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

Trucking Industry Update February 22, 2019 <h3>Trucking Industry Update February 22, 2019</h3> <h4>By Jeremy Feucht</h4> <h2><strong><u>Did you Know?</u></strong></h2> We all know that trucking carries roughly 73% of all goods shipped in the US, but did you know that 94% of all hazardous material moved in the US is shipped via truck? <h2><strong><u>Trucking tip of the Week</u></strong></h2> Trip planning is essential. If it is a lane you have never driven before, planning becomes all that more imperative. When you leave could mean the difference between hitting traffic in a big city or not. Many areas have low bridges that semis cannot fit under. You need to know how to get around those. Knowing the best places to fill up with fuel and where scales are so you are filling up after leaving a scale. Filling up after leaving a scale can help you stay weight compliant yet have a full tank of fuel. Plenty of things to think about when planning your trip. <h2><strong><u>Driver’s Pay</u></strong></h2> There are signs that companies may be changing the way they pay their drivers. For the Owner-Operator, that could be a good sign. As companies increase the pay for their drivers in hopes of stabilizing retention rates, fewer and fewer drivers will attempt the owner-operator method. This means more loads on the spot market for them to find. <a href="https://www.joc.com/trucking-logistics/labor/new-truck-driver-pay-model-aimed-capacity-retention_20190220.html">Companies are looking into salaries</a>, amongst other ways to pay their drivers. Wages will be dependent upon their track record and in some cases tenure within the company. <h2><strong><u>Technology in Trucking</u></strong></h2> Companies are doing many different things to ensure the quality of the driver they are putting behind the wheel. Instead of waiting on the government to figure out what should be the minimum amount of training needed before driving, <a href="https://www.beaumontenterprise.com/technology/businessinsider/article/America-s-fifth-largest-trucking-company-has-a-13630774.php">Xpress, the fifth largest carrier company in the US</a>, sought out advice from its own drivers. Moving away from the classroom type setting, Xpress is creating a technology-based, self-paced learning regiment. On top of that, they have created a virtual reality simulator that their prospective drivers must pass long before getting behind the wheel of an actual truck. Could this be the wave of the future? <h2><strong><u>Toll Roads</u></strong></h2> Much like Virginia did a few weeks back, Connecticut is moving away from an idea of placing a heavy burden on truckers moving through their state. The governor, Ned Lamont, had sought to <a href="https://cdllife.com/2019/governor-flip-flops-away-from-truck-only-toll-promise/">create Truck only toll roads in the state of Connecticut</a>. Due to legal issues, he has backed off that idea. Instead, he is looking at creating toll roads across the entire state for all vehicles. The chances of this happening are slim because people, while naïve to the plight of the trucker and they tend not to worry about things that indirectly affect them, will not be in support of something that adds a more direct burden on themselves.

