How to Find a Freight Broker

Truck stops have load boards that list broker contact information.

Motor carriers use freight brokers to locate freight in an area where they have no direct shippers. Shippers will contract with brokers to find carriers to haul their freight because it is easier to contact one or two brokers than to have to find multiple carriers. It is crucial for your business to find brokers who are trustworthy and honest because the broker pays the carrier not the shipper. Do not expect great rates from a new brokerage, but if you consistently pick up and deliver on time for them, you will receive better rates on future loads

Things You'll Need

• Yellow pages
• Internet
• Phone
• Fax machine

Instructions

1. Sort your outbound loads by destination and delivery. This will let you see where and when you will need a load at a glance.

2. Post your available equipment on load boards (see Resources), where brokers looking for trucks will see your contact information. Make sure you post your equipment type and approximate time available.

3. Call brokers in the area that you have trucks. Internet yellow page services will help you locate brokers in the area.

4. Call brokers and advise them of your equipment in the area. A broker that you have not used before will ask you to fax your operating authority, insurance agent contact information and references. The broker will fax you back his operating authority, references and contract.

5. Read the contract carefully. Line out and initial any passages that you do not agree with and fax it back, advising of any changes. Before you pick up a load for the broker, make sure that you have the contract back with the broker's signature accepting the changes.

6. Check the broker's references. Be sure to ask about length of time to pay and if the broker has been difficult to work with on issues like detention and unloading pay.

7. Confirm the broker's authority to legally tender freight. The FMCSA Licensing and Insurance site (see Resources) will provide broker information such as whether his authority is valid and if he has the proper bond in place. The bond provides recourse for carriers if the broker does not pay transportation charges.

Tips & Warnings

• You may be able to negotiate payment terms with the broker regardless of the normal payment schedule. Ask for partial or full COD to help cover fuel costs and mitigate losses in the event that the brokerage goes out of business before payment is due.

• If you make changes in the broker's contract, she may not accept you as a carrier.

References

• FMCSA Department of Transportation: FAQ's What are the Definitions of Common, Contract, and Broker Authority?

Resources

• CH Robinson: Find a Load
• Freightfinder: Free Load Search
• J.B. Hunt: Loads
• FMCSA Department of Transportation: Licensing and Insurance