Nov 07, 2017 • Brokers

Broker Carrier Agreement

Broker Carrier Agreement

A broker carrier agreement is required in order to have a freight contract that will ensure a motor carrier hauls truck freight for the freight broker.

Broker Carrier Agreement

A freight broker may negotiate a rate with a carrier before agreeing to freight contract terms and signing a Broker Carrier Agreement. Let’s say a freight broker posts a load on a load board that needs to be picked up from Dallas and delivered to Kansas City.

The freight broker may offer to pay the carrier $1,000 but the carrier wants to negotiate a higher rate. Eventually, the two parties agree that $1,300 is a fair rate and they wish to proceed. This is where a Broker Carrier Agreement comes in.

A Broker Carrier Agreement will include things like:

The Broker and Carrier’s Information (including MC#)
Agreement Date
Days to Pay
Procedures for Invoicing
Liability and Insurance

Broker Carrier Agreement Example

Carriers want to know when they will be paid, what sort of liability they might be required to have any other stipulations of the truck load before considering to haul it. Without the broker carrier agreement, truck freight cannot be booked and subsequently hauled.

Find Freight Carriers on Truckloads Load Board

Brokers can’t come to an agreement without having an interested carrier in the mix. So how do freight brokers find carriers? This is where tools such as load boards come in to play.

Truckloads free broker load board is one of those with unmatched technology. It provides you with access to over 100,000 verified freight carriers who are qualified to haul your freight. It’s easy to post truck loads via CSV or TMS and you can keep tabs to see which freight carriers have viewed your load and how many times.

Truckloads also has unique features such as Truck Search which allows you to search for available trucks in a specific location. View a carrier’s Safer Watch Rating to confirm if they are qualified and if you’re interested, contact the freight carrier directly. Now you can move more truck freight than ever before!

[button text=”Find Motor Carriers Now” href=”https://truckerpath.com/truckloads/broker-signup/?utm_source=blog&utm_medium=brokercarrieragreement” width=”250px”]

