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 Contracts [p] Freight contracts are necessary for binding agreements between freight brokers and carriers. While they can be confusing, if you remain organized and follow these examples, you will better manage your freight contracts. [h2] Freight Contracts [/h2] [p] There are several different types of freight contracts encompassing the responsibilities and liabilities of both the freight broker as well as the carrier. In this instance, we will be focusing on the details of freight contracts and agreements between the freight broker and carrier.[/p] [p]Since the freight broker is representing the company who wishes to ship a load, freight brokers are required to have contracts and agreements with carriers which ensure that prior to the freight being hauled, there will be a certain rate paid, delivery within a specific time period as well as other verifications of the delivered freight. [/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 for 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 Template[/button-white] [h2] Load Tender or Load Confirmation [/h2] [p] A load tender or load confirmation highlights the necessary details of the load for the carrier. The load tender form will include information like the address and hours of operation for the shipping location and consignee who will be receiving the load. It will also include the type of trailer used including the length, width, height, and weight as well as a description of the freight. [/p] [h2] Rate Confirmation [/h2] [p] A rate confirmation is an agreement of pay between the freight broker and carrier that is legally binding. A freight broker must provide a rate confirmation for the carrier to sign before proceeding. The rate confirmation portion may be included in the load tender form or included on a separate sheet.[/p] [h2] Accessorial Charges [/h2] [p] Although the parties may agree on a rate confirmation, there are circumstances when a carrier is entitled to additional payments. When a carrier performs specific tasks beyond the scope of the agreed pickup and delivery he or she is entitled to accessorial charges.[/p] [p] Accessorial charges can include things such as detention or wait time, the potential need for additional fuel, tarping, refusal of shipment, storage and other unexpected costs that could arise. [/p] [h2] Bill of Lading[/h2] [p] What is a bill of lading? A bill of lading (BOL) is considered a receipt for the delivery of freight by a carrier to a consignee. The bill of lading will have load details, the destination and time frame to deliver, as well as any special instructions. [/p] [p] The bill of lading is a legally binding document that is provided by the shipper or freight broker prior to the carrier hauling the freight. The carrier must have the bill of lading signed at the time of delivery as proof the freight has been delivered. [/p] [p] For an owner operator to use a freight factoring company and get paid sooner, he or she will need to submit forms like the bill of lading and rate confirmation in order to provide proof of work completed and the rate to be paid for the work. [/p] [h2] Truckloads Broker Load Board [/h2] [p] If you're a freight broker you rely on tools like load boards to find carriers and move freight. Our load board Truckloads has over 800 freight brokers posting loads for over 100,000 qualified carriers to view and includes unique features like freight tracking and truck searches. You can post loads via TMS and see how many times and which carriers have viewed a load. [/p] [video id="o_tsuJHWayo"] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=Blog&utm_medium=contracts&utm_campaign=Aug2"]Try Truckloads Free [/button-green]

Aug 02, 2017 • Brokers

Industry Update - December 5, 2019 <h4><strong>By Paul DeCoste</strong></h4> <h3><strong>Did you Know?</strong></h3> It is a safety violation to replace your truck seat with a <a href="https://cdllife.com/2019/nebraska-state-patrol-finds-unusual-violation/">lawn chair…</a> <h3></h3> <h3><strong>Weather Report</strong></h3> Pennsylvania and New Jersey have <a href="https://cdllife.com/2019/states-issue-truck-bans-ahead-of-snow-storm/">issued travel bans for vehicles</a> in lieu of a massive snowstorm. Vehicles affected are double trailers, empty trailers, RVs, motorcycles, and non-commercial vehicles hauling trailers. This travel ban went into effect at 6 AM on Monday, December 2<sup>nd</sup>. <h3></h3> For more information on which roads are blocked from travel, take a look at the Pennsylvania DOT Facebook page: <a href="https://www.facebook.com/PennsylvaniaDepartmentofTransportation/">https://www.facebook.com/PennsylvaniaDepartmentofTransportation/</a> <h3></h3> <h3><strong>Regulations</strong></h3> California Air Resources Board (CARB) has announced that it is <a href="https://www.ttnews.com/articles/carb-suspends-imminent-ghg-rule-trailers">suspending the enforcement of its greenhouse gas trailer standards.</a> The original standards could be met by adding features to trailers that reduce aerodynamic drag, upgrade the tire pressure monitoring system, introduce low-rolling-pressure tires or other weight reduction methods. <h3></h3> These standards were set to go into effect on January 1<sup>st</sup>, 2020 and had to be met by manufacturers of new trailers. However, due to the lack of federal enforcement and confusion among the definition of a “new trailer”, the CARB has suspended the implementation of these rules for the next two or three years. <h3></h3> <h3><strong>ELD Update</strong></h3> The Commercial Vehicle Safety Alliance (CVSA) is warning <a href="https://cdllife.com/2019/cvsa-warns-truckers-no-soft-enforcement-for-eld-deadline/">that there will be no leeway on December 17<sup>th</sup></a> for drivers that have no transitioned to approved ELDs. <h3></h3> Look out drivers! The CVSA says that on December 17<sup>th</sup>, any driver caught without an FMCSA approved device will be considered to have no record of duty status and will be declared out of service for 10 hours. That’s valuable time that no one can afford to lose! Make sure your ELD is in line with the FMCSA rules: https://www.fmcsa.dot.gov/hours-service/elds/general-information-about-eld-rule <h3></h3> <h3><strong>Trucking Industry Serving the Community</strong></h3> Truckers serve the community in many different ways and styles. <a href="https://www.trucker.com/drivers/drivers-industry-leaders-lead-through-charitable-work">Here are just a couple of foundations making a difference this Christmas season:</a> <h3></h3> <ul> <li><strong>The Convoy of Care</strong> – Founded in 2016, Convoy of Care delivers critical supplies to families in need after natural disasters. They have delivered supplies to multiple states across the US and even found a way to get supplies to the Bahamas.</li> </ul> <h3></h3> <ul> <li><strong>The American Logistics Aid Network</strong> – The ALAN provides free logistics support to disaster relief organizations before, during and after natural disasters.</li> </ul> <h3></h3> <ul> <li><strong>CFI</strong> – CFI has been donating through its Truckloads of Treasure event since 1993 and has collected over $800,000 in donations from employees and contractors alike. They choose multiple charities to support each year and even hold fundraising events like chili cook-offs, silent auctions and ugly sweater contests.</li> </ul> <h3></h3> <ul> <li><strong>XPO Logistics</strong> – XPO supports the Ohio based non-profit, Elves and More which helped surprise over 800 children with bikes during the 2018 holidays. They even donated 500 bikes for a Christmas in July event this past summer.</li> </ul> <h3></h3> <ul> <li><strong>Wreaths Across America</strong> – Drivers throughout the industry look forward to participating in Wreaths Across America, a foundation that coordinates wreath laying ceremonies at more than 1,600 locations across the nation. Drivers support by delivering wreaths to different locations and even participating in the wreath laying events.</li> </ul>

