Everything You Want To Know About Freight Broker Salaries

One of the fastest growing professions in the transportation industry is the freight broker profession. A freight broker is an individual or business that works as a liaison between individual or company that needs an authorized motor carrier and shipping services. The start-up cost of freight brokerage business is easily affordable, when compared to other professions in the transportation industry. However, many people who want to work as a freight broker have doubts about the freight broker salaries, which they can expect in this business. To get an accurate estimation of freight broker salaries, you must understand the process of making money in the freight brokerage business.

How does a freight broker earn money?

The process of making money in the freight brokerage business is pretty simple. When a company wants to move a load of freight from one place to another, they will pay for the cost of transportation. Therefore, the client of freight broker pays the broker to move the freight. However, it’s not the broker who moves the freight, but instead uses its contacts and resources to find the right person for transporting the goods. In this process, the broker pays the transporter lesser amount to move the freight than the amount it got from its client. The difference of these two amount is called a “spread” and this “spread” is the profit of a freight broker. Salary of a freight broker is profit minus the operating expenses.

For example, if a freight broker charges a company $1000 for a 500 mile trip and finds a transporter who can haul the freight for $750, then the broker has made a profit of $250. The most important factor that decides the broker’s overall weekly income is the number of loads he can move per week. Some brokers are able to move 1-3 loads per week, while other can move 8-10 loads per week. Also, the spread for each load may vary. Therefore, there are many factors that influence the income of a freight broker.

Average salary of a freight broker

salary-3 2The nationwide average freight broker salary is nearly $43,600 per year. The yearly earnings of independent freight brokers can be much higher and reach up to $100,000 to $150,000 per year. However, there are many factors that can influence the average freight broker salaries. These factors include location, company, experience, benefits, skills, etc. A proper understanding of these factors can help aspiring freight brokers in taking decisions that will enable them to get good salaries.

Top three factors that influence freight broker salaries

The three most prominent factors that influence the average freight broker salaries are discussed below. Some of these factors influence the salaries more as compared to other factors, but each factor is important while considering the salary that an aspiring freight broker can expect from this occupation.

1. Experience

This is the most important factor that can influence the salary of a freight broker.

Entry-level: An individual with 0-5 years of experience is considered entry-level freight broker. They are newcomers with no experience in the field. They earn less than the nationwide average salary of a freight broker.

Mid-level: A professional with 5-10 years of experience in this business is considered as mid-level freight broker. The average salary of mid-level freight broker is more than $50,000 per year.

Experienced: A professional with 10-19 years of experience in this business is considered as experienced freight broker. The average salary of freight broker in this category is more than $60,000 per year.

Late-career: Most of the freight brokers move on to other positions after spending 20 years in this profession. Therefore, people with 20+ years of experience are considered to be in the last stage of their careers as a freight broker. The average salary of late-career freight brokers can be up to $80,000 per year.

2. Skills

Having good skills is another factor that is associated with high salary in this occupation. The skills in this business includes creating contacts and providing efficient services.

Contacts: The database of contacts is an important factor that differentiates a high earning and low earning freight broker. A skilled freight broker builds a vast database of contacts by using methods like personal networking, exploring professional associations, doing internet research and going through various other resources. These contacts then act as a foundation for earning a high salary in this profession.

Efficient services: Freight brokers who can deliver quality shipping methods at affordable prices have a great chance of developing lasting business relationship with their clients. Most of the times companies need long-term freight broker services. Therefore, by providing excellent service you can expect repeat business.

3. Location

The average freight broker salaries are also influenced by the state where they are providing their services. According to the Bureau of Labor Statistics, the top paying states for this occupation are Connecticut, District of Columbia, Washington, Oregon and Nebraska. The average freight broker salaries for all these states are more than the nationwide average freight broker salary.

Differences between freight brokers and freight broker agents

Freight broker agents are the professionals who work for freight brokers. A freight broker carries all the liability and has to comply with federal and state regulations regarding the transportation of freight. Typically an agent has less experience and fewer resources than the broker and is going through a learning curve in this business. Most of the clients of freight broker agents are shippers that have a small business and need transportation of low volume freights. Therefore, it’s no surprise that a freight broker agent earns less money than freight broker.

