Car Shipping Brokers vs. Carriers What’s the difference? Pros and Cons of Both

When it comes to auto logistics, there’s a big difference between a broker and a carrier. A carrier is a company that operates a fleet of company trucks with company drivers, and all operations are handled in-house. A broker, on the other hand, is the go-between that has a network of professional owner-operator drivers under contract and dispersed around the country. They receive an order for a shipment from a customer and check with their contract drivers to see who’s available to take the shipment. They then gather several quotes from different drivers and present them to the customer.

Each comes with its own sets of pros and cons: 
 

Auto Shipping Carriers

Pros:

• Tighter control over the process, with a single point of contact and direct accountability fo
• Reliability from company drivers
• Consistency, with the company maintaining higher standards for performance 

• Specialized solutions (in some cases

  Cons:

• Higher overhead in keeping, maintaining and operating company trucks and payroll for drivers
• May be less cost-effective for smaller shipments
• Limited flexibility and capacity for extra workload

Auto Shipping Brokers:

Pros:

• Access to a wider range of drivers around the country, for more flexibility
• Vehicle transport brokers can use volume and access to several different drivers to present a lower quote for a job
• Convenience, with brokers handling the entire shipping process end-to-end
• Expertise to put toward negotiating rates, managing complex shipments and routes

Cons:

• Middleman fees can become expensive (in some cases)
• Drivers have to be carefully screened and vetted, including licensing, permits, documentation, carrier insurance
• Communication can become more complex

The Role of Brokers in the Transportation Process

You can think of brokers as the link that connects customers to services, intermediaries who facilitate the transportation of goods (vehicles, in this case) and who can negotiate better rates with reliable contractors. They connect customer and carrier and help optimize the shipping process, especially in the case of a driver who has several pickups and dropoffs on his route.

Vehicle transport brokers are the  people who take care of all the details. They manage the shipment end-to-end, from the time it’s booked  until it’s dropped off at its destination and the customer signs for it. They make certain that they have all the necessary information from the customer, and use that info to help connect them with the right driver. In today’s marketplace, the broker has a whole suite of cutting-edge technology to make this go more smoothly and efficiently. Drivers can be tracked via GPS and various Transportation Management Systems can help make everything more accountable.

They also work with drivers to ensure that:

• Their equipment is safe, clean, well-maintained and up-to-date 
   
• They have a current commercial driver’s license and the necessary documentation, including DOT permits for interstate commercial hauling,
• carrier insurance, and any other licensing or certifications
• They make sure the trailer won’t be hauling any hazardous or dangerous cargo along with the vehicle(s)
• They can sort out any special needs, such as team drivers or assistance en route
• They ensure that the driver can commit to the customer’s timeline
• They can help handle any unexpected delays along the route, such as equipment breakdowns, weather, road conditions, unplanned checkpoints

Is there any difference in services or operation process among auto transport brokers in different states/locations?

Not surprisingly, the auto transport broker business can vary a lot state by state, mainly because of state laws and regulations for the truckers themselves. For instance, Kentucky requires truckers to have three separate certifications to operate within the state: an IFT number, a KYU number and a KIT number, while Delaware only asks for documentation on the vehicle’s registration itself.

Things like licensing, permits, weight allowances and background checks can vary a lot from one state to the next, along with the minimum requirements for insurance coverage for independent owner-operators. These are details that  vehicle transport brokers have to stay on top of, along with federal permits and regulations that have to be addressed.
    
When it comes to commercial trucking, things can really vary a lot from state to state. A few examples:

• California has the strictest emissions regulations in the country, for commercial trucks and private vehicles both. In addition, an 18-year-old can get a CDL for intrastate trucking in California, but drivers need to be at least 21 for a CDL for interstate use.
• Truckers cannot drive in the left lane in Michigan, and are subject to a $250 fine if they do.
• In mountainous areas of Colorado, commercial trucks are required to use chains on their tires for winter traction, and are subject to fines if they don’t.
• Washington, Pennsylvania and Maine have some very specific and strict laws for securing loads and using tarps to cover open loads such as gravel or lumber.
• Nevada prohibits trucks with a gross vehicle weight of 26,000 pounds or more from using certain routes at all.
• Oregon and Idaho have strict limits on gross vehicle weight.
• All states have gross vehicle weight limits that apply to certain routes, bridges and overpasses.