TagsFreight Broker

Freight Broker Bond [p] Want a freight broker license? You'll need a freight broker bond of $75,000 first.[/p] [h2]Freight Broker Bond[/h2] [p]The freight broker bond is one of the lesser known parts of being a freight broker but it’s quite simple, and once you get a better understanding of it, you should feel as comfortable with your freight broker bond as you do with getting car insurance.[/p] [h2]What is a Freight Broker Bond?[/h2] [p]A freight broker bond is a form of a surety bond, which is like an insurance policy for a contract, though it doesn't take the place of liability insurance. It is a legal commitment made by one party to another to pay a certain dollar amount if the terms of a contract are not met. [/p] [p]In this instance, the bond protects a customer from losses if you don’t come through as well as giving carriers the peace of mind knowing they will be paid in a timely manner.[/p] [h2]BMC-84[/h2] [p] The BMC-84 is essential to your freight brokerage as it reassures carriers and companies that you have the backing to broker deals. BMC-84 is the bond for $75,000 and is required by law. It is necessary to cover payouts of possible claims (damages, broker negligence, failure to pay, etc). [/p] [h2]Applying for a Freight Broker Bond[/h2] [p]A freight broker bond can be acquired from any insurance agency such as Liberty Mutual, The Hartford, among hundreds of others. Alternatively, you can search for specific firms in your state who specialize in freight broker bonds. [/p] [p]When you're ready to select your agent of choice they will all require the same information to process your BMC-84: exact business name as it appears on the business license, the exact dollar amount for bond, business address, and all business/personal financial records. [/p] [p]You must pay a percentage of the freight broker bond up front before the agency will process it. Usually, this annual premium will be between $900-$2,000 depending on your credit. It can be paid for with a credit card or check in most instances and takes about 24 hours to process.[/p] [h2]Can I Get a Freight Broker Bond With Bad Credit?[/h2] [p]Yes, you can still get a bond. If you have bad credit it’s not impossible, but it will increase your cost to secure a bond which can run upwards of $2,000. Keep in mind that surety bonds do not affect your credit score so it wouldn't hurt to search around though it's best to start at the bigger agencies first. [/p] [p]The larger the firm the more freight broker bond providers they work with which increases your odds of being approved. Just remember the premium on the freight broker bond is a percentage of the bond itself, so if your credit is bad the premium will be higher. Even though you will have to pay more up front it allows you to open your business and provides an umbrella in case of any freight claims.[/p] [h2]Freight Broker Bonds and Claims[/h2] [p]Trucking is dangerous and things are bound to go wrong on the road from time to time. Customers will understand that. However, when things do go wrong, someone needs to be held responsible and pay the damages. Similar to a car accident, there will be a resolution and one party must pay out to the other.[/p] [p] This is why it is required for companies to maintain a $75,000 bond. If you're found responsible and must pay out on the claim, your bond will act as a line of credit to do so. Before being issued your bond you must sign a legal document to repay in full in the case of such a payout. [/p] [h2]Bonding Agency [/h2] [p]When selecting your bonding agency to try to use one who is also a Managing General Underwriter (MGU) bonding agency. MGU Agencies can and will help you through each stage of a claim. It is recommended to do everything possible to be proactive when issues arise on loads to prevent claims from being filed. Just like car insurance the more accidents, you have on your record the harder it is to get insured. Only here not being able to get a bond can cause you to go out of business as they are required to operate.[/p] [p]Remember DO NOT submit your proof of insurance directly to the FMCSA. The FMCSA requires that your insurance company submit the form and insurance certificate on your behalf.[/p] [h2] I Have a Freight Broker Bond, Now What? [/h2] [p] Now that you've covered your freight brokerage from potential claims with your freight broker bond, you can either continue to start your freight brokerage company or if you're ready, explore load boards to help you post loads that qualified carriers can view.[/p] [button-white href="https://truckerpath.com/blog/how-to-become-a-freight-broker/"]How to Become a Freight Broker[/button-white] [p]Freight brokers who use Truckloads have the ability to connect with over 100,000 qualified carriers ready to haul their freight. You can even track your loads to verify a carrier's location and ensure that your customers delivery is going according to plan. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=brokerbonds&utm_campaign=aug2"]Get Started With Truckloads Now[/button-green]

