| Freight brokers act as intermediaries by arranging for | | | | boards where loads are posted as well as searches |
| the transportation of cargo between shippers and | | | | for trucks that may be done. |
| motor carriers. The freight broker then receives a | | | | 5. After these loads have been posted, the broker |
| commission for his or her matchmaking skill. Freight | | | | will then go to his or her database of available trucks. |
| brokers are also known as truck brokers, | | | | The broker will then call each carrier to see if they |
| transportation brokers, property brokers and 3rd | | | | have a truck available. In the meanwhile, the broker |
| party intermediaries. | | | | may be receiving incoming calls from individuals who |
| While the business concept in freight brokering is | | | | are responding to the posts on the loading boards. |
| very simple, there are many details and procedures | | | | 6. At some point, the broker is looking for the driver |
| that need to be mastered. The broker needs to | | | | or dispatcher who will say, "Yes, I want the load". |
| know what to do, when to do it, how to do it, why | | | | Sometimes the broker will not find a truck. This is not |
| it's being done and with whom to do it. Since this is a | | | | like shooting fish in a barrel; however, with |
| service-oriented business, it only makes sense to | | | | experience and by earning repeat business, the |
| learn the multitude of demands and requirements. | | | | broker will "cover" more and more loads. |
| Especially in light of the fast-paced environment that | | | | 7. After the broker gets the "Yes" from the carrier, |
| becomes more and more common. | | | | he or she then immediately calls the shipper to tell |
| While actual "on the job" experience is the best | | | | them that the load is "covered". |
| teacher, formal training by qualified individuals helps | | | | 8. The broker will then fax their set up package to |
| pull everything into perspective for the beginning | | | | the carrier. While the carrier is processing the papers, |
| broker. As a result, the new broker strikes out on a | | | | the broker will check out the carrier to make sure |
| note of confidence. | | | | the carrier is properly authorized and insured. This is |
| Having said this, let's take a look at a typical day in | | | | done either on the internet or telephone. |
| the life of a freight broker. | | | | 9. The last item sent to the carrier is the |
| After the freight broker has placed many prospecting | | | | "confirmation". The carrier should immediately sign and |
| phone calls and contacted as many current potential | | | | date this document and fax it back to the broker. |
| shippers as possible, he or she should have perhaps | | | | 10. Once the broker has this confirmation on hand, |
| 20, 30, 40 or more shippers in their database. The | | | | the broker will want to call the truck driver if the |
| initial information that each broker will collect will be | | | | driver himself hasn't called the broker. The details of |
| general in nature: what type of cargo is the shipper | | | | the load are then given to the driver along with any |
| shipping, where are the normal pick up and deliver | | | | instructions. For example, the broker will ask the |
| points, what kind of truck is required and so on. | | | | driver to call when they get loaded and when they |
| 1. With this information on hand, the broker will want | | | | get empty or if there is any problem. The broker will |
| to start asking for the order by placing phone calls to | | | | also ask the driver to call in at least every morning if |
| shippers early in the morning - perhaps from 7:30 a.m. | | | | it is a multi-day trip. These are important |
| to 10:30 a.m. This is when most shippers are putting | | | | requirements that each broker should be ready to |
| the final touches on their needs. Basically, the broker | | | | enforce and penalize if there is a blatant disregard by |
| is asking if the shipper is looking for any trucks on | | | | the driver. |
| that particular day. | | | | 11. After the load is delivered and the carrier has |
| If the answer is "No", the broker goes on to the | | | | reported back to the broker, the broker will want to |
| next and the next. At some point, the broker hits a | | | | call the shipper to let them know of the status. |
| "hot" one (or several) and that's when the action | | | | 12. Any problems on delivery which may include |
| begins. | | | | missing pieces or damaged cargo should be dealt with |
| After the broker has "proved" him or herself, the | | | | between the shipper and carrier. Sometimes the |
| shipper will actually initiate calls to the broker instead | | | | broker will intervene; however, the broker is never |
| of the broker always calling the shipper. And the | | | | liable for any damage or missing pieces unless the |
| shipper may want to work more proactively by | | | | broker is negligent. |
| looking for trucks 3-5 days out instead of just on a | | | | 13. Lastly, with the load delivered safely and in a |
| day-by-day basis. | | | | timely fashion, the broker is ready to do the process |
| 2. The next step is to take the order from the | | | | over and over again. |
| shipper. The shipper will go into detail on what is | | | | While this routine may seem casual and boring at |
| required. Any uncertainties that the broker has should | | | | times - this is hardly the truth. Most of the time the |
| be cleared up immediately. It's imperative that the | | | | broker will experience smooth going. However, there |
| broker communicates the correct information to each | | | | will be times when problems will arise. Late deliveries, |
| caller when they start calling in. | | | | failure of the carrier to pick up a load, damaged |
| 3. Then the broker will either work up an estimate of | | | | cargo or missing pieces, long delays in picking up or |
| what rate is needed and they'll get back with the | | | | delivering cargo - all of these need to be dealt with |
| shipper; or the broker will ask the shipper what they | | | | by the broker. |
| want to pay. After some calculations the freight | | | | It is impossible to avoid problems, but it is possible to |
| broker will come up with an amount that they will | | | | stay alert and ready to deal with problems |
| offer to the truck. The ideal starting point is to get | | | | proactively. If the broker works hard and works |
| at least a 10% profit margin on each load. | | | | smart for the shipper, if the broker deals honestly |
| 4. The next step is to post these loads on the | | | | with the truck and pays them on time - the broker is |
| internet loading boards. There are numerous loading | | | | well on his or her way to a successful venture. |