These are across the board for truckers in these states, but also apply to vehicle transport brokers.

What Makes the Best Auto Transport Brokers?

For any big outlay of money, you really need to research your choices. Here are the things to look for and be mindful of when you’re looking for an auto transport broker:

• Positive reviews and ratings from sources like Google, Yelp, BBB, Trustpilot as well as customer reviews on their website.
• Full credentials with the Federal Motor Carrier Safety Administration
• Prompt and direct communication and customer service.
• Insurance coverage that’s above and beyond (at least $100-250,000 worth of policy coverage)
• No hidden fees, surprise charges or surcharges.
• A choice of several quotes from different contract carriers.
• A proven track record of experience in the auto transport business.

How Car Shipping Brokers Prioritize Safety During Vehicle transportation

Your vehicle is one of your biggest investments, so safety is a top priority for the vehicle transport broker and the driver both. That all starts with the insurance coverage, and you’ll be asked to do an inspection of your vehicle at the time of pickup to verify its condition (the driver will sign off on this too).

Aside from that, there are some specifics of procedures and equipment that can assure safety. That includes the right ramps for the auto transport trailer, the right kind of straps to secure the load (mounted the correct way as well) and the correct kind of trailer. For enclosed auto transport, some systems feature a “cassette,” a sturdy steel platform that the vehicle is loaded onto, then vehicle and cassette are loaded into the trailer with a forklift.

It’s important to note here that federal regulations prohibit hauling personal items along with the vehicle. It’s permissible to put 100 pounds or less of personal stuff in the trunk, but it’s advisable to remove all your personal items completely before shipping.

Why Car Shipping Brokers Are Essential

Freight brokers are common in the logistics industry, and vehicle shipping brokers fill the same niche. It’d be near impossible for an individual to find an owner-operator to arrange a vehicle shipment, and the auto shipping broker steps in to handle that part of the transaction. They can bring expertise and technical knowledge for this process that individuals can’t, and they can leverage their network, their technology and their experience to get the best possible rates and service.

Expertise and Industry Knowledge

Now that you have an idea of all the details that come into play, you should also have an appreciation for the importance of expertise and industry know-how that a good auto transport broker needs. Anything less would mean an inefficient operation and too many chances for things to go wrong at some point in the process.

Access to a Wide Network of Carriers

Think about an auto transport carrier that’s based in one location, with a fleet of trucks and a staff of drivers. Those trucks have to make it back to home base and the drivers back to their homes – either that, or they just stay on the road forever with drivers sleeping in motels, and the trucks having a hard time getting the maintenance they need to operate safely. After all, things like oil changes, tires, trailer service and periodic preventive maintenance are all vital to any operation.

Then think about a vehicle transport broker, with an entire team of contract owner/operators dispersed around the country. Got a vehicle delivery that originates in Nashville? No problem, there’s a driver in Chattanooga who can work that into a route, then there are other drivers in Memphis, Lexington, Florence and Knoxville who are all on call. The broker can gather up quotes from all those drivers and present them to the customer to get the best possible rate.

Cost Efficiency

Operational efficiency like what we just mentioned means savings that can be passed along to customers, and it’s even better when an auto transport broker and customer can choose from several different quotes. In most cases, a vehicle will be loaded onto a carrier trailer with up to nine others, which helps the driver make the most of the run, for a more streamlined route and a better deal for the customers.

How to Get an Accurate Quote?

This is where it’s important to check each auto transport broker that you consider carefully. Performance, customer satisfaction and rates can vary a lot from one outfit to another. Check the customer reviews and reviews from BBB, Google, Trustpilot and logistics sites to gauge the reputation of the company in question, and check all the details carefully to make sure you won’t get stuck with any surprise fees or surcharges. 

Should I Use a Broker for Auto Transport?

Short answer: yes. An auto transport broker is the intermediary you need to get the best service and the best rates.

Comparing Brokered Transport to Self-Managed Shipping

If you were to self-manage your auto shipping job, where would you start? Would you look for a directory of owner-operators who haul vehicles, then contact them one by one? How would you make sure they’re qualified and dependable, with the right insurance coverage, permits, licensing and documentation? 