Difference in earning potential of a freight broker and a freight broker agent

The nationwide average freight broker agent salary is nearly $35,600 per year. Therefore, the earnings of an agent is much less than the earning of a broker, but the start-up cost of being a freight broker agent is also very low. The factors influencing average freight broker agent salaries are the same as the ones influencing the salaries of freight brokers.

Conclusion

The job of a freight broker can be very exciting, but also very demanding. However, if you work smartly and have the patience then in some years, you will build a strong client base, which will make your job highly rewarding.

image by Shawn Carpenter and 401(k) 2013

10 Goal Setting Hacks for Freight Brokers

When you attend formal freight broker training, one of the subjects included in the curriculum is goal setting. It’s a fundamental, critical activity for freight brokers for the simple reason that you can easily get lost in the tactics and lose sight of the bigger picture in such a fast-moving environment. Knowing where you’re headed to in such a competitive industry will help you manage your time effectively and cut away the unimportant incidentals that could derail your success train.

At the end of the day, your success as a freight broker will be defined by how well you accomplished objectives that you set out to do. Here are 10 goal setting hacks designed to kick-start your freight brokering success:

1. Define goals that are relevant and important to your career as a freight broker.

The goals that you set out for yourself must be motivating and inspiring. Nothing spells failure as much as having a goal that does not excite you or catch your imagination. If the end game you’re working towards doesn’t present any value to you, then you’ll be hard put to work for it.

There must also be a sense of urgency—an “I have to do this” mindset—attached to it to minimize procrastination.  To make a goal an urgent matter, connect it to your important priorities. For example, your priority for the next year is a two-week wedding anniversary trip to the Caribbean for you and your wife. Tied to that is the goal of earning x amount of profit dollars so you can afford the vacation. Certainly, you’d want to achieve the latter so you can frolic on the sands of a tropical beach, free from the pressures of tracking cargoes, finding shippers and completing reams of paperwork.

2. Make your goals as specific as possible.

Your goal must be clearly defined—no motherhood statements and abstract generalizations. Not “I will be a successful freight broker someday.” but “I will be a 7-figure-income freight broker by December 20xx.” Create a vivid picture of your goal. Add explicit details. Don’t allow vagueness into your vision. This way, you’ll have an image of the end of the road so that when you get there, you’ll know in no uncertain terms that you’ve done what you’ve set out to do.

3. Your goals must be measurable.

A goal like “I will be a successful freight broker someday” doesn’t lend itself to tangible, quantifiable results. Just what does “successful” look like? How will you know you’ve been successful if you can’t measure it? Your criteria for success must not contain any abstract definitions but dates, amounts, and other measurement standards.

4. Set goals that are attainable.

What’s the use of setting goals when you don’t have any hope of achieving them? Spell out objectives that are doable. If you don’t have what it takes at the moment to accomplish what you’ve set out to do, then you must have a plan on how to acquire that knowing so you can go about reaching your targets. Guard against setting goals that are too easy though. Aim for something that will challenge you, not bore you.

5. The goals you set must be relevant to the direction that you’re aiming for.

It’s elementary to set goals to achieve your big picture but there are some who can’t differentiate between what’s pertinent and what’s irrelevant. There are freight brokers who get embroiled in goals that are not aligned with the brokering business. Ask yourself: Will this goal focus me on my end game or will it distract me and fritter away my energy from doing what’s necessary?

6. Set a deadline for achieving each goal.

When you have a deadline attached to a goal, you create a sense of urgency. You’ll be aware of the passing time and how much of your tasks you’ve completed. You can also adjust timelines or action plans accordingly. And you’ll definitely know when you’ve become successful because you have the finished benchmarks to show for it.

