Thankfully to the transport we can buy anything that we need no matter where it’s manufactured. Transportation industry is about 8% of US GDP. With these numbers, freight brokerage is the smart choice for job position because there is plenty of space for this business to grow. This is why freight brokerage is good business.
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Freight broker is the link or middle man between the shipper and authorized motor carrier, also known as a third party transportation provider.
Freight brokers are in the category of transportation intermediary. They neither can be classified as a shipper or as an asset owning carrier, but they still have a role in the transportation of goods and they are deeply involved in the transportation business.
Тhese guys have a great knowledge of the transportation business and they are using that expertise to:
They provide and connect this service to the shipper who needs transportation cargo, in other words, they arrange and move shipments for shippers.
Important for them is to find the best service to the shipper because great performed service entails long term clients and big amount of provided loads entail discounts or other privileges from the carrier.
You need to be an expert in shipping regulations because you need to:
As a broker you have to follow each step of the transportation process to make sure that the freight will arrive safely to its final destination.
Both parties have to be satisfied, it is the best way to achieve good earnings and ensure a stable future in this business. Be a great broker use your resources to help both the shipper and carrier.
Make research of the industries and pick something you are familiar with or you have experience. The best way to start is to start from a familiar point, the time that you will need to make preparation and plan will be shorter than the point where you need to learn from scratch.
How to choose Your Niche? It is always better to choose specific market, choose a field that you have a passion for or you have previous experience, in that way you will be more energetic in the conversations with the potential clients and that will affect on your final result.
Use the advantages of modern technology. Do I need freight broker software? To be more efficient in your tasks, in this modern age, you don’t have to do everything by hand or anything if a may say so, we have modern devices that can remember for us, that can remind us or even to do difficult calculations for us.
Those tech solutions will make you capable to manage:
Top 5 softwares for freight brokerage:
Be Proactive don’t wait for business opportunity to hit you in your face to start working, be a shark, go out there and make contacts with the shippers and carriers, talk with them and don’t wait too long to call you back.
Remember, you are the main force for your success, you have to make your move again and contact them again, be in touch with them, make friends with and offer a help or make positive suggestions, show them that you are a tough person who is ready to take care of their business.
Use social networks – stay on top of industry news to be in touch with the updates and new opportunities use Linkedin, Facebook, Twitter. Also get in touch with the new customers writing blogs on your website.
Walk into your customer’s shoes and feel their fears and concerns, step up with the friendly advice and earn their trust
Be curious for the new things, you may never know what will save your business. Try to learn more of everything that will open up a new perspective to the world and will give you new ideas for progress
You have to know the legal issues if you are operating as a freight broker, there are four legal documents that are required by FMCSA:
1. Broker’s Authority, available through the FMCSA for a $300 fee (non-refundable) charged during the application process
2. One of the requirements for freight brokers to operate legally is to have a freight broker bond, which you can obtain from a bank or bonding company;
In 2013 freight broker bond increase, It jumped from $10, 000 to $75,000 and with this legal force many of the nation freight brokers were forced into bankruptcy, they simply couldn’t meet the new requirements.
3. File a Unified Carrier Registration (UCR)
4. Processing Agent, which runs approximately $50, with form BOC-3
Business bank loan – be in a financial secure position to cover 2-4 operating months, be sure that you have enough funds to cover the cost for the carrier services in case your clients don’t pay you in time.
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