They are neither a shipper nor a carrier, but they play a significant role in shipping freight. They are an intermediary person or firm who works with both a shipper – who wants to transport its goods, and a carrier – who transports the good in reality. Freight brokers function as a middle man in all types of freight shipping.
Freight brokers are like agents who don’t perform the process on their own. Rather, their role is to map the needs of a customer and match it with the capacity of a transportation company. Amidst all the business opportunities as available in the industry for a broker, freight brokerage is the best.
If you are a business looking for a transportation service to import or export goods domestically or globally, a freight broker will find a right transportation facility for you. Some transport companies function as a shipping company that has their own freight carriers or trucks. The shipping industry has grown beyond $400 billion today. Thus, it is no wonder that there exist a large number of schools that offer paid training to all interested and qualified for becoming a freight broker.
Freight brokerage is one of the fastest growing industries today. With more and more businesses going at a global level to perform trades, the need of freight brokers is increasing at a fast pace. If you are a fresh graduate looking for a bright future, you may bank on brokerage industry. Not only it is full of lucrative opportunities, but it requires zero or negligible investment.
Having in depth knowledge of transportation facilities supplied by different logistic companies or shipping companies is very essential to begin your career as a freight broker agent. You need to first build your own network of clienteles in the industry, which is achievable only if you build a strong positive reputation in the market, like American Freightways for example. A broker gets its commission (brokerage) from both the parties between whom the deal is actually performed.
Three Concrete Steps to Begin Your Career as a Professional Freight Broker
- Join a School course or Get On-roll Training
You will find a number of schools that runs brokerage training courses. However, I personally recommend my readers a second option which is to find a good logistics company or a transport company that offers on-the-job training, like American Freightways. Getting an on the job training will not just save you school fees, but get you more expertise and knowledge of the industry.
As such there are no specific qualification requirements to become a freight broker. You need to build your sales and marketing skill to consistently expand your network. And knowing the transportation industry is a fundamental need to set up a private freight brokerage business. Negotiating skills are a must for every freight broker. The best way to achieve these skills or expertise is that you should work under a licensed broker and learn from them as much as you can.
- Apply for a broker license and registration
To work independently as a freight broker, you first need to apply for a license to a respective committee or department in your country. For example: Federal Motor Carrier Safety Administration (FMCSA) is an authentic department of transportation in the USA that gives license to freight brokerage agents.
Getting a license isn’t enough to run a legitimate brokerage business. There are some other formalities which vary from state to state and from one country to another. The USA government compels the brokers to get a surety bond worth $10,000. So, they can cover the damages if a broker fails to meet its responsibilities. There is also a formal procedure in hiring a freight brokerage agent in your state or province. Contact the respective department or an expert of the brokerage industry and learn these procedures.
- Keep Growing!
Networking is a common characteristic found in brokers of all industries. Freight shipping industry isn’t an exception to this. Find out all the companies in your city or area that need transportation facility. You also need to gather the information of agencies or companies that offer freight carriers. Once you are ready with your list of shippers and carriers in your city, you can start contacting them one by one and create business opportunities.
When you work as a freight broker, you are carrying a big responsibility on your shoulders. The shipper will select a transport of shipping company based on your recommendation. Thus, you must ensure a satisfactory and fruitful deal for both the parties. Want to ship freight? Find a reliable freight broker agent in your area today!