Freight Brokerage 101: Introduction to freight brokerage

Apr 28, 2020


Apr 28, 2020

Freight Brokerage 101: Introduction to freight brokerage

With over 6 years of experience in transportation industry in North America, working mostly in freight brokerage and logistics projects, I want to share my knowledge.

What is freight brokerage?

Freight brokers act as intermediaries by arranging for the transportation of cargo between shippers and motor carriers. The selection of a reputable motor carrier who will transport the cargo is a very important process that should comply to the requirements set forth by the shipper.

Freight brokers play a pivotal role in the movement of cargo in the USA and Canada. The freight broker determines the needs of a shipper and then contracts a carrier willing to transport the items at a fair price to his brokerage.

You might ask: What about the insurance? Who is liable?

Freight brokers carry insurance to protect their shippers and their own brokerage from loss. But it’s not a requirement from FMCSA as much a safety net for the freight brokerage.

What’s the advantage of using a freight broker over an asset based motor carrier?

  • Save shipper time ⏳ by moving his freight at a fair price
  • Find the best price 💰 by contacting different motor carriers
  • Find the 🚚 truck capacity when needed
  • Contract a reliable motor carrier who can deliver the shipment on time and claim free

A quick note from my experience,

Brokering Freight is not for Sissies! You have to be driven by results, motivated and act with passion in order to achieve great success in this business!

Remember: Your attitude is Everything about Everything! 💡

In modern freight brokerage companies, the work is divided between 3 parties:

  • National Accounts Manager (Sales)
  • Operational Logistics Specialist (Dispatch)
  • CSR (Customer Service Representative)

To simplify: Sales Bring Customers -> Logistics Specialist move the freight -> Customer Service is track and tracing the shipments and update the client until the shipment delivers.

Building strong relationships with clients and carriers, is the Key 🔑 for a successful freight brokerage business.

In the next article, we will discuss about different types of freight and equipment. Ciao

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