How Learning To Become A Freight Broker Can Help Truckload

I want to share a tip that could prove to start your 2013 in an awesome direction!  One thing I notice about being in the trenches is that a lot of truckload shippers really do not have a good idea of how truckload carriers and brokers operate, earn money or find available trucks.

I’ve also noticed that employees who have background working for motor carriers or freight brokers, have the business intelligence to make very smart money saving decisions on behalf of the companies they work for.  More importantly, they also know how to NOT make costly mistakes.  Since freight is a huge cost center for most of the people reading this, I thought that would be insightful information.

So if you’re in the hiring process, it is good to look for folks who have a background working for a motor carrier or freight broker.  But there is another alternative that is not nearly as expensive as hiring an industry bigwig.

***This is an awesome tip so please turn down the music and lean into your computer screen a little bit further so you don’t miss it.***

Its called…enroll yourself, your shipping person or staff into a freight broker course.  I know this sounds weird but just let the logic sink in.

There are a ton of really great regional programs or e-courses out there that teach people how to start their own freight broker businesses.  Some of these courses are incredible because reveal all the industry secrets; like how to use a load board, understanding invoice factoring, the importance of being bonded & licensed, how to negotiate & find carriers, learn about double brokering, how to track a gypsy carrier, understand rates by lane and negotiating strategies.

The beautiful part for your company is you or your employees can be trained as much as the broker you work with in a short period of time.  Plus out of pocket expense to your company can be as low as a few hundred bucks for this kind of training.  I guarantee if your company is shipping more than a few truckloads a week, your ROI will be paid in a few days or even with one load.

There are a ton of great freight broker courses through local community colleges or on the internet.  There are also a lot of shotty ones too.  To help weed out this process, there is a great one called FreightBrokerBootCamp.com that provides training and a ton of resources for less than $100.  You can enroll just Click Here!.

To sum it up, I’m not saying you need start a freight broker business on the side by any means.  But having employees that have inside intelligence to the freight world, your company can save boatloads of money.  You can either hire these folks or train them yourself.  Either way, if freight is a top cost center for your company your employees need to fully comprehend how truckload companies and brokers operate, otherwise you are leaving money on the table.

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Things you must know before enrolling into Freight Broker Training

A freight broker provides the communication link between an authorized freight carrier and the person or company that needs freight moved from one place to another. Many institutions provide training in freight brokerage, but it is not mandatory to have an educational background to broker freight. People who have worked for a licensed motor carrier can use the experience learned during their career to start brokering freight on their own.

Starting Out

To begin brokering freight, a few key elements are necessary to succeed. The most important step is to apply for licensing through the Federal Motor Carrier Safety Administration (FMCSA). This license can be acquired by filling out a form on the FMCSA website. It can take up to six weeks to obtain the proper licensing and a motor carrier number, which will be used to identify the freight brokering company within the industry.

Carriers

After obtaining a motor carrier number and the license to broker freight, a list of trusted carriers should be compiled to physically move the freight. The Internet is the best way to find licensed motor carriers and gather price quotes. Customers will want to know the game plan before they choose to move freight with a broker. Therefore, it is important to establish relationships and concrete rates with motor carriers in the areas where freight will be picked up and delivered before making any sales calls to prospective customers. The idea is to lock down pricing with motor carriers on multiple lanes in order to quickly supply customers with rates.

Terminology

There are many freight brokerage and trucking companies to compete with, so it is important to know the terminology. When a company or individual needs freight to be moved, or when there is a move available, brokers will often bid on the move. Bidding is where several companies supply the rate to the customer and the customer decides which broker will move the freight. Additionally, moves are often referred to as “lanes”. Customers often ship to and from the same locations repeatedly. These recurring moves present the perfect opportunity to sign contracts with customers and turn the lanes into “dedicated lanes”. A dedicated lane is a contracted, agreed upon, rate between the freight broker and the customer and can sometimes develop into a long-term relationship with the shippers and receivers, who may ship products of their own. Shippers and receivers will want timely pick-ups and deliveries and will trust a broker with their freight if they know everything will be on time and affordable. They will also be more apt to sign a contract with a freight broker firm if they know that their parent company regularly trusts them to move their freight.

http://freightbrokerscourse.com

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Freight brokers coping with Fuel-Price hike | Freight Broker Training

Skyrocketing fuel prices and the weak U.S. dollar are creating unanticipated new opportunities and challenges for local freight brokers and forwarders.

