Freight Broker Agent – Tips on How to Become a Freight Broker Agent

As a third party intermediary, there are certain things to accomplish before becoming a freight broker agent. Here is the list of the things you have to remember and carry out to jumpstart your career in the freight brokering business.

Freight Brokering and Freight Broker Agents

  1. Experience in the transportation industry and working for manufacturer or trucking company is a natural first step. You will gain sufficient information and understanding about the whole operation if you have experience in the industry.
  2. Freight broker agent training and freight broker books available online will provide knowledge and strategies for marketing, sales, operations and licensing in the transportation industry. Taking advantage of online classes will help you practice and learn the fundamentals of the business.   Parallel to in-classroom training, you can obtain the overview of the career and the regulations surrounding the industry.
  3. Having strong communication skills is a plus factor to become a successful freight broker agent. You have to develop a far-reaching contact list. Having a network of shippers and truckers can help you build your customer base. By talking to them, you can establish a constant business relationship.
  4. Establishing a good reputation and proficiency in the field locally is also important. You can geo-target your business by focusing on a particular region or city. You can also evaluate the market demand for specialized services like heavy loads, perishable goods or fragile items.
  5. You have to discover your shipper’s needs and desires. Make sure you know how to cover all the bases with prospective customers by being thorough. Pay close attention to all the details like the time and place of pickup and delivery, method of transport, etc..

Tips for Freight Broker Agent on Handling Tasks

  1. Once the company hires you for assistance, you can then talk about your commission fee. You can check loading boards online each morning.
  2. Find a trustworthy trucking company that offer suitable services for the goods. You can also have agreement with various trucking companies to be your partner.
  3. You can send a contract to the trucking company containing all the information. They will need to sign off and send it back once they agree to take the goods.
  4. You can then call the manufacturer or shipper to let them know the schedule of pickup and delivery. Just make sure there will be no delays on the shipment by staying in touch with the driver to ensure everything is progressing well.
  5. Inform the manufacturer or shipper immediately when the goods have been delivered. You can pay the trucking company for the delivery service then send an invoice to the manufacturer or shipper for your fees.

You can be more occupied if you have your own freight brokerage company than working as freight broker agent. You must have excellent funds or good credit score to get loans that you may need to run the company. You have to pay the trucking service promptly. Insurance, bonds and licenses are also your responsibility.

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.