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Certified Transportation Broker
Third Party
Specialists Since 1977
Yes, We Can
Do It!
Virginia Hiway, Inc. now VHI Transport
Carrier-Broker
Comparisons
| Item |
Carriers |
Brokers |
| Function: |
Transport Goods |
Arrange for transportation |
| Engagement: |
Specific custom contracts |
Specific custom
contracts |
| Control: |
Via Contract - driver |
Via Contract - company |
| Size: |
450 Billion Est. |
142 Billion Est. |
| Authority: |
F.H.A. |
F.H.A. |
| Law : |
U.S. Code |
U.S. Code |
| Gen. Liability: |
Primary |
Contingent |
| Surety: |
No |
Yes |
| Cargo: |
Primary |
Contingent |
| Claim Processing: |
Primary |
Primary |
| Hold Harmless: |
Yes |
Yes |
| Strength of H.H.: |
Balance
sheet/insurance |
Balance
sheet/insurance |
ESSENTIAL DIFFERENCES
| Item |
Carriers |
Brokers |
| One Stop Shopping: |
Biased to own equipment |
Focused on task |
| Market Expertise: |
Focus on own equipment |
Must know daily dynamics |
| Overhead: |
Heavily capitalized |
Low overhead |
| Equipment Control: |
Through own drivers |
Through tight company contracts |
| Market Partnerships: |
Uses competition |
Partnering with many providers |
| Flexibility: |
Finite |
Unlimited |
| Double Jeopardy: |
Protection
via contract |
Protection
via contract |
CONTRACT LANGUAGE THAT RESTRICTS
-
Contract asks for carrier authority.
-
To provide carrier services!
-
Equipment supply commitment as a carrier.
-
Performance standards of a carrier.
-
Carriers equipment and drivers.
-
Hazardous material provisions.
-
Freight loss or damage.
-
Insurance provisions.
Summary
It is estimated that currently 1/2 of
all domestic trucking is moved through 3rd party firms. Just as there are
good and bad carriers, so it is with brokers. Good brokers however will
give their shipper customers the level of legal protection commensurate
with risk return opportunities in the market place.
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Copyright ©
VHI Transport. -- 2006
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