Since the cost of diesel fuel has risen 135 percent in the past year, these shipping intermediaries are watching customer loyalty erode as local manufacturers and importers struggle to find cheaper transportation for their goods.

“Because of the escalating fuel prices, manufacturers and shippers are breaking out of their routine because they’re being forced to look for more competitive pricing,” says Mel Eardley, owner of America Transport Systems (ATS), a San Antonio freight forwarding company with 14 employees. “Some of the loyalties built on customer relations are bending a little. We’re also getting calls from completely new customers, too.”

Freight forwarders are third-party logistics companies, also known as “3PLs,” that negotiate shipping arrangements and prices. They are the middlemen between two types of customers: those shipping goods and those who own and operate road, marine or air vehicles.

For example, if a local business needs to ship products to Buffalo, N.Y., a freight broker shops huge international databases for trucks and airlines that frequent that San Antonio-to-Buffalo “lane” for the best price and then coordinates the pickup and delivery of the goods.

In addition, the freight broker arranges for these same trucking and airline companies to refill their vehicles with cargo for the return trip.

Forwarders charge their customers a percentage of the cost of the total transaction, which is based on existing fuel prices and a variety of other factors, including the type of transportation, distance and delivery complexity.

So when fuel prices rise, these forwarders pass the cost on to their customers in the form of carrier fuel surcharges, calculated by using fuel indexes. These flat-fee surcharges have risen 11.5 percentage points in the last six months from 18.5 percent in November to about 30 percent today.

So, a $10,000 shipment in November that yielded a $1,850 surcharge would now have $3,000 tacked on to the price. Customers are not happy, but freight forwarders hands’ are tied.

“We’re in a very competitive business, and it is very difficult to retain customer loyalty when prices are an issue,” says Oscar Garcia, president and CEO of Global Highways Inc., a San Antonio freight-forwarding company with five employees. “On the flip side, we’re getting calls from customers who have never contacted us before. They’re shopping around now purely for price.”

Pamela Grzonka, a San Antonio branch manager for the four-employee broker and freight-forwarder Pioneer International — Texas, concurs.

“I can’t say people are happy about it (the surcharge). I get a lot of complaining about it.

“But if they’ve got to move their freight, they’ve got to move their freight,” she says. “I feel bad. But the price of fuel gets passed on to everyone. I’ve got to feed a family, too.”

Exports flourishing

While these fuel surcharges are most burdensome to companies shipping domestically and local importers, they are not affecting exporters. Thanks to the weakened U.S. dollar, exports are soaring.

“The dollar is so low that exports are booming,” Grzonka says. “Europe is paying for the freight because they’re getting more for their dollar.

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Importance Of Becoming A Freight Broker Agent

Managing a large-scale of business is extremely crucial, especially if you want to make certain that all the needed materials and products are delivered safely towards the right place on period.

It is a renowned proven fact that Logistics business is the billion dollar industry. A huge value associated with commodities is technically shipped or transferred in one place to another inside a particular given time as well as place. And the freight broker shall result in any movement of the actual consignment as liaison broker.

People may not see the benefit of being a freight broker agent but this kind of role assists shippers to locate reliable or dependable carriers which are somehow difficult to find. Consequently, sufficient commissions are usually earned from their great efforts associated with helping with both parties (consignor and also the consignee) wherein these types of agents support in filling up their trucks and obtaining money for conveying a variety variety of things.

Significance:

The importance of being among the key players of this industry would be to effectively provide the right movement of the particular business resources as well as supplies. When we say motion, both should coordinate accordingly well or the company will certainly fail.

If you are enthusiastic and you need to pursue yourself in this particular field of industry, you need first to become considered as a certified freight broker agent. There are several colleges and/or online learning websites which may be the foundation of potential freight brokers, which caters most in-depth personal training programs available on the market. Moreover, whenever you have completed working out, some institutions will also provide a chance to those eligible contenders to become a part and help you discover prospective firms in the commercial.

