Insider Secrets to Successful Freight Brokering

Freight Broker Videos - Legal Stuff

Here are a couple of videos. The first deals with some legal stuff. It’s good, but, if you are not ready for it, check out the other video. You can expect well-structured, well-organized training.

VIDEO ONE: Session 9.7.4 – Broker Liability (a portion of some new material I’m putting together) “Freight Broker Vicarious Liability and Negligent Carrier Selection”

VIDEO TWO: “5 Steps to Freight Broker Success”

LASTLY (an ethical bribe) – Give me a LIKE and make an objective COMMENT on EACH video. (You might get a little surprise). I hope you enjoy them but, mostly, I hope you get some useful and practical information. That’s what it’s all about.

This is John in El Paso, Texas

The Fast Act Mandates the FMCSA .....

The Fast Act has mandated that the FMCSA review and reform its CSA program. The FMCSA has ignored this mandate and continues doing business the way THEY want to.

What is in question is the way the FMCSA determines safety fitness ratings for carriers. The ultimate goal is for the FMCSA to identify high risk carriers that may be involved in crashes.

Instead of working on their review and reform of CSA, the FMCSA is about to modify how safety fitness determination are made.

You will be hearing more on this issue and it will be interesting to learn to what extent lawmakers will get involved.

Freight Brokers Get Some Relief ....

Before Congress left office for the season, they passed some legislation. The most important item for freight brokers was the requirement to remove FMCSA ratings from the public until the FMCSA gets some issues resolved.

The biggest issue dealt with a flawed methodology that the FMCSA was using when compiling truck ratings.

You need to know how to select a truck. There is no fool proof way to do this that will keep you out of a law suit. But there are some practices you need to take as a freight broker to keep yourself as clean as possible.

Now listen, if you are considering brokering, you want comprehensive and detailed instruction that includes the most up to date changes in this industry. Don't settle for anything less.

To get started for the new year, go here to learn about your training options: www.atexfbt.com

John

You gotta attend this one day seminar .....

There is another Transportation Law seminar coming up
(Feb. 24) in Ontario, CA.
Attorney Justin Olsen is conducting this. I picked up on
a webinar with Justin and two others several weeks ago
and the info was excellent as well as crucial and timely.

Go here to learn more and to register:
http://olsentranslaw.com/seminars/

The topics cover transportation law for freight
brokers (and others). In my freight broker training,
I touch base on several legal issues that freight
brokers need to be aware of.
But, with Justin's seminar, you get it from the horse's
mouth and a whole lot better and a whole lot more.

Go here:
http://olsentranslaw.com/seminars/

If you call them, tell them you heard about this from
"the Atex guy" in El Paso.

The Highway Trust Fund - Is There Enough Money?

It looks like there will not be a long term solution for funding highway construction and other highway projects. Congress is too afraid to increase taxes although, a small increase at least, may not be out of line. But these guys and gals are looking at self preservation, not the highways.

So far, here is what is in store for highway funding - and it's only for less than a year:

"The House bill, which passed 367-55, would approve nearly $11 billion for highway projects through May. The Department of Transportation projects the Highway Trust Fund to run out of money as early as next month. States rely on trust fund dollars to help pay for large-scale infrastructure projects".

This information was taken from the online web service of Transport Topics.

Freight Brokers Have Responsibility

If a freight broker does not apply his or her "due diligence" when selecting a motor carrier, this broker could face some BIG $$ judgments against them for being negligent in the carrier selection process.

The problem is, there are no explicit guidelines to follow when making a carrier selection.

In our training, we address these issues and try to propose some type of solution until there is more clarity in this industry.

Go here to learn more about freight broker training: www.atexfbt.com

Freight Broker Agents Beware!

Many individuals begin as broker agents; some stay on as agents and some open their own brokerage. A person can find success with either way.

Most freight brokers will have a broker-agent agreement. You, most likely, will need an attorney to help you on this. The freight broker will make sure that he or she covers all the bases on their behalf. Okay, so far.

But, here is something to watch out for if you have your sights on working as an agent.

Some freight brokers may offer a base salary plus commission and then move the agent onto a straight commission after certain quotas are made. What may not be clear, however, (unless you have an attorney) is that if the broker starts you out with a base salary, this might be a "draw against commission".

The broker may then deduct all, or most, of your paid salary from the commissions until you pay your base salary back. There may be some variations on how this works; but the idea is to make sure you understand what you are signing when it comes to any contract.

Freight Broker Negligence

Well, it happened again, unfortunately. A truck driver who was coming off a high, fell asleep, hit another truck and the truck driver who was inspecting his own truck. The truck driver near the roadside was killed.

Naturally, the driver coming off the high was primarily negligent. The court then found the freight broker who hired the trucking company negligent as well. It's called "vicarious negligence". Sort of like "second-hand" negligence.

The fact is the guilty trucking company did not have their proper authority or insurance.

Folks, there is no excuse for being negligent in hiring trucks. It takes only a few minutes to check the carrier out. Many freight brokers don't know they need to do this nor do they know how.

Don't be caught with a multi-million dollar suit for something that can be so easily avoided. Get the proper training. Start here: http://www.atexfreightbrokertraining.com

A Freight Broker's Liability

A freight broker normally does not take possession of cargo and, consequently, there is no broker liability, generally speaking. When damage or missing pieces occur, the parties involved may look to the bill of lading, separate contracts and, perhaps, the Carmack Amendment which places the liability squarely on the motor carrier when the carrier has possession of the cargo.

When it comes to personal injury, however, this is another issue. Brokers are more likely to get hit here with a liability suit for one reason or another. Actual negligence or vicarious liability come into play here.

The broker's conduct and the relationships between and among the parties need to be understood and clarified. Sometimes a shipper is uncertain if they are dealing with a motor carrier or a broker.

This is why, in my training, a simple statement is included in the broker's set up package whereby the broker indicates his or her role relating to both the shipper and the carrier. The broker should indicate that they are independent contractors, that they do not take possession of the cargo, that they are not a motor carrier and so on.

Making these simple statements can go a long way toward lessening freight broker liability. If you are uncertain about your legal liability, you might want to consider comprehensive training where all the details of operating a freight brokerage are covered. Check it out at: http://www.atexfreightbrokertraining.com

Your Business Name

You most likely will start your business as a sole proprietor, a corporation, or a partnership. In either case, you need to select a business name that is available. For a sole proprietorship, you normally would file an assumed name application with the county clerk.

Sometimes you can do an online search with the county clerk's database to see if your desired name is available. Otherwise, you may either call them or pay them a personal visit. It usually costs just a few bucks to file the application.

For a corporation, you would normally search the secretary of state's database to make sure your desired name is available. Once you find a name that is available, go ahead and file your corporate papers to secure the name.

Let me tell you, for most corporations, the filing process and fees are quite easy and affordable if you don't go through an attorney.

In the next post, we will discuss the form of doing business and whether you need an attorney or not

By the way, in my training with one-on-one unlimited support, I help you do all this over the phone and Internet. Most of my clients are so happy and relieved with the help.