Freight Broker

It’s important to be able to transport freight from place to place. Whether a business is transporting goods down the street or across the globe, it is necessary for most businesses to ship freight that has been sold. The world has become a smaller place and more destinations can be reached thanks to trucks, freight trains, airplanes and giant cargo ships. But making shipping arrangements can be cumbersome, and sometimes a professional is needed to make sure that everyone’s best interest has been taken into account. That’s where a freight broker steps in to help.

Freight brokers do not ship items, and they never take possession of cargo, but what they do is make all the arrangements for a business’s cargo to be shipped. As an intermediary, freight brokers also help carriers. They help make sure that carriers are able to ship more goods – which means more business for the carriers. By helping these carriers, freight brokers are able to learn which carriers are the most reliable – and even who has the best pricing. They can use their experience to make recommendations to their shipping clients and make sure their clients are using trustworthy companies with the best shipping costs.

It is necessary for a freight broker to become familiar with the best carriers, since there are thousands of carriers to choose from. You can find carriers online, in trade publications or even at local truck stops. It is vital to a freight broker’s business to know which carriers are reliable and which are not.

Freight brokers have been around in the trucking industry since the 1970s. Back then, the regulations were so strict though, not many companies were willing to become freight brokers. Since then, regulations have eased and there are more companies willing to act on behalf of those shipping goods and the carriers.

For a freight broker, there are typically more than just the two parties (shipper and carrier) involved. There can be a freight forwarder, import-export broker and shipper’s associations. Freight forwarders work to make several small shipments into one large shipment. This makes shipping costs more economical since one trip can take care of several shippers’ needs. The import-export broker typically deals with customs and regulations. And the shipper’s associations are non-profit organizations that also help combine smaller shipments into one large shipment – again reducing costs and making shipping more economical.

To get into the business of becoming a freight broker, some recommend working for a carrier or a business that deals with shipping freight. This gives a future freight broker inside knowledge and experience on how the industry works. Sometimes freight brokers have agents. These agents represent the freight broker to businesses and carriers and helps increase business. Agents are also good candidates to one day become freight brokers.

Freight brokers may also choose a niche market to work in. There are the standard industrial norms (like raw materials) but there are also other niche markets that can be useful to freight brokers. For example, one kind of freight broker specializes in the retail industry. This company handles everything from promotional displays being delivered to stores the same day to shipping the resources needed for a store’s closing or opening. *

*entrepreneur.com – How to start a Freight Brokerage Business