What Is an Auto Transport Broker?
Between a car buyer and the motor carrier tasked at shipping the purchased car is an auto transport broker whose primary task is in the shipping and transportation GWG Lawsui of vehicles. Auto transport falls under the category of “specialized freight trucking” because they additionally deal in boats, RVs, motorcycles, and the many different vehicles.
How it Works
The personal vehicle freight industry is quite big and even includes auto transport brokers. While they cover an integral portion of the industry, all broker companies aren’t legally allowed to operate unless they have a proper licensing from the FMCSA. Brokers are part of the industry because they can access freight load boards where the posting of jobs and location of carriers within a particular locality is done.
A shipper is a term used to refer to the car buyer who needs the vehicle moved. As such, the shipper liaise with the broker to have it transported after purchase. The broker is thus expected to locate the shipping firm (a carrier). The shipping firm will then carry the new vehicle to the buyer.
When they access the freight load boards, brokers can view the current bids from carriers and will have the benefit of comparing them to the best suitable and economical options available for the client. A broker will also verify insurance holding certificates are up to date and carrier operating authority is valid.
Numbers & Figures
It is mandate of the US Department of Transportation to ensure that statistics on cargo shipments are kept. In 2007 alone, over $651 billion worth of vehicles, including the motorized ones were moved by truck. From that cost, a whopping $452 billion of cargo used the for-hire trucks. Of course, the figures have exceeded that right now, partly because of the advent of the internet.
The web has ushered in a lot of avenues and opportunities in the auto transport industry, creating a route for the emergence of new brokers. The influx majorly motivated by the low cost of starting a brokerage firm online means that the cut-throat competition, while encouraging lower expenses in the industry. The practice has also initiated an increase in the number of fraudulent cases and complaints surrounding the entire auto transporters and auto transport brokers industries.