Freight Broker Definition
A freight broker is not a job that many people know or understand. While this may be the case, the freight brokerage business could be a very lucrative one.
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Identification
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A freight broker is someone who finds an auto carrier for a shipper that needs to transport goods. While this sounds easy, the size of the motor freight industry is overwhelming.
Features
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Freight brokers are considered transportation intermediaries, which means they are a third party and do not have a stake in either the shipping or transportation company.
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History
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The freight brokerage business has been around since the early 1900s. Up until the 1970s regulation was restrictive, which kept many people out of the business; however, since then, this has changed, and it is now easy to access the industry.
Considerations
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The freight brokerage business is all about contacts, and freight brokers recommend working in the industry, either shipping or transporting, before getting into the business.
Benefits
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One of the benefits about starting a freight brokerage firm is the fact that the start-up cost is very low, considering you will only need an office, a computer and access to the Internet. The most important factor is human contacts.
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References
Comments
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You need more than an office, a computer and internet access. You will need FMCSA operating authority and a surety bond to begin with.
