Things To Avoid When Choosing A Freight Sale Agent
For many companies, the cost of freight transport is second only to the cost of payroll. To mitigate it, small and midsize companies turn to sales agents who specialize in freight brokerage: the brokering of shipping arrangements on behalf of shippers. However, with the favorable price at Siggol Logistics, this shouldn't be the case.
Customers want a freight sale agent that will help them realize improved cargo care, reduced shipping cost, and improved delivery time. But when it doesn't, damaged cargo, damaged vendor relations, and service plans that address niche needs, but don't offer comprehensive solutions, can cause financial trouble.
To avoid these debacles, shippers should avoid the following things as they shop for freight sales agents:
NO BROKER'S LICENSE
Could a broker that lacks license provide effective brokerage services? It's difficult to say. Like other types of business licenses, a freight brokerage license doesn't guarantee expertise, much less intuitive solutions. But it does imply that a broker possesses proficient knowledge of freight brokerage, which is more than one can say for an unlicensed broker.
At Siggol Logistics, we encourage one to deal with licensed companies as we are also licensed.
NO CARGO INSURANCE
Brokers that lack cargo insurance leave shippers uncompensated for damaged, lost, or stolen cargo. A large logistics company like Siggol Logistics promises 100% compensation due to its strong insurance backing.
While dealing with uninsured freight agents, you could pursue damages legally. However, the cost of doing so (even after you recover a portion of attorney fees) could easily exceed the value of the cargo. This is a lot of stress for not ensuring that a broker carries insurance.
Not all freight agents offer the same services, unlike companies like Siggol Logistics that have a wide variety of services to choose from. Some provide standard services, others provide niche solutions, and still others offer a mixture of both.
The key of course, is to identify what you need, and anticipate your future needs in relation to your business goals. For example, if you need to ship by air, or you foresee export shipments in your company's future, you might limit your selection to agents that serve as air freight agents (i.e. agents that perform air forwarding).
But this may either benefit or limit your business depending on whether you will be shipping through other methods as well. This is why companies such as Siggol Logistics that cover all services are encouraged.
MISUSE OF 2PL CAPACITY
Some 3PL providers also offer second party logistics (2PL), serving as carriers as wells as brokers. This mixture of disciplines can benefit shippers, but it can also be a drawback.
Some assets-based 3PL providers use their brokerage function to funnel business to their carrier function. If you find that asset-based 3PL provider serves a vast majority of its customers with its own fleet, investigate the matter further.
POOR BUSINESS HISTORY
Siggol Logistics prides in offering high quality services as seen from past customer reviews.
As you would do before hiring any business, check an agent's business history. If it has a record of not resolving customer complaints, look for a different agent. Especially in shipping, you can't afford to wait for a difficult agent to resolve-or not resolve-your complaint.
POOR CUSTOMER SERVICE
Shippers' biggest complaint about some logistics companies is that they feel distanced from them, which leads them to feel distanced from their shipping process. Therefore, it's important to consider carefully the level of customer service (and also the specific customer service options) you want in a 3PL provider.
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