FREIGHT BROKER BUSINESS – WHAT YOU NEED TO KNOW AND WHY!
By: Maria Suzettis
First of all, to point out something to any readers who are new to or unfamiliar with the trucking industry. Everything you eat, drink, wear and use comes on a truck. These men and woman who has made this their professional make many personal sacrifices to supply and delivery us with products we use on a daily basis. They spend so much time away from family, they miss their children growing up, end up in divorces and sitting so much it messes up their health sometimes.
So many drivers wanting off the road due to some of these issues want to learn about the freight brokerage business, but no one will share the information with them. You’ve asked again and again and no answers. Well, I have some important information for you.
The freight broker industry is one of the best kept secrets out there. It is a three trillion-dollar, business and trucking will never stop. You may have thought that the only way to get into this business is to know someone in this business or have a password. Well, your partly right, knowing someone in this business does help, but there two ways to get into this business. You can be either start off as a "Freight Broker Agent" and learn the business under a Freight Broker or go on if you choose to become a full “Freight Broker”. We are a beginner's course to learn the basics of how this industry works, and it doesn’t matter if you were a truck driver or just interested in this industry.
You just need to understand who to talk to, what services are available, where to locate shippers and carriers, and we’re here to help you with all of this. As a broker agent, we will explain how to work under a freight broker. What to look for before signing onto a Freight Brokerage Company. If you decide personally to go on to become a Freight Broker, we will explain what licensing's you will need to get started. We’re here to help you take the next step of learning.
As a full “Freight Broker” you keep all the monies earned that you negotiated between the shipper and the carrier. (Example: Shipper pays $5,000 for load and you get a carrier to haul it for $4,500. The $500 difference is yours to keep). The freight broker carriers the license, bonding, etc. and is 100 % responsible to pay the carrier.
As a “Broker Agent” you keep a portion of the monies earned that you negotiated between the shipper and the carriers. (Example: Shipper pays $5,000 for load and you get a carrier to haul it for $4,500. The $500 difference. If you have a 50/50 split with the freight broker, you get $250, and the freight broker gets the other $250 for using their license). Brokers pay different percentages.
If you really want to get into this business, educate yourself and ask questions. Now most freight broker agent schools will not give too much information, but they should answer basis questions. Check to see how many years they’ve been in business and do they have references. Also, before going into this industry, learn the rules, laws and regulation if wanting to become a freight broker and not start as an agent for a freight broker. It's always best to start as an agent to learn how this industry works. We do supply leads on freight brokers looking for agent.
Here's the F.M.C.S.A. booklet to read: Freight Broker Information
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