Jul 26, 2017 • Brokers

Motor Freight [h2] Motor Freight [/h2] [p] Motor freight carriers haul truckloads for freight brokers and are responsible for transporting over 70 percent of all freight moved in America! [/p] [h2] What is Motor Freight? [/h2] [p] Motor freight is a variety of <a href="https://truckerpath.com/blog/types-of-truck-freight/">truck freight</a> that can range from manufactured, commercial or residential materials that otherwise cannot be shipped by carriers such as UPS or FedEx delivery trucks due to the size, volume and other factors pertaining to the freight.[/p] [p] Just take a moment and look around the room you're in. You'll probably notice different types of furniture, electronics, and appliances - so where did they come from? Sure you bought them at the store but the things you buy are delivered by truck freight. [/p] [h2] Motor Freight Trucking [/h2] [p] When freight is ready to be picked up from the warehouse or distribution center and dropped off to the customer or store, motor freight trucking is needed. See <a href="https://truckerpath.com/blog/trucking-industry-trends/">truck drivers covered 450 billion miles</a> in 2016 traveling across the country and back (and back again and again) delivering the freight that is in demand by the consumers. Trucking is the lynchpin in supply chain logistics and chances are if you bought it, a trucker brought it. [/p] [p] Meanwhile, motor <a href="https://truckerpath.com/blog/what-is-a-freight-broker/">freight brokers</a> help facilitate the transporting of goods by connecting their shipper clients with motor carriers. Brokers will work with shippers to finalize a <a href="https://truckerpath.com/blog/truck-freight-quote/"> truck freight quote</a> and then the subsequent freight rate will be paid to the carrier after the truck freight is delivered. [/p] [h2] Truck Freight Carriers [/h2] [p] If you're a freight broker, you can find motor freight carriers on load boards like <strong>Truckloads</strong> free broker load board. Truckloads has unmatched technology, providing brokers with <strong>access to over 100,000 verified motor freight carriers</strong> who are qualified and ready to haul your freight. It's easy to post truck loads via CSV or TMS and you can keep tabs to see which carriers have viewed your load and how many times. [/p] [p] Truckloads also has unique features such as <strong>Truck Search</strong> which allows brokers to search for available trucks in a specific location. View a carrier's <em>Safer Watch Rating</em> to confirm if they are qualified and if you're interested, contact the freight carrier directly. Now you can move more truck freight than ever before! [/p] [button text="Find Motor Carriers Now" href="https://truckerpath.com/truckloads/broker-signup/?utm_source=blog&utm_medium=motorfreight_oct25" width="250px"] [video id="94nytqkGWRI"] [h2] Truck Freight Companies [/h2] [p] There are thousands of truck freight companies but they aren't all large carriers, in fact, <a href="https://truckerpath.com/blog/how-to-start-a-trucking-company/">90 percent of trucking companies</a> operate as small fleets with less than six trucks. These smaller fleets are typically representative of the types of carriers you'll find on Truckloads load board.[/p] [p] Some of the largest motor freight companies are the most well-known and you might recognize the names from their logos plastered on the side of the trailers rolling down highways across America and Canada.[/p] [p] The largest trucking companies are (in no order):[/p] [ul] [li] Saia [/li] [li]YRC[/li] [li]J.B. Hunt[/li] [li]Swift Transportation [/li] [li]Schneider[/li] [li]Werner[/li] [li]C.R. England [/li] [li]Old Dominion [/li] [li]Estes Express Lines[/li] [li]Prime [/li] [/ul]

