| The industry: | | | | needed to maintain equipment, pay personnel and |
| Freight brokers arrange for the transportation of | | | | make a profit can make the difference of making it |
| cargo between shippers and motor carriers. Nearly | | | | or breaking it. |
| everything you touch throughout a given day has | | | | Consequently, a freight broker is required to use |
| been transported by a motor carrier. The industry is | | | | good negotiating skills to complete a "competitive" |
| enormous. Most cargo is shipped with either a dry | | | | transaction whereby everyone is satisfied - shipper, |
| van, a refrigerated unit (reefer) or a flat bed. Cargo | | | | carrier and broker. |
| is shipped both within local markets as well as long | | | | What brokers are looking for: |
| distance and coast to coast. | | | | Brokers may first locate shippers who have cargo to |
| Freight brokers, then, seek, identify and get set-up | | | | ship and then look to motor carriers to "cover" the |
| with shippers, manufacturers, growers and | | | | load. Or brokers may have motor carriers on hand |
| distributors who have cargo to transport and who | | | | who are seeking cargo to haul. In either case, the |
| rely upon freight brokers to find motor carriers. | | | | broker wants to make a match or cover the load. |
| Motor carriers may be either large trucking companies | | | | Initially, a broker will spend many hours on the phone |
| who hire their own employee drivers; or carriers may | | | | searching for both shippers and carriers. With |
| be independent drivers (Owner Operators). | | | | experience, however, a broker learns to work pro |
| A freight broker derives a commission for their | | | | actively where both shippers and motor carriers |
| matchmaking skills. Freight brokers are also known as | | | | initiate much of the business. |
| "truck" brokers, "transportation" brokers and | | | | This of course all depends on how well the broker |
| "property" brokers. And the brokerage industry can | | | | performs. Getting both shippers and carriers to rely |
| span not only trucks but air, rail and ocean liners. | | | | upon them is one of the primary objectives of the |
| Freight brokers are governed by the Federal Motor | | | | broker. This is when business starts to mushroom. |
| Carrier Safety Administration (FMCSA) of the | | | | When brokers get set up with shippers the broker |
| Department of Transportation (DOT). There is no | | | | may need to do a credit check to avoid getting |
| governing body other than these. There are no tests | | | | stuck with a poor paying shipper. |
| given to pre-qualify freight brokers. | | | | And before brokers work with carriers, the broker |
| What shippers are looking for: | | | | needs to pre qualify carriers. A carrier may be ready, |
| Shippers are working within cost constraints. They | | | | willing and able to complete a haul; but the broker |
| often set the rate as to how much they will pay. | | | | needs to document the carrier's status - legal, |
| Supply and demand sometimes dictate how much | | | | insurance and operational. |
| particular loads are paying. Shippers are looking for | | | | Summary: |
| carriers who will move their cargo safely, efficiently | | | | The business concept, then, is simple enough - a |
| and cost-effectively. And they are looking for | | | | freight broker finds shippers with cargo, then finds |
| brokers who conduct business honestly, reliably and | | | | carriers to transport the cargo and then makes a |
| with an excellent service-oriented mentality. | | | | commission for making the match. |
| What carriers are looking for: | | | | Freight broker opportunities and benefits offer work |
| Carriers are looking for good rates. They also work | | | | from home, low start up and overhead expenses, |
| within cost constraints. If motor carriers are | | | | and minimal formal educational requirements. Tools of |
| knowledgeable about what their operating costs are | | | | the trade consist of a computer, fax machine, |
| it helps them remain competitive. Knowing what is | | | | telephone and file cabinet. |