Some people choose to work as a Broker Agent under the authority of
a freight broker. And there is nothing wrong with this. Some agents are
prospering more so than freight brokers, I would imagine.
But you need to be careful.
Most
freight brokers will have a contract. I suppose many broker agents just
sign the contract because they feel that's what they have to do. Well,
maybe you DO have to sign it in order to work for the freight broker.
But it is absolutely necessary to READ and UNDERSTAND everything that
is in the contract.
For starters, the contract will be slanted in
favor of the freight broker. That's okay as long as it is "fair".
What's fair and what's not fair are in the eyes of the beholder.
But
some contracts are just not fair. The freight broker will try to push
some of the collection liability off onto the broker agent. Yet, most
freight brokers should, and will, run a credit check on each customer
before transacting business.
And it seems to me that the
freight broker should assume responsibility for collections. If the
broker agent is to assume liability for collections - which is "above
and beyond the call of duty" - it seems they should be compensated
"above and beyond the call of duty".
What would be next? Would a
freight broker require the agent to pay the rent if the freight broker
is short of funds? I think not.
Don't be afraid to contest
whatever parts of the contract you don't agree with. And if you can't
live with the contract for whatever reason, do NOT bother working with
this freight broker. There are others that don't have requirements that
are "outside the norm".
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