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Broker Vs. Carrier

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In this type of industry, which is car transport, there are two main types of companies: carriers and brokers. Each of these companies has its own responsibilities and principles in doing car shipping. Do you want to know what a carrier is vs. what a broker is? Let’s explore both of them and learn about their unique features.

carrier vs broker
Working with a Carrier

Companies that are called carriers handle the transport process of your vehicle, meaning that you are working directly with the company. In this case, the company possesses the trailers that are transporting the vehicles. A carrier can be a one-man company with own or sometimes two trucks or big auto transport company with many trucks.  Most car transport carriers only serve to a limited number of routes and locations. They don’t divert too far from their designated routes because this would ultimately slower services to all clients and higher rates

Working with a Broker

A broker is a middleman between the customer and the moving company. A broker company doesn’t own any trailer that can transport your vehicle, but they can help you with car shipping by finding a trailer for you from another company. Brokers have access to a database of carriers from around the country and can arrange your car’s pick up of the same day. This is one of the biggest advantages of using a broker/logistics management company. Brokers are members of a strictly controlled system, licensed and bonded to contract with customers and carriers.

They carry a liability just like a carrier, however, a broker does not provide the insurance that covers your vehicle. They have a surety bond that can bear claims from carriers. The carrier’s cargo insurance carries the customers’ vehicles, not the broker’s bond. The broker can provide you with the carrier’s certificate of insurance for verification at any time for your peace of mind.

What About Long Island Car Transport?

Are we a broker vs. a carrier company?

As for us, we are both carrier and broker at the same time. Some big companies, like us, are registered brokers as well which gives us the opportunity to broker out 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 quality of services. Dealing with a carrier does not mean customers will pay less. A service costs what it costs. Whether that is time, equipment and effort to drive or to find and deal with customers, it all costs money.

What are the similarities?

  • For both entities, registration with the FMCSA and DOT is required.
  • Both 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 cannot provide an exact pick-up and delivery dates. It is not true that a courier company can guarantee dates. It is a known fact, that 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
  • In both cases, guaranteed pick-up and delivery dates could be arranged only for a premium rate
  • Both offer door-to-door car shipping services. Yet neither of them can guarantee this type of service. If your area has restrictions on narrow streets or residential rules and regulations, probably, a large truck cannot enter. In such a case, you will have to meet the truck driver at a nearby open area such as a parking lot.

Call us for more information at (929) 229-0339.

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