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Picking the right Freight Brokerage Agent Network (FBAN) to join can be a challenging task for the Agent as there are many factors they must consider, such as reputation, commissions, payment terms, service quality, and communication. Here are some tips to help you find the best FBAN for your business:

Do your research: Before joining a FBAN, the Agent should do some online research to find out more about their background, experience, credentials, and customer reviews. The Agent can use websites like Truckstop or Better Business Bureau to compare different freight brokers and see their ratings, reviews, and services. You can also ask for recommendations from other businesses or industry contacts who have used freight brokerage services before.

Check their license and insurance: An FBAN must have a valid license from the Federal Motor Carrier Safety Administration (FMCSA) and a surety bond of at least $75,000 to operate legally in the US. You can verify their license and bond status on the FMCSA Safer Web. The Agent should also check their insurance coverage and make sure they have at a minimum 3PL Liability and Contingent Cargo insurance to protect you and your customer.

Compare their commission percentage and payment terms: FBAN’s retain a portion of the net profit on all shipments to cover the cost of the services they perform for the Agent. Often, the networks will have a minimum profit margin or an expectation on the net profits generated, the Agent should make sure their book of freight will accommodate those expectations. Some FBAN’s charge for joining, sort of a “franchise fee” and some may require you to build up an escrow account to deal with shortages, neither of which is bad, just something that the Agent should consider when making their decision. Ask how the FBAN handles negative fee shipments as these may come up and the Agent should know how they will be treated.

Making sure the services the FBAN is going to perform are the services the Agent needs accomplished. These services should include approving carriers, approving customers’ credit lines, invoicing your customer, and performing collections efforts. The FBAN should also provide the Agent with a solid operating platform for the type of freight being handled for the Agent’s customers.

The Agent should understand what services their customers require and what services they are comfortable moving freight in. Once the Agent has that, they should gather a listing of the different modes of transportation options the FBAN offers. This could include OTR, Intermodal, LTL, Air Freight, Final Mile, International NVOCC and/or OFF, Small Package/Parcel, Customs Brokerage, Carload. The FBAN does not need to do all these things, it only needs to do the ones the potential Agent and their customers need.
Evaluate their service quality and communication: A good FBAN should provide the Agent with high-quality service and communication. They should be able to offer the Agent an environment where they have all the tools they need to succeed, and the support of the agent network where needed.

A good FBAN will make the Agent feel like a customer. The FBAN will value the relationship in the same manner the Agent values their relationship with their customers. If the Agent feels like they are simply a revenue source for the FBAN, the Agent should steer clear of that relationship and find one that is a better fit.

In the freight transportation ecosystem, multiple roles converge to facilitate the successful move-ment of goods, with the freight broker playing a pivotal role. Without these vital intermediaries, the industry would eventually stall. Nonetheless, an underhanded practice termed ‘double brokerage’ has emerged as a serious concern, underscoring the importance of vigilance and proactive measures.  Continue to full article for free and no sign up.