Brokers VS. Carriers

Auto Transport Carriers and Auto Transport Brokers - What’s the Difference?

One of the most important distinctions to understand is the difference (and occasionally, the overlap) between an auto transport broker and a carrier. The customer or person having a vehicle transported is also known as a shipper.

What Is An Auto Transport Intermediary?

Auto transport brokers don’t own their own fleets and typically are not the companies that will move vehicles. Agents facilitate auto relocation by connecting customers (shippers) with providers that offer the specific services requested. Brokers are also known as non-asset-based carriers, intermediaries, or third-party logistics providers.

The advantage of using a agent instead of a direct service provider is that you have more options because of their existing network of vehicle movers. If you deal directly with a company, they may not have the necessary equipment when you need it, or may not be licensed in all the states required to relocate your vehicle. A broker does the leg work of finding a suitable operator that meets these criteria and can sometimes secure a more competitive rate by creating competition between moving companies on behalf of the shipper.

The downside to dealing with a broker is that some questionable companies are in the industry. Auto relocation is a multi-billion dollar industry, and technology—specifically the internet—has created a low barrier to entry into the business, which has led to some unethical practices. The Consumer Advisory about Auto Movers has indicated a drastic increase in complaints against companies in recent years as a result of these practices.

Did you know that chances are, when searching for an auto mover, many of the companies you find will be brokers rather than direct service providers? Those companies with many ads posted online are often brokers because they tend to have the advertising budget to market worldwide and in the areas where people usually search for relocation services.

You might wonder why a agent can advertise on a larger scale than a moving company, and that is simply about the budget each company has. A direct service provider usually has higher overhead costs with drivers and an office team, but a broker often has little overhead, aside from agents, to respond to inquiries for quotes and service.

What Is An Auto Transport Mover?

An automobile transport carrier is a company that owns the trucks and employs the movers who transport a vehicle.

One benefit of using a hauler is that you are dealing directly with the company (and maybe even the person) hauling your vehicle, eliminating the “middleman.”

It’s important to remember that some movers cannot move a motorcar since licensing and legal requirements differ from state to state. Dealing strictly with a mover can sometimes limit you in terms of availability, a method of transport, and the time of delivery. Dealing directly with a carrier can sometimes mean a higher cost because there are fewer competing bids for the service.

Auto Hauler Companies That Are Agents and Haulers

Some auto-moving companies are both brokers and carriers. If no mover can handle the job, these companies can move vehicles and broker a deal between shippers and movers.

How To Determine If A Company Is an Intermediary or Hauler

The Protect Your Move website offers information about brokers and carriers directly from the Federal Motor Hauler Safety Administration. At the FMCSA site, you can research specific companies by state, motor carrier license number , and U.S. Department of Transportation number.

You can also see if a company is a broker, carrier, or both and whether it is active or inactive, which indicates whether it complies with current insurance regulations.

Remember

A broker can offer information and access to numerous car carriers. This means you won’t find yourself stuck searching for movers to pick up at the state line, where another hauler may be unable to haul. Brokers can schedule the transport for the car to be picked up by one movers and then, if necessary, transferred to another airline along the way for prompt delivery. It is not always necessary to transfer from one carrier to another, but for the time that it may be, it’s good to have a knowledgeable broker who can handle those arrangements.

Related Information & FAQ

• Six things auto transport carriers only know
• Places that ship cars
• Long-distance moving services