What is a Freight Broker?
Entrepreneur Magazine has rated the freight brokerage business as one of the top home-based businesses to own and a recent Wall Street Journal article cited freight brokering and logistics as the largest growing sector of the transportation industry.
Whether you’re already in the industry or beginning a blazing a new career path, freight brokerage is a great choice.
Nearly 71% of all the freight tonnage moved in the U.S. goes on trucks. Without the industry and our truck drivers, the economy would come to a standstill.​
Transportation is critical to economic and social survival, so there will always be a need to transport products no matter the state of the economy
The freight business involves the transportation of goods and materials and is a very large industry.
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Freight brokers are filling in a crucial role in the movement of freight, as the missing link between shippers and carriers. They negotiate good shipping rates and fast deliveries from transportation companies, and connect them with the businesses that need to transport goods or cargo, so carriers can maximize their loads.
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Besides acting as an intermediary, brokers have an important function in the tracking of freight, as they keep thorough records of pickups and deliveries, and other information. They also oversee the legal part of the transportation, as they need to be experts in shipping regulations and procedures.
Brokers are the ones who make sure that each step of the transportation process occurs, so that the freight arrives safely to its final destination.
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Our transportation industry program will provide you with the knowledge and resources needed to break into the shipping industry. From transportation law, contracts, and insurance, to setting up and running your own business, this is the best freight broker training available.
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Whether you want to start your own brokerage business, enhance your current job performance, or simply gain additional insight into the logistics industry and increase your income our course packages are great for anyone wishing to learn about the brokerage industry.
A FREIGHT BROKER VS A FREIGHT AGENT
As a licensed freight broker is someone who assists shippers with freight ready to haul by finding carriers who are qualified to haul the load.
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They are responsible for brokering deals with shippers and then facilitating the movement of a shipper’s freight. They are responsible for keeping a line of communication open with the carrier in order to update the status of the shipper’s load. They make it easier for shippers to find quality carriers that are proven to be reliable in hauling a load.
Brokers are the ones who make sure that each step of the transportation process occurs, so that the freight arrives safely to its final destination.
FREIGHT BROKER
FREIGHT AGENT
Due to these requirements, logistics professionals often turn to a position of lesser responsibility as an independent freight agent.
A freight agent is an independent third party that facilitates the exchange of services for compensation between entities that ship materials, and the carriers that haul them.
As an agent, you are not required to have a license and do not assume any risk of the client’s creditworthiness. You also are not required to have a bond, since your broker would be the one responsible for collecting/administering payment.
How much you earn depends on whether you choose to become a Freight Broker or an Agent in this industry. Your level of success depends on many factors, such as your level of determination, your tenacity, and your genuine desire to help your customers succeed.
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Freight Broker Earnings Example: Let's say a Shipper is willing to pay you $5,000 for a load - and you then locate a Carrier/Driver to haul the load for you for $3,800. The profit is: $1,200. This is all yours to keep!
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Freight Agent Example: Let's say a Shipper is willing to pay you $5,000 for a load - and you locate a Carrier/Driver to haul the load for you for $3,800. The Profit is: $1,200. As an Agent you have to split this profit with the Freight Broker, due to the fact you are using their license, bond, etc. Usually, Agents receive 60-75% of the $1,200 Profit.