7. Write down your goals.

By putting hand to pen and pen to paper, you’re physically committing yourself to a goal. Brian Tracy says that a goal that’s not written down is no goal at all. A connection is forged between the hand and the brain when you write down and experts say you’re twice more likely to remember something you’ve written down than something in your mind. Just the physical act of jotting down a goal makes it real and tangible, enabling you to fix this picture of success in your mind much more easily.

8. Create an action plan detailing your path to success.

Some people look at their goals then freeze up. They’re overwhelmed at the enormity of the undertaking. Overcome this hurdle by breaking down your big goals into bite-sized pieces. Create an action plan with accompanying dates and milestones so you can move steadily towards your goal. The exercise will help you identify priorities and define what’s necessary, important and urgent, so you can manage your time and your energies must more efficiently.

9. Reward yourself for realized goals.

The best incentive to doing something is a reward because it speaks well to our emotional pleasure-pain hot buttons. When there’s something in it for us, we’re reinforcing good behavior—good behavior being working towards achieving what we set out to do. Your reward could be something as trivial as an hour in front of the TV watching a baseball game or something as extravagant as a ticket to the NBA championships.

10. Revisit your goals regularly.

Read the goals that you’ve written down daily, weekly or monthly. This way, you’re constantly aware of where you are and how close you are at achieving your aims. Review and refine, adapt and adjust where necessary to keep your goals or your action plans relevant and updated.

Setting goals is an important skill to acquire during freight broker training so that when you finally enter the sector, you can make a beeline to success. The path to freight broker success, they say, is paved with good intentions but unless you sit down, set goals in writing and specify your milestones, you’ll never know if you’re at the end of the road or not.

3 Legal Requirements to Become a Freight Broker

Freight brokers make sure that carriers deliver the goods to where they’re supposed to go. Because of this enormous responsibility and the potential for great economic loss should freight brokers fail to do their duty, the industry is regulated by the federal government.

Every freight broker wanting to enter the business has to satisfy three legal requirements to become a licensed property broker—the DOT official designation for freight brokers.

Freight Broker Authority

It’s the Federal Motor Carrier Safety Administration (FMCSA), an agency of the Department of Transportation, that receives and facilitates the application for and grants freight brokers the authority to operate. You’ll have to fill out the OP-1 form with the “broker of property” checked. Some of the information you’ll be providing includes your business name, contact information and a USDOT number. The USDOT number is not mandatory to being a freight broker but you need one so you can file an application with the FMCSA for a property broker license.

Once your freight broker application has entered the FMCSA system, you’ll be assigned a motor carrier (MC) number. The MC number will be instrumental in acquiring a surety bond, which is the second part of the whole process of granting you the license.

There are instances when FMCSA may dismiss your application for an operating authority. You may have stalled at some point and failed to complete the whole licensing process, surety bond information was missing, or some other information was lacking. Be mindful of these factors so you won’t have any headaches later on.

Freight Broker Surety Bond

You must submit proof of a surety bond before the FMCSA can issue an operating authority to you, filing a BMC-84 or BMC-85 form along with it. Usually, the surety bond is for $10,000 but depending on a credit and background check on you by the bonding company, this amount could increase.

Why the need for a surety bond? Although it’s not insurance per se, the freight broker’s surety bond guarantees that carriers are compensated for moving loads. If and when shippers default on this obligation, freight brokers will have to pay carriers out of pocket for services rendered. Freight brokers usually don’t have the available cash to settle this obligation so the bonding company will take on the role of creditor and settle the carrier’s costs up to the amount of the bond.

Legal Process Agent for Freight Brokers

Freight brokers have the one license granted by the federal government to operate across the nation but like any business, they need a point of contact to operate in individual states. This is where process agents come in.

Simply, process agents act as legal representatives for freight brokers in the states where the brokerage plans to operate. Should claims or other legal actions arise against the freight broker in a state, the process agent will be the legal point of contact or representation in the area. Instead of a single individual in each state, you might want to consider engaging the services of a law firm with branches in the states where you’ll be operating.

