Get required paperwork – freight brokers are required to keep records of each transaction. FMCSA is specific of the documentation which includes bill of lading, contracts, receivables, payables, carrier qualifications…
- the name and address of the consignor (shipper)
- the name, address and registration number of the originating motor carrier
- the bill of lading or freight bill number
- the amount of compensation received by the broker for the brokerage service performed and the name of the payer
- a description of any non brokerage service performed in connection with each shipment or other activity
- the amount of compensation received for the service, and the name of the payer
- the amount of any freight charges collected by the broker and the date of payment to the carrier
- brokers shall keep the records required by this section for a period of three years.
- each party to a brokered transaction has the right to review the record of the transaction required to be kept by these rules.
Freight broker’s income
Freight brokering is a lucrative industry, freight broker salaries depends of their employers, but however range is from $60,000 to $90,000 annually, which is great if we compare US national median range for salaries $30,000 to 50,000.
Commission varies between 5-11 percent of the shipping charges or higher. For the freight brokers with own business this is the gross revenue and out of this amount they are paying taxes, payroll, rent, sales commission.
Freight brokering in 2015
Freight brokers have one of the most important roles of the transportation of goods. Every year demand for transport increases, in 2015 in the trucking industry it is registered 3% more revenue, compared to 2014.
They are taking care of the loads that shippers need to move and also they are taking care of the carriers to have enough freights to transport, this middle position is more and more required as freight shipping industry is growing. Low supplies entail increased demand of transportation
- Modern technology is making tracking easier and safer
- Fuel prices are low
- Solid income
- Stable industry
Every industry needs to have groups of people who are experts in their field, freight brokers are the link between every step in the freight process, connection between shippers’ demand for transport with the best freight quote of the carriers.
Although the transportation companies are not happy with existing of the middle man, they consider these people as an obstacle to to their direct customers.
The Important thing is that freight brokers have long base of carriers and they will pick the best one for you because they have the best pricing in the business.
Ability to find the best solution for your shipment will give you peace of mind, remember you can feel confident that your freight will be delivered and handled appropriately.
They are modern puppeteers of the freight business, they synchronize every move in order to obtain a perfect outcome. Relax and enjoy the ride!