Learn about the auto transport broker-carrier relationship. Review our guide and call us with any questions you may have!
What is an auto transport broker?
- Brokers have access to a database of carriers from around the country.
- They can often arrange the pick-up of your car the same day.
- You can always call your broker to track your vehicle and ask questions.
- Brokers are members of a strictly regulated system, licensed and bonded to contract with customers and carriers.
- They carry liability, however, a broker does not provide the insurance that covers your vehicle.
- They have surety bond that can bear claims from carriers and other business partners.
- Customers’ vehicles are insured under the carrier’s cargo insurance, not the broker’s bond.
- The broker can provide you with the carrier’s certificate of insurance at any time for your peace of mind.
Brokers manage the loads once they have contracted with a customer while carriers are responsible mainly for loading, unloading and driving. Brokers do not perform the transport service themselves, but they find the best rated carrier that runs your route to transport your vehicle. Many brokers have both carrier and a broker license, just like Corsia does.
Claims that brokers’ fees are non-refundable, no matter what, are not true. A broker will always refund your money if they have not been able to find a carrier. When a broker has done their job to find and contract with a carrier, and after that a customer decides to cancel the order, only at that point of the shipping the broker fee is not refundable.
What is a vehicle hauling carrier?
A carrier can be a one-man company with one or two trucks, or a big auto transport company with many trucks. Single owner operators make up about 80 percent of the whole fleet in the US. Most auto transport carriers only serve a limited number of routes. They do not divert too far from their designated routes because this would ultimately slower services to all customers and higher rates.
- A vehicle hauling carrier is usually a double deck truck that can load up to ten automobiles.
- Such trucks are driven by professional CDL drivers trained in loading, unloading and transporting vehicles.
- The drivers are usually owners of one or few trucks and they decides on their routes.
- The truck driver is the person responsible for picking up and delivering your vehicle.
- By law every carrier must carry a cargo insurance, with a minimum usually of $250 000.
Some bigger carrier companies are registered brokers as well which gives them the opportunity to sub-contract your order to another carrier. This means that even when you think you are dealing with a carrier in some instances you go through a broker service. Most auto transport carriers do not have an online presence and customers cannot find information about their performance and quality of services. Safety ratings are usually available to broker companies.
Dealing with a carrier company does not mean customers will pay less. A service costs what it costs. Whether we are talking about time, equipment and the job of loading, unloading and driving, or to find and deal with customers, it all costs time, effort and money.
What is the difference between brokers and carriers?
Considering all we said about brokers and carriers, we can summarize it here so you can see the differences.
A broker is a logistics management entity, a partner to its customers and carriers. The broker handles the management and offers its carriers loads. Brokers work as much as carriers, often spending 12 hours a day behind their desk on the computer and the phone.
The carriers accept loads from their brokers or shippers at a price they find reasonable, usualy consulted with national dispatch boards. They know best the cost of moving a load and thus they define market prices. Carriers deliver vehicles to customers and their work day is usually 8 hours of regulated driving.
When it comes to similarities, this is what you should know.
- Both entities must register with the FMCSA and the DOT and get licensed.
- Both carriers and brokers contract with customers to transport their vehicles.
- A carrier company contracts that its own trucks will transport your vehicle, while the broker company contracts with carriers to ship your car.
- Both carriers and brokers cannot guarantee pick-up and delivery dates.
- It is not true that a carrier company can guarantee dates. In the auto transport industry dates are simply never guaranteed. Road, whether or truck condition can delay the transport service at any point in time during transit.
- Guaranteed pick-up and delivery dates could be arranged only for a premium rate and both a broker and carrier will tell you this.
- Both carriers and brokers offer door to door car shipping service. Yet neither of them can guarantee this type of service. If your area is restricted by narrow streets or residential rules and regulations, a large truck may not be allowed to enter.
Why are there broker and carrier companies?
Brokers and carriers are equally important for the functioning of a fair and competitive industry.
In today’s market economy competition is important because it creates a system of checks and balances. Just like in many other industries, the engine of the auto transport industry is all small and midsize broker and carrier companies that work together on daily basis. This system of constant partnership keeps the prices competitive and does not allow monopolization of the market by large corporations.
How do I choose an auto transport company?
In the auto transport industry both carriers and brokers aim at offering the best possible service. They do their job and they get paid for it. This is how it works in every industry. The car shipping rates are dictated by several factors, not by brokers or carriers alone. The most important part of the equation is to work with a thrustworthy company.
Brokers are licensed to manage logistics cargo and contract with carriers to delivery that cargo. Reliable broker companies work for their customers to match them with an apporpriate carrier. Most auto transport carriers in the US are small 1-2 trucks companeis that only cover a limited number of routes.
Customers often think they should work with carrier only, but for a customer to find a carrier that runs their desired route, has an open spot for their desired dates the chances are close to impossible.
Most carriers do not have online presence and there is no way for a customer to find them. If you can find a carrier that matches your criateria you can certainly book with them. However, most carriers are visible only to brokers on national dispatch boards where a broker can check their license, insurance and safety ratings.
A small number of large logistic companies are both a carrier and a broker, but they do not serve the whole country. Moreover, small carrier and broker companies keep the industry from monopolizaition such big companies could impose on the industry. If you still have any questions, please call us. We are here tohelp you understand how shipping a car works, and give you peace of mind. Thank you!