A freight broker will have to register these process agents for each state where the freight brokerage firm will do business. You’ll use the BOC-3 form (Designation for Process Agent) to list your legal representatives. Once the fee has been paid, FMCSA deems the application complete. Your operating authority should be issued within four to six weeks of submitting this final form.

Ultimate Guide to Being a Freight Broker – Role & Resposibilities

Freight brokers are the matchmakers of the transportation and logistics world—they match a shipper with a carrier in order to get any cargo from a point of origin to its final destination. If you’re out hunting for freight broker jobs, this job description will help you assess your work readiness.

Freight Broker Duties and Responsibilities

Generally, freight brokers have four main responsibilities:

  1. Ensure the safe passage of shipments from the shipper to the carrier through to the consignee.
  2. Prepare all the necessary documentations and reports involved in transporting cargo.
  3. Negotiate terms and rates, and settle all money obligations due your carriers.
  4. Find new customers and truckers, while making sure that current customers (both shippers and carriers) are happy with your service.

Drilling down to what these duties and responsibilities would translate to, the following tasks may be part of your daily routine as a freight broker:

  1. Work with shippers and carriers to arrive at a fair rate for a particular load, making sure that your commission is included;
  2. Search for carriers or truckers who will deliver your load to the consignee;
  3. Prepare all load information and other documentation required for each cargo (including bills of lading and in some cases over, short and damages reports—OS&D) using appropriate software and systems;
  4. Monitor load movement by keeping in constant contact with drivers and shippers to ensure that your shipment is en route and on time;
  5. When necessary, arrange for load storage;
  6. Troubleshoot problems that may arise during load movement;
  7. Confirm with truckers and consignees that your load has been delivered according to schedule and load information;
  8. Bill your shippers and pay your carriers on time, with supporting documentation;
  9. Create the necessary marketing materials to promote your business; and
  10. Network with individuals, companies, carriers and other stakeholders in your niche to develop new business.

Keep in mind that your objective is to get that load where it’s supposed to go. Once any shipment leaves the customer, it becomes your primary responsibility. That load has dollar values attached to it. The key to your freight broker success is in making sure that the shipper doesn’t lose the money riding on that load.

Freight Broker Qualifications

Freight brokers are essentially entrepreneurial by nature. They have to be so as to succeed in such a fast-moving, highly demanding industry. The following skills and qualifications will give you an edge over the rest of the competition:

  1. Highly organized. Many things are going on at once so you’ll have to know what’s going on where without breaking stride. That means everything’s in its proper place, you know where everything is, and you know how to access and obtain tools and resources to do your work fast.
  2. Decisive problem solver. Problems can happen anytime the load is between the shipper and the consignee. You must know how to troubleshoot these headaches swiftly and when needed, be quick to do damage control to prevent losses.
  3. Good people skills. Negotiating rates with shippers and carriers, networking with relevant individuals and organizations in increase business, solving load problems, and keeping your customers happy means you know how to engage people and create lasting relationships. How well you relate with others can spell the difference between your freight brokerage business’ failure and success.
  4. Effective time management. With all the tasks that you need to complete before the day is over, knowing how to make good use of the time that’s available to you can help you create a reputation for punctuality and reliability.
  5. Efficient multitasking abilities. Between finding shippers, looking for carriers, writing loading information, filing reports, calling people to track moving loads, negotiating rates, maintaining cash flow and a million and other things that are clamoring for your attention, knowing how to juggle things at the same time and doing it right the first time will be valuable skills. Learn how to identify the tasks that are important, urgent or low priority so you can maximize productivity with your limited time.
  6. Computer proficiency. Computers and software applications will facilitate the grunt work, cash management, reports, documentations and many other clerical tasks so it’s vital that you know your way around this equipment. That includes the ability to make good use of the Internet to find new customers.

Freight Broker Education

Whether you’re fully employed or work in a large logistics company, being a freight broker means you must at least have a high school diploma or a GED. To add to their know-how, aspiring freight brokers attend reputable freight broker training schools. Others work with companies who conduct one-day training seminars or apprenticeship programs to gain a solid grounding in the ins and outs of freight brokering.