Oct 25, 2017 • Brokers

Trailer Door Locks [h2] Trailer Door Locks [/h2] [p] There isn’t a single trailer door lock that is universally the absolute best. Many truck drivers have hasps and door hardware that vary in size and functionality; therefore, not every padlock will fit every trailer door. [/p] [p]However, there are some things you can keep in mind to navigate the winding roads of finding the best trailer door lock to secure your cargo.[/p] [h2] Type of Locks [/h2] [p] Most truck door locks must be padlocks based on how the trailer door secures. Often a trailer door will use hardware with a cam action side-bar that fastens into place with a hasp. In order to lock the doors, a padlock must be placed on the hasp. [/p] [p]Padlocks come with many different profiles, but they have some essential features that are consistent throughout the wide range of products. Though you might know your <a href="https://truckerpath.com/blog/trucker-terms/">trucker terms</a>, here are some other definitions you should be aware of. [/p] [ul] [li]<strong>Lock Body - </strong> The thick part of the lock that houses the internal components and lock core.[/li] [li]<strong>Shackle - </strong> A piece of metal that remains immobilized when the padlock is locked and moves to allow the lock to be removed when the padlock is open.[/li] [li]<strong>Locking Pawl -</strong> The device keeping the shackle stationary when the padlock is locked and retracts to allow the shackle to move when the padlock is open.[/li] [/ul] [h2]Key Features of a Trailer Door Lock[/h2] [p]<strong>A Keyway - </strong> Combination padlocks and other such devices that do not use a key are not made to the same security standards as the best keyed-locks on the market. You also run the risk of someone overhearing you mention the combination, seeing you input it, decoding it, etc.[/p] [p]<strong>Shackle Protection - </strong> A shackle is going to be thinner than the lock body, so you need your shackle to be as covered as possible (which provides greater thickness). You can do this with a padlock that has a puck lock profile or a shackle shroud (both of these terms are used to describe the different ways the thickness of the lock body can extend to cover the shackle).[/p] [p]<strong>Sturdy Internal Components - </strong> Since the padlock will be outside, exposed to the elements, debris, and sustain stress from the vehicle's movement, the internal components of the lock are at risk of being damaged to the point where the proper key will not open the padlock.[/p] [p]<strong>Strong Metal - </strong> This should be used on the lock body as well as the shackle. Hardened steel can vary in quality, so it is best to get some sort of alloy steel. Those made with Boron Carbide are some of the best on the market. This helps to ward off cutting and prying attacks.[/p] [p]<strong>Picking Resistance - </strong> Though most criminals do not pick locks, you do not want someone with little to no training opening your lock quickly and covertly (lockpicking resistance will also equate to bump key resistance). [/p] [p]<strong>Drill Protection - </strong> Even with a strong padlock with a protected shackle, most lock cores are brass and can be drilled out. Whether it is an anti-drill plate that uses rotating hardened steel or anti-drill pins that deflect drill bits at key drill points, you should have some form of drill protection.[/p] [p]<strong>Ball Bearings - </strong> The locking pawls for your padlock must be ball bearings. Other forms of locking pawls can be shimmed, which is a simple bypass most people can perform untrained with simple household items.[/p] [h2] Top Trailer Door Lock Choices [/h2] [p] As we previously mentioned, there is no one best lock for every use. But as long as you purchase a product with at least most of the specifications listed above, you will be providing your cargo with more protection than many others who are just buying what they can get their hands on at the hardware store.[/p] [p] Depending on your budget, what you are hauling, and <a href="https://truckerpath.com/blog/best-truck-stops/">the types of truck stop</a> you will be parking your load, you might need different levels of security. Here are some recommendations that cover a variety of potential needs: [/p] [p]<strong>1. Mul-T-lock MT5+ TR 100 “Hockey Puck” </strong>[/p] [p] This product is a great example of the puck style of a padlock. It is similar to products from companies such as Master Lock and Trimax, but with the additional features that Mul-T-Lock provides in their high-security locks. This lock has a cost that makes it accessible to most, though some more frugal buyers may faint from sticker shock. Just know for that price you are getting a very hardy lock that almost no one is going to pick the lock open or remove it by force.[/p] [p]<strong>2. Abloy PL 342T </strong>[/p] [p]Sometimes referred to as the Abloy model 342, this is a tremendous lock, both in terms of size and security. This Abloy padlock uses a PROTEC2 core, which has never been picked open to this day. With an extremely thick shrouded shackle (10mm in diameter) criminals will have a hard time prying it open too.[/p] [p]The main issues you are going to run into with this lock is not having a hasp with the correct dimensions to accommodate such a thick shackle. It is also the most expensive padlock that I am recommending (though certainly not the most expensive padlock you could buy).[/p] [p]<strong>3. Stanley Hardened Steel Padlock</strong>[/p] [p]The lowest security lock I am willing to recommend for securing your cargo is this Stanley Padlock. It has a shrouded shackle and drill protection, which come standard. I would recommend that you replace the lock core with something more secure, but in terms of price for the product you get, this is the best value for such a small sum.[/p] [p]The Stanley Hardened Steel Padlock is a good starter lock. If you have invested in other things and need a bit of time to recoup adequate funds, the standard Stanley is the lowest security placeholder you should settle for. For the price, you cannot buy much better.[/p] [h2]Price Considerations[/h2] [p]Price matters because money most truck drivers have to work within a budget. Don't spend all of your budget for your truck’s security on the trailer door lock. With that said, you shouldn't both with a lock that is less than $100. If money's no object, you can <a href="https://unitedlocksmith.net/blog/10-best-padlocks-of-all-time">get the best padlock available to you</a>. For everyone else, focus on getting as many of key features as you can. And if you can’t afford much now, start with a Stanley padlock and work your way up to the lock core replacement.[/p] [p] <strong>About the Author</strong> [/p] [p]Ralph Goodman is a professional writer and the resident expert on locks and security over at <a href="https://www.google.com/url?hl=en&q=https://unitedlocksmith.net/blog&source=gmail&ust=1510851240149000&usg=AFQjCNFCuwh1U-3WlNpEde3Klm2dTkTMSQ">the Lock Blog</a>. The Lock Blog is a great resource to learn about keys, locks and safety. They offer tips, advice and how-tos for consumers, locksmiths, and security professionals.[/p]

Nov 15, 2017 • Carriers