Jul 05, 2017 • Brokers

What is a Freight Broker?

What is a Freight Broker?

Have you wondered what is a freight broker? A freight broker is someone who assists shippers with freight ready to haul by finding carriers to haul a load.

What is a Freight Broker?

Freight brokers can run their own business or work for a freight broker company. They are responsible for arranging the transportation and tracking of a load hauled by a freight carrier.

Freight brokers make it easier for shippers to find quality carriers that are proven to be reliable in hauling a load as instructed. Meanwhile, freight brokers help motor carriers potentially earn more by having readily available loads to haul.

The responsibilities of a freight broker are not limited to connecting carriers with shippers. They must communicate with both parties it represents as well as track the load and verify it’s pickup and delivery.

How Do Freight Brokers Make Money?

A freight broker earns money by moving freight for less than his customer is willing to pay to ship the freight. This difference creates a profit for the freight broker known as the spread. They are paid x amount by a client to find a carrier to haul a load which they pay for y amount. The difference is what the freight broker earns.

Freight Broker Salary

A freight broker salary has a national average of $41,952 annually according to PayScale. Keep in mind this is a base salary average without any of the commission or bonus included.

Location will also play a tremendous factor in dictating freight broker salary. A freight broker in Dallas earns an average base salary of $55,000 where a freight broker in Kansas City earns $45,000. Freight brokers can earn upwards of $75,000 or more annually when the commission is added and that number can increase dramatically if you operate your own freight broker company.

Broker Load Boards – How Brokers Find Freight Carriers

Freight brokers looking to move freight need to find motor carriers who are available to haul a load. Broker load boards are used by freight brokers to connect with the desired freight carrier and are one of the easiest way to network and build a carrier base.

Using a load board such as Truckloads, freight brokers can quickly find qualified carriers who may be interested in hauling a load by posting the load details onto a load board and then contacting motor carriers who may be interested in the load. Time is money and the more loads a freight broker can move, the more they can earn, placing a premium on the use of load boards.

