time freight tracking service, or of the viability cost wise of purchasing your own software to do the job for you.

Freight Forwarders

Freight Brokers

It has often been asked here at Freight Forwarders, what exactly are freight brokers and what role they play in the industry as a whole.

Freight brokers are basically the go betweens acting for the persons requiring goods to be transported and the freight forwarders and transportation companies themselves. A freight broker could also be known as that which is legally termed a Property Broker. It is this term that has been established in the US by the FMCSA (Federal Motor Carrier Safety Administration). The FMCSA is a division of the Department of Transportation in the US.

A freight broker or property broker is therefore a term which is used to describe a licensed individual, or a corporation acting to assist in facilitating the successful transportation of goods undertaken by a freight shipper or authorized motor carrier and the customer.

Brokers are not, by law required to carry cargo or liability insurance. However, freight brokers are required to hold several legal documents which include:

  • A Broker’s Authority
  • Surety Bond or Trust Fund
  • Processing Agent

A Broker’s Authority is obtained for a $300 fee (currently) through the FMCSA upon filing out the form OP-1 and filing for authority.

A Surety Bond or Trust Fund is obtained from either a bank or a bonding company. The form that is required to be filed with this is known as the BMC-84 or BMC-85. Each brokerage company or individual entity is required to prove they are able to pay the various truck lines, airlines, railroads, or any other entity being used by the broker. Before a bond is issued, the individual’s credit and/or financial capacity is thoroughly investigated. This is because for some reason if the broker fails to pay the freight forwarder or transport company, the bonding company must instead pay.For this reason the bonding company is extremely cautious about who they decide to insure.

The Processing Agent is obtained by filling out form BOC-3 and costs $50.

A freight broker does not require a lawyer or other professional entity in order to file for a motor carrier or property broker authority. As for certification, there is actually only one level of broker, which is the Property Broker, or more commonly called the Freight Broker. The FMCSA does not recognize any other title.

That concludes this article, which we trust you found informative and useful.

Freight Forwarders

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