What is a Freight Broker?
A freight broker is the person or entity that has authority to arrange for the transportation of a shippers goods without ever having physical possession. A freight broker is the middle man in the transportation of goods. Often simply called the broker by drivers when they are not being called crooks, leeches and worse,lol. The name recognized by the feds on the books is actually property broker.
Why do freight brokers get a bad rap? Well, there are a few bad apples that causes that problem with slow pay to drivers (already struggling owner operators usually) and excessively low rates in certain lanes. Brokers can set the percentage they will charge for arranging freight. If a brokers want to gouge a trucking company that is in an area where there is no other chances of getting load out he/she can. Usually they don't get crazy about that, but as I said there are bad apples as in any job.
There are also some unhappy and unrealistic drivers out there responsible for the rhetoric. Why? Because freight brokers actually does important work and provide a necessary function for many trucking operations. THEY SHOULD get a small cut for the work they do, how else could they exist to provide the service? If the you didn't need them you would not use them.Drivers could send their wife or a partner to broker training or go themselves or learn the job or use other options. So instead of doing either of these things they find it easier just to bad mouth all brokers. (You see this poverty mentality in many areas of life) Owner operators, it is smart to do what you can to make direct connections with shippers and receivers if you want to avoid the freight brokers. The good broker is simply filling a need for those without connections, often in bad or slow freight areas.Most of our (Our meaning the trucking company I drive for, not all truck drivers) backhaul loads are from Freight brokers. Freight brokers are essential to the trucking industry and they will only become more needed as the economy recovers and manufactures need arrangement for the movement of more and more goods. It's often cheaper for companies to outsource to Freight Brokerage Companies to get their products moved than to train their own employees for an additional task. You can become a freight broker with the right training and guidance and the money to put up for a surety bond. If you don't have the $10,000 for a bond, you can still jump in as an agent for a freight broker after training. There are all types of freight broker training programs available online and at some training institutions. I went to
freight broker training at Transport Training America
(now called International) a few years ago. I chose them because they are the first ones that I came across that had online freight brokerage training but also classes held in physical locations across the country. I went to the Atlanta freight brokering classes. I would recommend them to anyone because the instructor was knowledgeable and funny and seemed to want us to learn the material. Also there was opportunity to put your training in practice upon graduation as an agent.An agent is someone who works under the freight broker. Becoming an agent is an excellent way for the wife or girlfriend of a trucker to get involved in the trucking industry and bring more money to the table. Especially if the husband is planning on becoming an owner operator. The skills and experience gained pursuing the training for becoming a freight broker could be part of a plan for accelerated financial stability for the family and possibly a way for the trucker to eventually come off the road if so desired. May be something worth looking into for the right spouse at home. It does take the right type of person because there is a lot of paperwork, calling, following up. Once you build up clientele and a solid professional reputation the work becomes less of a challenge. Basically it's just like many other start ups as far as the dedication and persistence. Where freight brokering differs from other types of business is the flexibility and opportunity to work from home. If you build the large enough, you could have agents working for you while you handle your Boss (family, lol) obligations. Any bored, go getter, wife at home should at least look into freight broker to see if they would be interested.
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