Getting into the freight brokerage business promises great financial rewards and an opportunity for growth because of the improving economy that needs an increasing number of new brokers. Before launching your own freight brokerage firm, there are things that you first have to know before taking the plunge.
A good start will be to understand the role of a freight brokerage to the trucking industry and to the economy in general. A freight broker is a go-between the customer who has cargo to move and the trucking company that will move the cargo.
The Missing Link
The freight broker serves as the missing link between shippers and the shipping companies. Freight brokers negotiate delivery rates and schedules and coordinate with transportation companies that will move the load, enabling the carriers to maximize their loads.
The freight broker is the intermediary between the shipper and carrier in terms of following schedules and tracking movement of cargo. They inform the carriers on the shippers’ requirements and inform the shippers on the whereabouts of the cargo until it is received at the final destination. They are the check and balance that ensures that each step of the process is completed.
What It Takes to Be a Freight Broker
The first requirement to be a freight broker is to learn how the carrier industry works. Knowledge could be gained by actually working in any capacity in the carrier business. This will provide you an idea of how things are done in the world of shipping and transportation.
It is also important to have a working knowledge of computers as most of a freight broker’s work is done using this technology. Good communication skills will come in handy, as the freight broker needs to do a lot of negotiating with shippers on one end and the carriers on the other end.
Training for the job is essential in becoming a good freight broker. You can attend freight broker school or enroll in some online courses. Reading good freight broker training books will be a great addition also.