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Freight Broker Bond [p] Want a freight broker license? You'll need a freight broker bond of $75,000 first.[/p] [h2]Freight Broker Bond[/h2] [p]The freight broker bond is one of the lesser known parts of being a freight broker but it’s quite simple, and once you get a better understanding of it, you should feel as comfortable with your freight broker bond as you do with getting car insurance.[/p] [h2]What is a Freight Broker Bond?[/h2] [p]A freight broker bond is a form of a surety bond, which is like an insurance policy for a contract, though it doesn't take the place of liability insurance. It is a legal commitment made by one party to another to pay a certain dollar amount if the terms of a contract are not met. [/p] [p]In this instance, the bond protects a customer from losses if you don’t come through as well as giving carriers the peace of mind knowing they will be paid in a timely manner.[/p] [h2]BMC-84[/h2] [p] The BMC-84 is essential to your freight brokerage as it reassures carriers and companies that you have the backing to broker deals. BMC-84 is the bond for $75,000 and is required by law. It is necessary to cover payouts of possible claims (damages, broker negligence, failure to pay, etc). [/p] [h2]Applying for a Freight Broker Bond[/h2] [p]A freight broker bond can be acquired from any insurance agency such as Liberty Mutual, The Hartford, among hundreds of others. Alternatively, you can search for specific firms in your state who specialize in freight broker bonds. [/p] [p]When you're ready to select your agent of choice they will all require the same information to process your BMC-84: exact business name as it appears on the business license, the exact dollar amount for bond, business address, and all business/personal financial records. [/p] [p]You must pay a percentage of the freight broker bond up front before the agency will process it. Usually, this annual premium will be between $900-$2,000 depending on your credit. It can be paid for with a credit card or check in most instances and takes about 24 hours to process.[/p] [h2]Can I Get a Freight Broker Bond With Bad Credit?[/h2] [p]Yes, you can still get a bond. If you have bad credit it’s not impossible, but it will increase your cost to secure a bond which can run upwards of $2,000. Keep in mind that surety bonds do not affect your credit score so it wouldn't hurt to search around though it's best to start at the bigger agencies first. [/p] [p]The larger the firm the more freight broker bond providers they work with which increases your odds of being approved. Just remember the premium on the freight broker bond is a percentage of the bond itself, so if your credit is bad the premium will be higher. Even though you will have to pay more up front it allows you to open your business and provides an umbrella in case of any freight claims.[/p] [h2]Freight Broker Bonds and Claims[/h2] [p]Trucking is dangerous and things are bound to go wrong on the road from time to time. Customers will understand that. However, when things do go wrong, someone needs to be held responsible and pay the damages. Similar to a car accident, there will be a resolution and one party must pay out to the other.[/p] [p] This is why it is required for companies to maintain a $75,000 bond. If you're found responsible and must pay out on the claim, your bond will act as a line of credit to do so. Before being issued your bond you must sign a legal document to repay in full in the case of such a payout. [/p] [h2]Bonding Agency [/h2] [p]When selecting your bonding agency to try to use one who is also a Managing General Underwriter (MGU) bonding agency. MGU Agencies can and will help you through each stage of a claim. It is recommended to do everything possible to be proactive when issues arise on loads to prevent claims from being filed. Just like car insurance the more accidents, you have on your record the harder it is to get insured. Only here not being able to get a bond can cause you to go out of business as they are required to operate.[/p] [p]Remember DO NOT submit your proof of insurance directly to the FMCSA. The FMCSA requires that your insurance company submit the form and insurance certificate on your behalf.[/p] [h2] I Have a Freight Broker Bond, Now What? [/h2] [p] Now that you've covered your freight brokerage from potential claims with your freight broker bond, you can either continue to start your freight brokerage company or if you're ready, explore load boards to help you post loads that qualified carriers can view.[/p] [button-white href="https://truckerpath.com/blog/how-to-become-a-freight-broker/"]How to Become a Freight Broker[/button-white] [p]Freight brokers who use Truckloads have the ability to connect with over 100,000 qualified carriers ready to haul their freight. You can even track your loads to verify a carrier's location and ensure that your customers delivery is going according to plan. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=brokerbonds&utm_campaign=aug2"]Get Started With Truckloads Now[/button-green]

Jul 26, 2017 • Brokers

6 Tips to Keep Safe at Truck Stops <h2></h2> <h3></h3> You have finally arrived at your truck stop of choice (or found one using <a href="https://truckerpath.com/trucker-path-app/">Trucker Path</a>) and conveniently located a parking spot. Watch out as things might not be so safe as you think. A large percentage of truck-trailer accidents occur at truck stops which should be the safest place to park. Drivers can never let their guard down when behind the wheel and even parked at that! Trucking accidents are expensive and causes major setbacks in your schedule which leads to more expenses. Below are a few tips to help reduce a trucking accident/incident at a truck stop: <h2></h2> <strong>Here are 6 tips to keep safe at truck stops:</strong> <h2></h2> <strong>1. Pre-plan your route:</strong> Pre-plan your route so you know you will be stopping at a location with plenty of room and that is well lit. Choose your stops, don’t let them choose you. Use truck apps such as Trucker Path to efficiently plan your route and plot your desired stops. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b56.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b56-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5073" /></a> <h2></h2> <strong>2. Maximize your stops:</strong> Plan to take care of everything you need at a truck stop when you are there the first time. Stopping to fuel, refill your coffee, and eat is better than stopping five times. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b55.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b55-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5072" /></a> <h2></h2> <strong>3. Avoid parking at the end of a row:</strong> Not only is there traffic crossing next to you but most people park on the end because they are tired and after a long day the end is the closest spot. Avoiding the end of a parking lot helps you avoid drivers who are parking when they are tired. Removing yourself from high traffic areas can help reduce risk. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b54.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b54-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5071" /></a> <h2></h2> <strong>4. Avoid a spot that will force you to back out when you leave:</strong> Choose a spot you can either pull through (the best option) or back into (second best option). <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b53.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b53-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5070" /></a> <h2></h2> <strong>5. Park where there is space around you:</strong> The back of the lot will usually have more room than the front so let other drivers take the risk of all that traffic coming and going. No need to be a super Trucker when a safe and easy place is available. Think safe, not convenience.<h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b41.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b41-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5068" /></a> <h2></h2> <strong>6. Use your cameras:</strong> Don't be complacent when parking. When your space is tight, utilize what you have to your advantage. Using your cameras will help you see tight spots on sides and at the rear. Take your time and you can also step down to survey the surrounding areas. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b40.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b40-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5067" /></a> <h2></h2> <h2></h2> <h4>By Aldous Aldwin</h4> <h3></h3> <h3></h3>

