John Thomas on Freight Brokering

Freight Brokering

Here is a real short piece of information on

• what a freight broker is,
• how do you become one, and
• why you need proper training

Go to: http://www.atexfreightbrokertraining.com/howandwhy.shtml

Broker of Property, Freight Broker or Truck Broker: Do They Need Authority?

There are various titles for freight brokers but the FMCSA calls them Brokers of Property or Property Brokers. Then others call them Truck Brokers or Transportation Brokers. They essentially are all one and same.

Each of them usually arranges for the transportation of cargo. There is some confusion here. Some individuals are arranging for cargo to be transported and they are receiving compensation for it. However,if they don't have their broker authority, they are in violation of the law.

Here is how it is stated on the Application for Motor Property Carrier or Broker Authority.

A Broker of Property (except household goods) is "An individual, partnership or corporation that receives payment for arranging the transportation of property (except household goods) belonging to others by using an authorized motor carrier".

It then goes on to state in bold letters, "A Broker does not assume responsibility for the property and never takes possession of it.

I'm sometimes nit picky and I would have FIRST stated that the broker does not take possession of the cargo and THEREFORE does not assume responsibility for the cargo. The reason they don't assume responsibility is because they don't take possession of the cargo.

But if anyone is arranging for moving cargo and receiving money for it either they (if they are self-employed) or their employer need to have their broker authority.

 

Freight Brokering and Trailer Types

Some inquiries ask what type of tractor trailer would be most likely used in freight brokering. It's really quite simple for the most part.

The most likely required trailers would be Dry Vans (V), Vented Vans (VV), Refrigerated Units (R), and Flatbeds (F). These trailer types are what you will be dealing with most of your brokering days.

But there may be other trailer types required depending upon the type of cargo. Here are some examples and they are in no particular order:

Flat Intermodal (FINT), Lowboy (LB), Container trailer (CONT), Van with a Lift Gate (VLG), Step Deck (SD), Flatbed with Sides (FWS), and so on and so on.

But by far, you will be working with Vans, Reefers and Flatbeds.

Freight Broker Audio CDs

You can now order all three audio CDs buy going over to the right hand side of this web page and scrolling down just a little way. You can order only one or two separately. Or you can order all three for the best deal.

There is nearly 3 hours of practical and useful information on the three CDs. The titles are:

• "A Simplified Guide to Becoming a Freight Broker",
• "15 Rock-solid Benefits YOU Can Expect Working As a Freight Broker", and
• "Freight Brokering: The Perfect Home-based Business"

Enjoy

Freight Broker Questionnaire

Several weeks ago I did a survey asking people if they had one particular question. About 60% of those responding to the survey did have a question. Here is one:

"What would make the freight broker business fail and why?"
Here is my answer:

There are several things in my opinion that would cause one to fail. Here are
several,

1) Lack of understanding the nature of a service-oriented business

2) Lack of knowledge on the details of freight brokering

3) Trying to go it alone without knowing the sequential procedures

4) Lack of marketing knowledge - knowing what is realistic and workable

5) Lack of capital to carry your living expenses until you get established

6) Misconceptions and errors in thinking - such as thinking you should wait until customers call you

7) Not understanding that a freight brokerage is a business

8) Violating or ignoring fundamental business principles such as cash management, marketing, planning and setting up operations

These are just several that come to mind. I'm sure there are others as well.

I did not elaborate on the "why". That would involve writing a small report (which I'd like to do at some point).

Freight Broker Business: How to Negotiate the Curves

Freight brokering is just like driving a car or a truck. You keep your eyes on the road BUT you check the mirrors to the left, to the right and right in front of your face.

You can take your eyes off of the road but not for long. So, you need to give some quick glances when you check your mirrors.

So, in freight brokering you want to focus on building a list of customers and carriers which is the same thing as keeping your eyes on the road. It is the most pressing job you have.

As you get more comfortable in freight brokering, you can take a look at some of the tools that will help you not only create but maintain what you have accomplished so far. This is much like driving where you get more comfortable at the wheel and you can glance around the mirrors to make sure everything is alright.

One tool or additional thing you can do after you get more comfortable is to have a part time person come in to make prospecting phone calls. They don't need to know all the details of brokering to do this. Use them to just identify shippers who use freight brokers.

It's just one more thing that will help you keep your eyes on the road. Let them check your mirrors, so to speak.

Freight Broker Business: What Is Your Obligation?

Here's a good question: If you take an order from a shipper to find one or several trucks, what happens if you don't find any trucks? What are you obligated for?

The answer: This happens all the time. Don't worry about it. The worst that can happen is the shipper will send some one to egg your house. But don't get too upset about that happening.

There is a real minority of shippers who think you have a whole line of trucks sitting right outside your door just itching to get rolling as soon as you snap your finger.

But the majority of shippers know you will have to search. Some shippers will want a truck "yesterday" but many will give you some time. Yes, you are competing with other brokers in finding a truck. That is, the shipper will give the load to any number of freight brokers and the first one that hits pay dirt, gets the prize.

Here is what you want to keep in mind. It isn't easy starting out from scratch. You don't know what to expect from you shipper and you don't know what to expect from your carrier. You are just hoping you have covered all bases and that everything will go smoothly.

And do you know what? With time you will find that it gets easier and easier. Your shippers will learn to trust and rely upon you. Your carriers will be calling you several times a day asking for loads.

THIS is when things start happening. And it is like a burst of fresh air. Plus, you start to make some good money.

So, don't let the "beginner's blues" overwhelm you. Stick with it. Give the best service that you can even when others don't treat you that way. And, in time, you will excel.

Freight Broker Business: What About the Economy?

One of my questions from the recent survey was: "Is the freight brokerage business slowing down with the economy? After all, with high fuel costs one might think that there is less shipping of cargo. This may be true to some extent. But .....

There are still tons and tons and tons of cargo to be shipped. It will not stop no matter how high the fuel costs or how bad the economy is. There can be slowdowns - yes.

But every industry is subject to cycles. Nothing goes up or down forever without reversing. Everything has its cycles and, it my opinion, if we are at the bottom of a cycle, it might be the best time to get in.

The freight broker business itself does not require a lot of s tart up money or overhead. A person mostly has to worry about their personal living expenses. If you are relying on a fast income to pay your mortgage or car payment - you had better just put off freight brokering for awhile.

I want to be honest with you.

But if you have your personal living expenses covered until you get established, then getting into freight brokering might be the smartest thing you have ever done in your entire life. If you have a vision for the future - a year or two or three or five - you are probably most likely to succeed.

I don't think any business will "deliver" in the short run and those that fall to believing there is quick money (in anything) will surely fail.

If you have that future vision - then come join us for the best training available. We will give you all the tools you need to succeed plus a whole lot more.

Freight Broker Problems with Double Brokering

Double brokering is when you give a load to someone and they in turn give it to another person/company behind your back. This other  person actually hauling the cargo is NOT the person/company that you have contracted with. When the first person gives this load away to another company - you have a potential problem.

Read on for more ....

Freight Broker Quotes

Just as sure as roses are red and violets are blue, each freight broker is going to be asked to give their rates or give a quote to shippers from time to time. There are several ways to do quotes. How do YOU handle this? Read more on the next page ...