Because We Care
Track Your Shipment Add Tracking Number
How We Make Your Life Easier
How Red Lab Logistics is Different
It is true that freight brokers earn money by finding the most suitable match between a shipper and a carrier. While you as a shipper need to pay a fee to use their services, the end price for moving your loads often is lower than if you had arranged the transportation yourself. The reason why brokers can find the best price for moving your goods is the big database of carriers that they have at their disposal. Of course, it’s not only about the contacts they have, but the partnerships they have established with select carriers. Having developed relations in the industry gives them a competitive edge because they can arrange for a much faster shipment - and often at a better price. Let’s not forget that they know the market inside and out, so negotiating top rates is a lot more intuitive for them.
While back in the day there might have been some bad apples that gave a bad name to the freight brokerage industry, legislators found a way to tackle the problem. In 2013, one of the major requirement for getting a freight broker license, the freight broker bond, was increased from $10,000 to $75,000. The move was a painful one for the industry, but the goal and results ended up positive. Freight broker bonds are designed to protect brokers’ customers, i.e. shippers and carriers. The bonds act as a safety net that acts in favor of their interests. They guarantee that brokers will stick to the rules and to their contractual agreements. In case a broker fails to do so, an affected party can make a claim of up to $75,000. The higher reimbursement itself means a higher level of safety for shippers. But besides this direct consequence, the ethical standards as a whole have risen in the brokerage field. Brokers who stayed in business after the bond rise are trustworthy and committed to their trade. Shippers can check if the broker with whom they are working is bonded in the FMCSA’s searchable database.
If you need to make regular shipments to one destination, your broker can contact a private fleet whose drivers are regularly covering that route. This makes the delivery faster and safer. In fact, if you work with for-hire drivers, there is much less certainty in the process. Another benefit is the possibility to request drop trailers. This means that you can leave the shipment and not have to wait for the loading and unloading to finish. This saves you time that you could be using for other business tasks. And it shouldn’t be forgotten that freight brokers often use multiple modes of transportationon top of motor carrier services, such as air, rail intermodal, vans, and LTL, among others. With so many possibilities, they can guarantee the fastest shipping and the best price, shopped around from the different modes.
The fact is, freight brokers are not only obliged to care, but also have a financial incentive to make sure the shipment is delivered safely. Most brokers select with great care their partnerships with carriers and check them over time. They always inquire about their safety records because if there is trouble with a shipment, this is a problem for the broker too. If you are worried about the safety of your shipment, the best way to go about it is to speak openly with your freight broker about their carriers. In this way, you will get clarity on the topic, and the broker will be aware about your worries. In some cases, brokers even have cargo insurance such as contingent cargo insurance to provide more peace of mind to their clients.
Red Lab Merch
We'd love for you to rep a Red Lab Logistics hat or fishing shirt. Fill out the form below so we can send you some.