What Is The Difference Between A Carrier And A Broker?

Auto transportation carriers and brokers are a part of the same industry. Nevertheless, the two have fundamental differences between them regarding moving motor vehicles.

The main one is that auto transport carriers own trucks and operate them independently with their administration, whereas vehicle transport brokers don't.

It gives advantages and disadvantages to owning one's trucks in the auto shipping industry. They are better at knowing the extent of their orders and can usually process them more precisely. But, having a set capacity is a double-edged sword because transportation becomes constrained when the orders outnumber capabilities. When carriers cannot locate customers for their services, it forces them to outsource and rely on brokers to obtain the requisite number of clients to sustain their operations.

Auto transport brokers also do a background check of the carrier company to see if they have appropriate insurance, previous positive experience with the broker, and their rating on boards that are only accessible to brokers.

For an auto transportation brokerage company, such hindrances do not exist. They have an unlimited number of individuals or corporate carriers to assign shipments, and the timeframes for pick-up and delivery may fluctuate more with them. But for the rest, their performance in finding different trailers appropriate for specific vehicles or transporting boats and heavy equipment is far more reaching.