While you’re looking for freight broker jobs, continue to refer to this freight broker job description to determine what skills you already have and what you need to acquire.

Freight Broker Jobs: 9 Ways to Find Work LinkedIn

Looking for freight broker jobs? The next best, and most powerful, tool you can use—after friends you have developed in freight broker training school—is LinkedIn, the social networking site for business
professionals.

Last year, one in six people found new jobs from contacts on social media sites. Only a few though were able to maximize the potential that LinkedIn provided for job hunters. Don’t be like them. Here are nine ways LinkedIn can put your freight broker job hunting on steroids:

1. Complete an awesome freight broker profile on LinkedIn.

Hiring managers continually scour LinkedIn for potential new hires. Put your best foot forward by giving them what they’re looking for. Create a profile that not only contains your educational history or professional background but uses such industry keywords as “freight
broker”, “logistics”, “transportation”, “trucking” and the like. Place them in strategic areas like your profile description, summary of qualifications, work history, and job descriptions.

2. Actively start building your network of other freight brokers, transportation executives and industry honchos.

Connect with people in the logistics and transportation industry regularly. Take advantage of LinkedIn’s search tool to find like-minded people then introduce yourself and why you want to connect. When you interact with them, think: “What can I do for this person?” NOT “What can this
person do for me?” A word of caution: don’t spam or stalk. Real world etiquette still applies on LinkedIn otherwise you’ll turn off people who can help you find your next freight broker position.

3. Utilize the job search tool in LinkedIn to find freight broker jobs.

Under the Jobs category on the top navigation bar, there’s the Find Jobs page. Key in the position you want. For example, use “freight broker,” “freight agent,” or “property broker” as keywords. In the results page, you can refine your search further: by location, by relationship, or by company.

4. Take advantage of the “Companies in your network” link on LinkedIn’s job search page.

If many of your connections work in the freight brokerage industry, chances are their companies are also listed on LinkedIn. They may have openings for freight brokers that are sitting quietly on their company’s profile page, just waiting for you to apply.

5. Tell your network you’re looking for freight broker jobs.

On LinkedIn, it’s common to ask your connections for leads to job openings in their companies. Tap into these as well as the connections of your contacts. Ask to be introduced to their friends who may have job openings in their workplace. Your new post as a freight broker in a respected logistics company may just be in the company of one of your connections’ clients.

6. Ask colleagues (old and new) for recommendations.

LinkedIn allows freight brokers and agents you’ve worked with to write recommendations for you. These references naturally focus on your strengths and capabilities so hiring managers who’re on the lookout for your skills will surely see it.

7. Follow companies where you want to work.

Search for companies in the industry. They may be looking for freight brokers with your particular knowledge and expertise. Follow these companies to get updated on their activities, new hires and openings. Also, check if you have contacts working in these companies. If you have friends working there, forward them your resume and ask them to refer you to their hiring managers. And if you have the guts for it, interview the employees to get an insider’s look on how they got hired.

8. Join Groups and start participating in discussions.

Groups work much like a regular forum and they’re categorized by interest or industry. Again, use LinkedIn’s search tool to find Groups fit for freight brokers. Answer questions, post industry-related news, ask others to clarify things, and lend out a helping hand. Sometimes group members also post job openings. As you help, you’re building your authority when that job opportunity comes, you’ll be first in their shortlists.

9. Utilize the Insights tab in Company Profiles.

Insights show the connections of that company’s employees with the employees of other companies in the industry. Often, these companies reflect where freight brokers in their employ have come from and where they’re going to. This is another lead for you to see which companies are in need of freight brokers like you.

Use one, two or all of these strategies to finding your next freight broker job. The chances of you landing on a potential employers’ shortlist of candidates are higher than when your LinkedIn profile’s just there for the sake of being there.

10 Top Reasons Why You Should Become a Freight Broker Today

The job outlook for a freight broker these days is exciting. It’s the fastest growing occupational category in the transportation industry, the highest at 29% compared to all other occupations.