Jun 23, 2020 • Carriers

Trucker Path's Bobblehead Photo Contest [p]PHOTO CONTEST: Our Trucker Path Bobblehead “Johnny” will be making his way around America. Here's how you can join the fun by participated in the contest and win![/p] [h2]Here's Johnny![/h2] [img src="https://truckerpath.com/uploads/2017/05/bobblehead-Johnny-1-e.png" alt=""] [h2]Photo Contest Rules – Be on the look out for Johnny[/h2] [p]If [b]Johnny[/b] is passed to you by a fellow driver please do the following:[/p] [ol][li][b]Take photos of Johnny[/b] the bobblehead as you travel along your route. Sunsets, flowing riverbank, views from your truck cab for Johnny to take in. You decide![/li] [li][b]Send your photos of Johnny[/b] to us through a direct [a href="https://business.facebook.com/TruckerPath/"]Facebook Message[/a] or email [a href="mailto:press@truckerpath.com"]press@truckerpath.com[/a].[/li] [li][b]Pass Johnny[/b] to a fellow driver you come across on the road or at a stop the following day.[/li] [/ol] [p]We'll post your photos on our Facebook Page – ones with the most likes WIN![/p] [h2]Where Will I Find Johnny?[/h2] [p][b]Johnny's route begins in America's Heartland near Cincinnati, Ohio[/b] – where he will be bobbing his head to the smooth moves of Big John – [a href="http://bigjohnsdancefitness.com/"]The Dancing Trucker[/a].[/p] [p]Let's show everyone how the trucking community is connected nationwide, hauling freight and delivering the things we all desire.[/p] [h2]Johnny at the Roebling's Bridge[/h2] [img src="https://truckerpath.com/uploads/2017/05/Bobblehead-small-e.png" alt=""] [p]Big John will pass Johnny along to a fellow truck driver he meets on his delivery route in April. Could be at a truck stop waiting in line to buy a coffee or maybe at a diesel pump while filling up. We don't know where Johnny will be or when and that's the point – it's up to you, our community![/p] [h2]Oh, the Places He Will Go[/h2] [p]From horses galloping freely through the fields of Kentucky bluegrass to the lively streets of Austin and the [i]Texas State Capitol[/i]. "The Gateway Arch" in St. Louis, MO. leading west, to the majestic Pacific coast of California – Johnny's Tour Across America has endless destination possibilities. Where will you take him?[/p] [p]The dedicated network of drivers in the trucking community travels over 432 billion miles annually. See how they can lead our eager Johnny across this great nation. 100 days to see all that can be seen![/p] [h2]Sweet Peach, Johnny's in Georgia[/h2] [p]Traveling along with with the Road Queen, [a href="https://www.facebook.com/sherri.mckinney.16?pnref=story"]Sherri McKinney[/a], Johnny has made his way to Georgia now. Keep truckin' along![/p] [img src="https://truckerpath.com/uploads/2017/05/Little-Johnny-in-Georgia.jpg" alt=""] [h2]Johnny Stopping By at a Truck Stop in Kansas[/h2] [p]There's no place like home! Well, Johnny clicked his heels three times and has since landed in Kansas for a quick bite to eat. Where to next?[/p] [img src="https://truckerpath.com/uploads/2017/05/johnny-eating-e.png" alt=""]

May 01, 2017