Dec 05, 2019 • Carriers

Truck Parking Issue Can Cost the Industry $5 Billion Annually [p]Finding safe truck parking is a looming issue that can cost the trucking industry an estimated $5.1 billion annually.[/p] [h2]3 Factors to Help Resolve the Truck Parking Issue[/h2] [p][b]1. Increase Capacity in Areas of Need[/b][/p] [p]After examining the data at over 270,000 truck parking spots in 2016, we found that in the Western areas of America, it is nearly impossible for a truck driver to find truck parking nearby within 45 minutes. After surveying over 3,000 truck drivers we discovered that [i]40 percent of truck drivers spend an hour or more searching for nearby truck parking.[/i] That's nearly 10 percent of their allotted daily driving time![/p] [img src="https://truckerpath.com/uploads/2017/05/bottom-infgr-e.png" alt=""] [p][b]2. Increase the Use of Technology to Help Find Truck Parking[/b][/p] [p]Technology can provide truck drivers with necessary information to find nearby truck parking. [a href="https://app.appsflyer.com/com.sixdays.truckerpath?pid=Social Facebook"]Trucker Path[/a] is a necessity for truck drivers who need to find nearby truck parking. There are over 8,000 truck stops, rest areas, and travel centers in the app with real-time updates regarding the available truck parking.[/p] [p][b]3. Improve Trip Planning and Efficiency by Drivers[/b][/p] [p]Most drivers plan ahead by searching for truck parking along their route. However, on average, 16 percent of truck drivers say they start to plan for parking 30 minutes or less before hitting their HOS limit. For truck drivers to find available parking in a timely manner, especially in the Western part of the U.S., they should begin the process at least one hour ahead of hitting their HOS limit.[/p] [p]Fleets can also help their drivers by providing them with necessary recommendations or having technology like Trucker Path loaded onto in-cab devices. While some fleets are proactive, this is not standard as 86 percent of truck drivers say their fleets don't give them recommendations on how to find parking.[/p] [p][b]Using Trucker Path can save drivers an estimated 11 hours per month![/b][/p] [video id="NSSOwFRJaQw"] [h2]Lost Opportunity for Fleets and Truck Drivers[/h2] [p]Time spent searching for truck parking can limit a driver’s earning potential. [i]If over 1.6 million truck drivers in America lose 11 hours every month, then the trucking industry is losing about $5.1 billion annually.[/i] Here is a detailed breakdown of the potential lost opportunity.[/p] [images src="https://truckerpath.com/uploads/2017/05/chartcaption.png" alt="Cost of parking" width="316px" align="left"] [h2]Unauthorized Truck Parking is Unsafe[/h2] [p]Truck driver safety also plays a role in the truck parking issue. In 2015, 852 truck drivers lost their life while working, making it the most dangerous job in the USA. [i]79 percent of drivers were forced to violate their HOS because they couldn't find truck parking.[/i] Meanwhile, drivers have been forced to park in unauthorized locations such as highway shoulders, store lots, and off-ramps. These areas are unsafe for truck drivers, leading to potential cargo theft or accidents when merging off or back onto roads.[/p] [h2]What's Being Done to Help Truck Drivers?[/h2] [p]Truck drivers don't feel enough measures are being implemented to help them. [i]86 percent of truck drivers we surveyed said they feel the government isn't doing enough to help alleviate the truck parking issue.[/i] There are a few states that have taken the initiative in helping provide solutions for truck drivers.[/p] [p]States such as Kentucky and Florida (among others) now utilize weigh stations for truck parking, known as “rest havens”. Meanwhile, Maryland and Delaware have provided corridor parking for trucks along I-95 resulting in 220 available truck parking spots.[/p] [p]Reopening rest areas for trucks to use for parking is another potential opportunity. Many rest areas were closed since 2008 due to state and city budget decreases. Rest areas that are closed like in California, where there are 13 not in operation could provide an average of 10 truck parking spots per location. The operational costs could be limited by providing only basic restrooms and security like surveillance or a rotation of a security officer on duty.[/p] [button-white href="http://assets.truckerpath.com/external/2017-05-04-pdf/parking-shortage-costs-the-trucking-industry-5B-annually.pdf"]Entire Report[/button-white]

May 04, 2017 • Carriers