FreightCenter increases its surety bond to a newly proposed maximum of $100,000, further demonstrating its pledge to protect the freight transportation industry against fraud. As certified by the Transportation Intermediaries Association (TIA), this larger bond ensures the financial stability of the third-party logistics provider or 3PL and its integrity to uphold contractual obligations between carriers and shippers.
To attain the TIA performance certification, FreightCenter must meet specific requirements such as maintaining a high credit score, insurance coverage, broker bond verification and written carrier qualification procedures.
"Because we provide more products and services than a typical freight brokerage or 3PL, we believe we need to further separate ourselves from small, financially unstable firms in the industry," says Matthew Brosious, chief executive officer for FreightCenter.
FreightCenter offers three tiers of Web-based tools designed to optimize LTL (less-than-truckload) operations for smaller firms or truckload brokers who want to expand their book of business to include rating and booking of LTL freight and more.
Two no-cost tools available, the HTML code-based freight shipping calculator and the Freight Rating API (application programming interface), offer transmission of FreightCenter’s contracted rates to ecommerce sites in North America. The top tier solution is the FreightCenter TMS (transportation management system), which is essentially a private-label repackaging of FreightCenter’s robust and $39-million revenue generating transportation management system.
"We understand that stricter regulations make it difficult for some legitimate freight brokers to stay in business, which is why we offer solutions that help small, family-owned businesses manage their expenses and generate new streams of revenue from LTL, truckload, intermodal and specialized freight," says Brosious.
At a 70/30 split, FreightCenter customers are predominately small to mid-sized businesses that cannot afford the higher bond but still need to protect their assets. These smaller firms are increasingly looking to partner with a third party to avoid the expense while retaining their credibility in the industry.
The additional tasks of developing secure, SaaS-based technology along with streamlining online procurement of freight shipping makes FreightCenter what has come to be known as a fifth-party logistics service provider or 5PL. With a scope beyond that of a traditional freight broker or 3PL, the company has a greater liability to maintain stricter standards for excellence.