Feb 22, 2019 • Carriers

How to Start a Trucking Company [p]Wondering how to start a trucking company and earn more money? There are several steps and a few guidelines to follow. [/p] [h2] How to Start a Trucking Company[/h2] [p]Deciding to start a trucking company is a great idea and the timing is right. <a href="https://truckerpath.com/blog/trucking-industry-trends/">Trucking industry trends</a> expect freight revenue to grow by 75 percent over the next nine years and with the trucking industry eclipsing over $726.4 billion in revenue for 2015, starting a trucking company now can be extremely lucrative. The trucking industry serves as a pillar in keeping things going and as long as people have demand for products, moving freight will be necessary for years to come.[/p] [p]Don't be intimidated by the larger trucking companies with thousands of truck drivers and investors to provide capital. 90 percent of trucking companies are small fleets of six trucks or less so there's space in the industry for you to learn how to start a trucking company.[/p] [h2] 1. Apply for Trucking Authority - Trucking Company Forms[/h2] [p]Paperwork, documentation, and forms. They're tedious and might seem redundant but are necessary for you to get your trucking company started and earn <a href="https://truckerpath.com/blog/trucking-authority/">trucking authority</a>.[/p] [p]If you haven't already been assigned a US DOT number, you will need to register for a DOT number form before you can apply to obtain trucking authority. Keep in mind the old [a href="https://www.fmcsa.dot.gov/registration/form-mcs-150-and-instructions-motor-carrier-identification-report"]MCS-150 form[/a] is now only for updating existing US DOT number and not for obtaining a US DOT number.[/p] [p]To get a US DOT number you will need to use the new [a href="https://portal.fmcsa.dot.gov/UrsRegistrationWizard/"]Unified Registration System[/a]. The processing time can take 20-25 business days according to the FMCSA.[/p] [p]If you already have a US DOT number and wish to apply for operating authority you can do so by [a href="http://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_option"]completing this registration form[/a] and paying the associated $300 fee.[/p] [h2] 2. Choosing a Process Agent[/h2] [p]You will need to choose a process agent who can represent you in regards to court papers. You will need to have a process agent for each state your trucking company operates in. They are used if there ever is an issue where court papers are to be served to your trucking company in a state other than the state your company is registered in.[/p] [p]The FMCSA has a [a href="https://www.fmcsa.dot.gov/registration/process-agents"]list of process agents to choose from here[/a]. The process agent is responsible for completing [a href="https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/registration/1996/boc-3-1-18-2017.pdf"]Form BOC-3[/a] on behalf of your trucking company.[/p] [h2]3. Truck Insurance[/h2] [p]Once you've established your trucking company you will need to make sure that it's properly insured. Liability insurance is required for trucking companies to cover potential damages or injuries caused by operating a commercial vehicle.[/p] [p]Shop around and get several quotes before making a decision on which insurance provider is best for your trucking company. [a href="https://www.fmcsa.dot.gov/registration/insurance-requirements"]Here is a detailed overview of the FMCSA insurance requirements[/a] to help get you started.[/p] [giphy]<iframe src="https://giphy.com/embed/3o6Zt2iHqqrjNlbPS8" width="480" height="270" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]4. Buying or Leasing a Truck[/h2] [p]When starting your trucking company you can buy or lease trucks depending on what suits your needs best. If you have the working capital upfront to cover the cost and want to operate a small fleet with a few trucks, buying several trucks at once from a dealer might result in a discounted price per vehicle.[/p] [p]You can also look into leasing trucks which often times keeps the monthly costs down and can even have a lease-to-own option available. However, there are usually restrictions that apply to leasing that vary by dealer. You will want to take the time to search and compare dealer options and offers before choosing.[/p] [p]Lastly, there is also the option to purchase used trucks which can help save you upfront but can be costly down the line. You may find a used truck that is a few years old with over 400,000 miles on it for $40,000 to $50,000 less than a new one.[/p] [p]It might be a great deal but remember, on average, truck repairs cost an estimated $15,000 annually according to the ATRI and with used trucks, that number can be even more. [/p] [h2]5. Choosing the Right Truck and Trailer Equipment [/h2] [p] Choosing the correct equipment to haul <a href="https://truckerpath.com/blog/types-of-truck-freight/">truck freight</a> can have a tremendous impact on your trucking companies earning potential. Although freight rates fluctuate week-to-week, typically flatbed truck loads pay the highest rate on average. [/p] [p] That is not to say that a reefer, van or step deck load won't ever pay a better rate. Rather it's just an overall average to consider before choosing the equipment type for your truck. Keep in mind that location also plays a major factor in determining freight rates. [/p] [p]<strong>Looking ahead</strong>: when you're trucking company is set up, you can find truck freight to haul on free load boards like <strong>Truckloads</strong>. Customize your truck load searches by <a href="https://truckerpath.com/blog/what-is-deadhead/">deadhead</a> location and the trailer equipment type for you. [/p] [video id="snyBYpnuhWw"] [h2] 6. International Registration Plan (IRP)[/h2] [p] By registering your vehicle through the IRP in your home state, you will be allowed to haul interstate loads as well as freight through Canada without having to worry about additional registrations. You will be provided an apportioned license plate and cab-cards now display all jurisdictions that you cover. [/p] [p] The IRP registration fee for your apportioned plate will vary depending on state and vehicle weight, but typically the price ranges from $1,500 - $2,000. [a href="https://www.fhwa.dot.gov/about/webstate.cfm"]Use this list to determine what the cost will be for your state.[/a] [/p] [button-green href="http://vip.truckerpath.com/gold-member?utm_source=email&utm_medium=how-to-start"]Try Trucker Path Premium FREE for 14 Days[/button-green]

Jul 14, 2017 • Carriers