Pathway To Home Freight Broker Business Success
Your Steps To Becoming A Professional Logistics Service Provider or also known as a freight broker depends on the dedication you have to learning the true skills of a freight broker. LFS can help you get the skills needed through their
Freight Brokers act as an intermediary, a middleman. Their job is to move the freight in the middle of the shipper and broker. As such, they must have essential skills to monitor the movement of the freight and work with the carrier. It falls upon the shoulders of freight brokers to make sure that they understand FMCSA compliance laws and any changes therein, that they know which new HOS laws are being implemented, and what the laws are regarding the ELD logging device and software. Moreover, freight brokers need to know how to use Transportation Management System (TMS) software. All of this increases trustworthiness and professionalism in a highly competitive industry which in turn increases customer and business loyalty among professional shippers, trucking companies, and drivers.
As a freight broker, having these skills means you are better able to work with businesses like trucking companies, and in so doing help the trucking companies benefit from the skills and gain consistency with the freight. All of this can be done by both the freight broker and the carrier trucking company to work together in this changing 2018 logistics industry.
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1. FMCSA Compliance Laws
Freight brokers have a lot of responsibilities and in order to make sure trucking companies are staying compliant, they need to learn about the FMCSA Compliance laws. But what are these laws and why is it important? What other things do freight brokers need to know?
Government regulations are constantly improving in order to provide the best industry practices and create a sustainable working environment. But this means that changes happen regularly to FMCSA Compliance laws. One example to a change in regulations is ELD compliance. It is up to brokers to make sure that carriers are ELD compliant. In fact, most agreements between brokers and carriers state that carriers will take it upon themselves to comply with all state and federal regulations, but brokers must provide some level of oversight.
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2. HOS Laws ( Hours Of Service )
As a freight broker, you have a lot on your plate. Your list of responsibilities is not only extensive, but each one has unique parameters and is constantly changing. Freight Brokers need to understand new Hours of Service (HOS) laws so that they can advise trucking companies and customers on how to best meet specifications. There is a long list of new regulations and each regulation has a list of who must comply. For example: any vehicle which weighs over 10,001 pounds, is used to transport 9 or more people including the driver in exchange for compensation, or is transporting hazardous materials, among many other things.
There are additional limitations on things like rest breaks, penalties, on duty time, and more. Knowing the changes to penalties specifically for egregious hours of service violations can save customers and companies many civil penalties. Knowing the rules were on duty time can help with proper payment adjustments for services rendered and better guarantee that companies are in compliance.
3. ELD Logging Device
Freight Brokers must understand the new ELD logging device and software. This mandate is designed to improve safety within the industry. The electronic logging device is one which is synchronized with the engine on the vehicle to automatically record driving time. Theoretically this makes it easier for drivers to log time on the job and gives a much more accurate number compared to paper logs. By automating the system driver safety and the safety of other drivers on the road is increased. The mandate stipulates that all drivers and carriers must have these devices installed by the deadline. Any shippers who still rely upon paper logs or other logging software have to make the transition. This logging device transforms the safety on the road and enforcement of protocol among companies. The plan behind these mandates is to reduce the amount of driving fatigue among drivers which leads to unsafe wrote conditions for other drivers. In