How to Become a Freight Broker Agent
When a company needs cargo transported by truck, a freight broker agent coordinates the process as a third-party intermediary. For companies, otherwise known as shippers, it's more cost-effective to use a freight broker agent so they don't have to employ full time staff for the purpose. For trucking companies, they get enough cargo to keep their trucks full.
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Things You'll Need
- Computer with Internet access
- Printer
- Telephone
- Fax machine
- Contact list of shippers and trucking companies
- previous cargo industry work experience
Instructions
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First, get some initial work experience in the cargo industry, working for a shipper or a trucking company. After one or two years, you can then get work as an independent contractor agent in an existing freight brokerage.
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Develop an extensive contact list. Talk with truckers to find suitable partner trucking companies. Call or network with shippers to establish an ongoing business relationship.
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Build your reputation and expertise by focusing your freight broker business on a specific segment. Some specializations include heavy/oversized loads, livestock, agricultural products and refrigerated /perishable items. Other freight broker agents can focus on a particular city, state or regional area.
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Find out your shipper's needs, such as their cargo, the pickup and delivery time and place, and the truck type. Talk to shippers on your contact list early every morning to find out what trucks they need for that day.
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Take the shipper's order if they say yes. Agree upon your commission rate. Check loading boards on the Internet every morning.
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Look for reputable trucking companies that are suitable for the cargo and are available. Search the Internet, loading boards or specialized directories. Sign broker agreements with several partner trucking companies.
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Fax a contract with all the details to a trucking company on your contact list. If they agree to take the load, then they will sign and fax over the paperwork.
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Contact the shipper and tell them the load is scheduled for delivery. Make sure all the cargo is delivered on time and reschedule any loads that may be delayed. You might need to call in and check on the driver as well.
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Call the shipper to tell them the cargo has been delivered. Pay the trucking company and then send an invoice to the shipper for your charges.
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Tips & Warnings
Owning a freight brokerage firm is more involved than working as an agent. You need excellent credit to get loans to pay the trucking companies on time. Proper insurance, bonds and licenses would also be your responsibility.
Check with Better Business Bureau or get references to ensure the shipper or trucking company is a good business partner.
Resources
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Comments
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mrsdiesel
Jun 09, 2010
The shipper and broker deal with the bill of exchange the the carrier the bill of lading got to go drive Ill be back -
mrsdiesel
Jun 09, 2010
the load that is the commodity source is intrusted to a person or company could be the shipper in most cases then is given to the lucky broker the cheapest. Oh ya and you will be known around as the cheapest and feel the hate. there are thousands of brokers who beg shippers for loads If your contract is ecepted you would have learned the ropes you auction the load or put it on load boards or sell to common carriers or a broker this is against the law but wake up. The shipper has the contract but you can have one also word to wise have a lawyer do it. These people are bottom dwellers they will make a man out of you honest people this is not a job for you
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mrsdiesel
Jun 09, 2010
Get a good understanding of who you work with whb you are working with and where thier job ends and yours begins.
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mrsdiesel
Jun 09, 2010
First of all not true. There is no set limit to being a broker just visit FMCSA website and call a rep for help otherwise click on Regester with help its 300 dollars and then you get 3 months leeway to get a trust bond or surety bond in the anmount of 10,000 which buys your coverage, that money 10,000 can be made in monthly payments over a period of one to two years depends on who you pick. If your credit is good that will work also to be put up instead of money. Its easy my broker made 5 million dollars in 3 years dont belive the bull you will get rich I would do it but im a fat 300 puond slob truck driver who no one will do deals with It does matter how you look if your ugly give it up its a cruel world