With an improving economy and the increasing preference for online shopping, freight brokers are ever in demand.

If you’re still sitting on the fence about freight broker training or shifting careers, here are the top 10 reasons why you should become a freight broker today.

 10. Freight brokers can be totally independent.

When you’re a freight broker, you call the shots. You can choose to start as a one-man operation or, as you grow, you can employ one or two employees to help you keep track of everything. Either way, there’s no boss breathing down your neck while you’re on the telephone speaking with a customer. You make the decisions, not somebody else.

 9. Freight brokers have more time with their families…at home.

If you’re a truck driver, being on the road 6 days out of a week can get old, fast. Sure you get to see different places but you don’t really have time to see the sights. All you’re concerned about is getting from point A to point B in the shortest possible time or you lose paying customers.

As a freight broker, you set your own working time so you’ll have more hours spent teaching junior how to catch a football, having weekly date nights with your significant other, or even going on honest-to-goodness sightseeing trips.

 8. Freight brokers earn more, especially if they have their own trucking company.

You probably know the freight industry better than the palm of your own hand. More importantly, you have an industry network that’s worth hundreds of thousands of dollars. Take advantage of this database of shippers and carriers. Add a freight broker service to streamline your trucking operations, improve customer service, and keep the commissions to grow your business rather than letting other freight brokers cut into your revenues.

 7. Freight brokers have 60-second commutes.

It’s the ultimate fantasy of those earning for a living: working from the comforts of your own home. Lunch is served hot and enjoyed for an hour, not on the run. And there’s only a one-minute walk to the fridge for some mid-afternoon energy boost. No time wasted getting stuck in an hour-long, traffic-riddled commute. Plus, you can sleep in on some days. What’s not to like?

 6. Freight brokers have low start-up costs.

Provided you have a good credit standing, you’ll need less than $3,500 to get started on your freight broker career–from freight broker training and licensing to setting up shop. Some of the freight brokers we’ve known began their lucrative careers with the dining table doubling as their work space. You have the flexibility of starting bare bones or dressing up your work area however you see fit. You’re the boss, it’s your call.

 5. Freight brokers spend as little as $400 monthly on their overhead expenses.

If you’re a one-man operation and you work from home, you’ll often find yourself saving dollars on overhead. Your time will be spent mostly on the phone–negotiating with shippers and carriers, researching and tracking shipments.

 4. Freight brokers earn as much as they want.

This is a booming industry and the only limit to your income is your commitment to success. There’s plenty of business to go around, especially with ecommerce flourishing. Shippers are sending out goods from warehouses and distribution centers more and more and this can only mean one thing for you: more opportunities to earn.

 3. Freight brokers have an ever-expanding universe.

The more your freight brokerage business is growing, the more you’re shoring up your smarts in the industry. And the more you’re building up your leadership, the more you’re acquiring new industry contacts who work anywhere from Seattle to Yonkers. Your universe as a freight broker is expanding exponentially…and so is your income.

2. You’re freight broker career is the start of a stable family business.

Once you’ve achieved success as a freight broker, there’s nowhere to go but up–including a robust business where the rest of the family can get involved. Your children can start learning the ropes; you can begin employing people you trust; and your business can end up becoming one of the valuable businesses in your state! The possibilities are endless.

1. Your freight broker career is a priceless legacy.

A viable family-run freight brokerage company is a valuable asset that can take care of your family for generations–whether they continue to run it or sell it at top dollar. It’s a positive win on all sides.

Clearly, the future for you is bright. Become a freight broker today!

Property Broker – Responsibilities of a Freight Broker

Have you ever been curious about what freight brokers and agents actually do? A property broker, otherwise known as freight broker, serves as the middleman between the company needing to transport their goods and the motor carrier wanting to provide the delivery service. A property broker or freight broker carries a very important responsibility in the transportation industry.

Among the main responsibilities of a property broker include searching for carriers that have the capacity and capability to meet the demands of manufacturers or shippers. With increasing outlay in transportation and a shortage in the number of carriers nowadays, becoming a licensed property broker or freight agent is a great choice for potential lucrative occupation.