Advantages of SGT Auto Transport as a Reputable Car Shipping Broker

Consider everything we’ve discussed in the above sections: technology, efficiency, great customer service, great reviews, and a wide network of transport drivers to call on. Those are all the things that SGT Auto Transport brings to the table, and it’s how they’ve been able to deliver over 100,000 vehicles for over 75,000 customers and have earned a customer satisfaction rating of 4.8 on a 5-point scale. It’s an ethos of professionalism and attention to detail that got them to where they are now. 

Most Popular Types of Auto Transport Services offered by Car Shipping Brokers

• Open car shipping: this is where your vehicle is loaded onto a transport trailer with several others. While your car is exposed to the weather, it’s the most cost-effective way to go.
• Enclosed car shipping: for enhanced security and protection, your car is in a sealed trailer for its entire trip.
• White-glove transport: perfect for high-dollar vehicles, white-glove transport means that your vehicle will get a special level of handling and monitoring for its trip.

Types of Vehicles Handled

While some auto logistic brokers handle things like ATVs, heavy equipment, golf carts and boats, for most the bread and butter of the business is cars and trucks. That could include everything from an everyday family sedan, minivan or SUV to rare antique Brass Age cars, exotic sports cars, supercars, vintage muscle cars, non-running project cars and even salvage vehicles. 

Step by Step Brokerage Process. Arranging Vehicle Transportation Through a Broker.

This is a beautifully simple process!

• Submit info on your shipping job
• Broker finds the right transport driver and gathers quotes
• Customer accepts quote and transport is booked

Initial Client Consultation

The customer rep or the Quote Calculator feature will ask for specifics on the vehicle, preferred method of transport, timeframe and other details, which all figure into shipping costs.

Quoting and Pricing Strategies

The broker’s system will start finding quotes from various transport drivers who can work the job into a route

Carrier Selection and Coordination

Brokers work with carriers dispersed around the country, and can locate a carrier who can optimize his route by working that vehicle in for pickup and dropoff (along with a number of others).

Cost Factors in Auto Transport Brokerage

Breakdown of Typical Costs Involved

These are the main considerations:

• Curb weight of the  vehicle
• Preferred transport method
• Distance to be covered
• Calendar period

Distance and Route Considerations

Obviously, the longer the distance involved is, the more expensive things get, as quotes are calculated on a cost/mile basis. The good news is that the more miles are covered, the lower the cost/mile becomes.

Vehicle Size and Weight Implications

Curb weight is a big factor in quotes as well, as a heavier vehicle means the transport driver will use more fuel. Vehicle size is important too: a 4-door F150 takes up a lot more space on the trailer than a Mini Cooper.

Understanding Quotes and Estimates

The broker will present several quotes for customers, and the customer can make a choice then; any questions can be answered by a consultant or customer service rep. 

Technology used for Auto Transport Brokerage

Innovations in the Industry

Just like with any logistics outfit, auto shipping brokers have leveraged technological advances to help streamline operations.

Tracking Technologies

Brokers use GPS, mobile phones and other tracking technology to monitor a driver’s progress along the route.

Online Booking Systems

The Quote Calculator feature takes the friction out of the booking process; it just asks for basic information about the shipment (the info we’re discussing here), and within seconds it can deliver an accurate quote. Any further questions can then be escalated to a live customer service rep. 

The Impact of Electric and Autonomous Vehicles on Auto Transport Brokerage

The first thing to bear in mind with EVs is the weight; a battery pack can add as much as 1,000 pounds or more to a vehicle’s curb weight. Lithium-ion batteries are also considered hazardous and can be subject to restrictions or regulations in some states.

Autonomous Vehicles and What They Mean for Car Shipping Brokers

In the future, brokers might be able to coordinate with autonomous vehicle shippers, but this isn’t a mature technology yet.

The Cost of Convenience: Understanding Pricing
Breaking Down the Costs of Auto Transport

Cost factors:

• Vehicle weight
• Distance involved
• Preferred shipping method
• Timeframe

How Brokers Offer Value Beyond Price

Price isn’t everything - a good broker will mean professionalism, top-notch customer service and timely deliveries.

High Customer Service Standards by SGT Auto Transport in Car Shipping Brokerage

The high standards of SGT Auto Transport are what keeps people coming back. That means support that’s available 24/7/365, careful handling for every vehicle, on-time delivery and pickup, and full accountability. 

How Technology Has Transformed the Car Shipping Brokerage Over the Years

Just like in any other business, technological advances have meant less paperwork, faster processes, and a more friction-free experience.