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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Broker Carrier Agreement [p] A broker carrier agreement is required in order to have a freight contract that will ensure a motor carrier hauls truck freight for the freight broker. [/p] [h2] Broker Carrier Agreement [/h2] [p] A freight broker may negotiate a rate with a carrier before agreeing to freight contract terms and signing a Broker Carrier Agreement. Let's say a freight broker posts a load on a load board that needs to be picked up from Dallas and delivered to Kansas City. [/p] [p]The freight broker may offer to pay the carrier $1,000 but the carrier wants to negotiate a higher rate. Eventually, the two parties agree that $1,300 is a fair rate and they wish to proceed. This is where a Broker Carrier Agreement comes in. [/p] [p] A Broker Carrier Agreement will include things like: [ul] [li] The Broker and Carrier's Information (including MC#) [/li] [li] Agreement Date [/li] [li] Days to Pay [/li] [li] Procedures for Invoicing [/li] [li] Liability and Insurance [/li] [/ul] [/p] [button-white href="https://truckerpath.com/uploads/2017/07/Model-Motor-Carrier-Broker-Agreement.pdf"]Broker Carrier Agreement Example[/button-white] [p]Carriers want to know when they will be paid, what sort of liability they might be required to have any other stipulations of the truck load before considering to haul it. Without the broker carrier agreement, truck freight cannot be booked and subsequently hauled. [/p] [h2] Find Freight Carriers on Truckloads Load Board [/h2] [p] Brokers can't come to an agreement without having an interested carrier in the mix. So how do <a href="https://truckerpath.com/blog/find-freight-carriers/">freight brokers find carriers</a>? This is where tools such as load boards come in to play. [/p] [p] <strong>Truckloads</strong> free broker load board is one of those with unmatched technology. It provides you with access to over 100,000 verified freight carriers who are qualified to haul your freight. It's easy to post truck loads via CSV or TMS and you can keep tabs to see which freight carriers have viewed your load and how many times. [/p] [p] Truckloads also has unique features such as <em>Truck Search</em> which allows you to search for available trucks in a specific location. View a carrier's <strong>Safer Watch Rating</strong> to confirm if they are qualified and if you're interested, contact the freight carrier directly. Now you can move more truck freight than ever before! [/p] [button text="Find Motor Carriers Now" href="https://truckerpath.com/truckloads/broker-signup/?utm_source=blog&utm_medium=brokercarrieragreement" width="250px"] [video id="94nytqkGWRI"]

Nov 07, 2017 • Brokers

Industry Update - April 12, 2019 <h5>By Jeremy Feucht</h5> <h3><strong><u>Did you Know?</u></strong></h3> The famous trucking movie “Breaker, Breaker” turned 42 this month. Released on April 1, 1977, “Breaker, Breaker” is still considered one of the top trucking movies of all time. <h3><strong><u>Trucking tip of the Week</u></strong></h3> With weather issues cropping up across the US, it worth noting to be careful using “Adverse Condition” if you run into trouble. Remember, if the weather has been predicted, adverse condition does not apply to extend your hours. <h3><strong><u>Declarations of Emergency</u></strong></h3> Oddly enough, even though many states are experiencing records amounts of rain, flooding, and some mudslides, particularly in northern Idaho and western Washington, the number of state declarations of emergency have been reduced. Do not assume just because an area has had a lot of bad weather that a declaration of emergency will be signed. Remember to check the <a href="https://www.fmcsa.dot.gov/emergency-declarations">FMCSA’s declaration page</a> regularly. <h3><strong><u>Truckers and National Security</u></strong></h3> The Transportation Security Administration is creating a <a href="https://finance.yahoo.com/news/trucking-rail-industries-advise-regulators-231605791.html">group of 35 voting members</a> from both the rail and trucking industries to help create regulations to protect surface transportation and the country as a whole. Of the 35 voting members, two members are from the ATA and another is from OOIDA. While it is suggested the groups will be working on national security type issues, there has no word on what issues they will directly address. <h3><strong><u>Technology</u></strong></h3> <a href="https://www.ttnews.com/articles/digital-dashboard-cameras-gaining-truckers-acceptance">Dash cameras have long been shunned</a> by the trucking industry for many reasons. With the invasion of privacy concerns, who can access the cameras, when and under what pretenses, there will always be worries about having them in the cab of the truck. However, truckers are beginning to buy into the idea more and more. A lot of this is due to the fact that insurance companies are rewarding those drivers that do install them with lower premiums. Another reason why they are being adopted is because fleet owners want to see what is causing poor driving habits. They can use this as a tool to adjust driver habits and to effectively manage their fleets.

Apr 12, 2019 • Carriers

Freight Broker License [p] Learn how to get a freight broker license and move freight in a few easy steps.[/p] [h2]Freight Broker License[/h2] [p]The freight industry is continually expanding and having a freight broker license gives you the authority to earn money by moving truck freight without actually hauling it.[/p] [p] A freight broker license allows freight brokers the authority to move freight by connecting shippers with carriers, essentially brokering the deal. Freight brokers are hired by shippers who have freight that needs to be hauled from one location to another.[/p] [p]Let's say there is a furniture warehouse in Texas that needs to ship its freight to department stores in Georgia. The warehouse representative is the shipper, who needs to find a carrier to haul the load. This is where the freight broker comes in.[/p] [p]With a freight broker license you are paid by the shipper to find a carrier to haul the load. You can use your broker authority to find qualified carriers on load boards like [a href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=Blog&utm_medium=brokerlicense&utm_campaign=July19"]Truckloads[/a] by either posting information about your freight or by doing a truck search to find a potentially interested carrier.[/p] [giphy]<iframe src="https://giphy.com/embed/2HtWpp60NQ9CU" width="480" height="263" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]Freight Broker License Cost[/h2] [p]To get a freight broker license and have broker authority you must apply for a US DOT number with the Department of Transportation first. Once approved, use your DOT Number to get a Motor Carrier (MC) number and broker authority with the Federal Motor Carrier Safety Administration (FMCSA). This is approved through the completion of the [a href="https://www.fmcsa.dot.gov/registration/form-op-1-application-motor-property-carrier-and-broker-authority"]OP-1 Form[/a] which includes a $300 application fee.[/p] [h2]Broker Authority[/h2] [p]Having broker authority isn't the only requirement to become a freight broker. You will need to decide if you want to start a freight broker company or if you want to work for an established brokerage company.[/p] [p]Regardless of your choice, you should be sure to do ample research in order to better understand the nuances of the trucking industry and which options are best for you. We've provided a step-by-step guide to help you become a freight broker.[/p] [button-white href="https://truckerpath.com/blog/how-to-become-a-freight-broker/"]Guide to Become a Freight Broker[/button-white]

Jul 19, 2017 • Brokers