Major Responsibilities of a Freight Broker

Freight brokerage is fast-paced, interesting and always in demand. It connects the transporter and the receiver with secure services to sensitive cargo or important goods. Since there are instances that require special delivery service for bulky, fragile, perishable or hazardous freight, the need for a qualified freight broker is very important.

One of the responsibilities of a property broker is to guarantee that he will find a suitable carrier for particular goods. A lot of factors and options when making a decision for a shipping company must be considered especially when transporting heavy loads. Matching the kind of cargo and the carrier is very important for safety and security.

Most of the time, a company will call a freight broker to transport goods immediately. With trusted list of agents and carriers ready to assist manufacturers for the shipment of their products, a property broker usually spend his time talking over phone. He can do the transaction via phone calls.

When dealing with manufacturers and carriers, a major factor being considered by brokers is the cost of delivery. Foods, clothes and different products we buy in the market are being delivered by shipping companies. The importance of these goods reaching our homes matters most not only to manufacturers but also to the person behind the shipping or delivery.

Freight Brokerage and Freight Brokers

Freight brokerage does not only aim to deliver us our basic commodities. Just like any other profession a property broker’s job is difficult if you do not know the basic knowledge and terminologies in the business. The responsibilities of a property broker should not be mistaken with the job description of a freight forwarder.

Although freight forwarder training can also be beneficial to brokers, freight forwarders are individuals who receive and store the goods for shipment. These are just two careers in the freight brokerage business that an individual can consider if he wants to get a good income.

Indeed, freight brokers are helping to assist companies in finding the right carriers that have a strong platform of experience in transportation. Their responsibility to bring us all the necessary commodities makes property or freight brokerage an ideal career even to those who do not have a college diploma.

Freight Broker Agent – Job Description of a Freight Broker Agent

Freight broker agents have great opportunities and virtually unlimited earning potential in the transportation industry. The primary duty of a freight agent is to coordinate with the company that needs trucking services for their cargo. Since many businesses are involved with transporting their goods, hiring a freight broker agent to assist a company in the entire process of shipping turns out to be more affordable than employing a full-time personnel.

The Work of a Freight Broker Agent

The job description for freight brokers and freight agents are almost identical. In fact, most successful brokers started as agents. Same thing with the broker’s job, freight broker agent is the one to contact manufacturers or shippers to get the cargo. He also calls the trucking companies to take the goods and prepare the documents needed for the shipment before forwarding to his broker to process the payment.

For those not familiar with freight brokerage, let’s look at an overview of a freight broker agent’s job. Their main objective is to ensure that incoming and outgoing shipments are done properly and timely. They look for credible shipping company that caters their needs and meets their requirements. Since they are in charge with the transportation of goods, they are responsible for determining the most expedient route.

There are just few differences between freight broker and freight broker agent. They are both individual contractors who operate and earn their income from the sale of brokerage services. However, freight agents are working under the protection of a broker’s license, insurance coverage and surety bond. Since a freight agent work without financial risk, he must share his earnings with his sponsoring broker.

Freight broker agents mostly do transactions over the phone or the internet and they rarely come into actual meeting. They just have to make sure that they hire credible people for the delivery of cargo and take consideration on the affordability of the carrier.

Why Do Companies Hire Freight Broker Agent

No matter how slapdash the economy, commodities are still in demand and need to be transported to the market. The increase for the delivery services is very evident. Even with high amount of transportation expenses, manufacturers still have to make sure their products are delivered promptly to different places. There are numerous motor carriers willing to ship goods provided that they agree upon the deal with a freight broker or freight broker agent. Since most manufacturers are looking for carriers to haul their products in a safe and affordable way, they choose to hire a freight agent to handle the operation with the delivery company. This procedure is much easier for them than hiring a workforce to assist them when they need service for the cargo.

Freight broker agent has significant responsibility. It requires a formal training and good set of contact lists to be successful.

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