Freight Broker Training: Miscellaneous Comments

Here are some miscellaneous comments that I made in an email sent to one of my clients some  time ago. They still hold true.

When you get set up with shippers, you'll fax them your set up package which basically consists of your motor carrier number, surety bond info, W-9 form and a few other documents. It's the first step in working with shippers. You'll always want to deal with the shipping manager or dispatcher as he or she is called. You don't want to talk to just any employee in the shipping department. You don't have to sell yourself in the traditional sense. You tell them who you are, what you do and that you'd like to help them save money on their shipping. However, you can use any approach that is comfortable for you. You give them good service by communicating constantly and effectively. You need to gather all the details from them on each load and then communicate with them if there is a potential problem. You work hard to cover their loads and in time you will prove yourself to them. Then you can expect repeat business - and that's exactly the way you want things to go.

There are no insurance requirements for freight brokers but some freight brokers get contingent cargo insurance. It covers your load in the event the driver damages the load and his insurance won't cover it for one reason or another. But their are exclusions that you need to be aware of. You may not be getting the coverage you think you are buying.

You pre-qualify motor carriers by checking out their authority and insurance with the Federal Motor Carrier Safety Administration. It's done online and is a necessity. You can also do checks on their safety record on the same website.

The best negotiating strategy for carriers is to know exactly what you are offering the truck and then knowing where to draw the line if you have to take less. As far as the shipper is concerned, you first prove to him that you are reliable. Then you continue the service and you may get better rates as time goes on. You build relationships with both carriers and shippers and work for the benefit of both of them while still maintaining the profit margin that you want.

The best way to establish credit worthiness is to pay your trucks within 21 days as a general rule. You may make advance payments but I don't recommend this for beginning brokers. You will want to report your payment activity to various groups who ask for it so motor carriers can check you out. If they can't check you out, they may not want to do business with you.