Freight Brokerage 101

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What is a freight broker?

A freight broker is a person or an organization (freight brokerage) that acts as a bridge between a person or company that requires shipping services and a trucker or trucking company who can meet their needs. It is important to note that freight brokers do not actually ship, receive or transport any goods. Rather, freight brokers analyze the needs of a shipper and connect them with carriers that can transport the goods.How do I become a freight broker?

The best way to become a freight broker is to first gain experience in the industry. Starting off as a shipper, receiver, carrier, trucker, dispatcher, or as any other piece of the transportation puzzle, will pay great dividends on your journey to becoming a broker. An education in logistics can be useful, but industry experience is much more valuable.

To work as a freight broker, a broker or brokerage is required to obtain a license from the Federal Motor Carrier Safety Administration (FMCSA) in the United States. Also, freight brokers are required to carry insurance to protect both their clients and business from unforeseen losses. In some instances, freight brokers and brokerages are required to carry surety bonds as well.

The salary for freight brokers varies widely; factors such as years of experience, company size, location, etc. all help determine total compensation. According to Payscale, freight brokers in the U.S.A. have a median salary of approximately $43,000.

How can a freight brokerage help me?

Brokerages utilize their knowledge of the shipping industry, relevant technology, and relationships to aid carriers and shippers in transporting goods. You can find a freight brokerage near you on Freight Brokerage Director.

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