There are several explanations why one should consider employed in the Freight Industry:

• Work from home all over the world

• Freedom to save money time with your loved ones

• Legitimate full-time company

• Affordable to begin

• Training available from comfort of your house

• Proven strong Business with growth

• Lucrative to 6 figure income for devoted and motivated individuals

• Respected Industry

At some level associated with career opportunities, you can proudly say how the job is worth satisfying. By embracing the business with sincerity, respect and dignity, you see the good vision and mission that you're not only earning on your own but also helping and answering the needs of the folks every day, just right from the screen of the computer. Furthermore, there is an attractive compensation that many agents will definitely generate up from 50%-60% or even above, depending on the arrangements produced by the brokering firm and also the quality and experience from the agent.

That is why this sort of work is worth motivating and motivating, due to the sense that you could get more earnings as well as the drive of encouragement that you'll require, to always provide high quality work, for you to get the necessary compensation. You can assess exactly how your services are and the other possible ways. You can still enhance it in order to get more clients and accomplish your goals. You can be a reliable freight broker agent with the knowledge adapted in the training or through encounter. Your achievement is an excellent reflection of their achievement.

How to Become Become a Freight Broker Agent

Each time a company intends to transportation goods by truck then 3rd party intermediary coordination is needed. This third party intermediary is actually a freight broker agent: a middleman who's liaising for goods created and transported by 1 company to other transport companies. However, this individual is not contained in person to oversee the completion of transportation in a secure manner. Instead, the primary job of such one is to negotiate with companies planning to transport goods with respect to the manufacturer. Moreover, this person is accountable for making suggestions in regards to what transportation means can supply and how product security and timing deadlines could be met.

It should be mentioned that almost all companies around the world require the transportation of goods either available or for purchasing uncooked material. These companies always seek means through which they can prevent their own huge goods transportation costs from exceeding tolerable amounts. Other transportation companies might be shipping lines or truck companies which presents ample scope for a freight broker to possess a very prosperous career of their own.

To become effective with this role, a person must enroll with this subject at a school which has offered it. The broker would be very knowledgeable of numerous transportation facilities with their associated advantages and disadvantages that could hamper or help the ultimate transportation of goods through seller to buyer. The broker is not just well-versed in domestic as well as local transportation scenarios, but also has a great understanding of how worldwide transportation functions.

An effective freight agent agent would also possess a strong connection with the companies active in the transportation of goods and become well-reputed for providing dependable services to customers. The broker must have the ability to solve problems quickly, which would add in order to his reliability.

To be more good at his profession, a freight broker agent must keep up with the customer's list by himself. This can be carried out by emailing, telephoning or using other way to talk to a delivery yard's owners, product manufacturers and truck companies. It must be considered that a person with this role would seek two types of client. The first are shippers who plan to receive products, so equipment or other materials ought to be shipped to them. The second type of client is really a carrier who accounts for the movement and transport of goods or items in one location to another.

A freight broker agent should be persuasive and persistent since it would considerably enhance his expertise and increase his usefulness. The agent must always make sure that he has linked the best carrier to the right shipper since it would help them each in understanding the other peoples terms and would avoid any liabilities that could cost him his fee. If he is efficient, he will be created a resident agent through the client, which is a mark of success since the agent would now continuously receive orders and would look after all transactions by exactly the same client, which would ease the whole process.

How to Become a Atex Freight Broker Training Or One-On-One?

Lots of people jump into this business since the concept is so easy: you first find clients; second, you find trucks, and third, you collect a fee. It all sounds very easy. Well, not so fast. It gets a a bit more complicated.

This apparent simplicity is actually deceiving.

As a truck broker you're the middle man involving the customer and a company. So, you need to learn to deal effectively with each sides. There are many procedures that have to be done and they have to be done in proper purchase - or everything drops apart.

For example, with the shipper, you need to first get them to "good for their money". This may be challenging in a class simply by itself. Then you need to understand how they operate - the number of loads they give, what type of trucks they require, where they pick upward, where they deliver in order to, what type of freight are they shipping, what special requirements do they require. This is only the start.

For the carrier, you need to make certain they have their correct authority. You need to ask them to sign your broker-carrier agreement which will spell out your working arrangement together. You need to examine their safety record. This, too, is only the starting.

So, the question is "How Does an individual Learn All This? "

There are many individuals who grab whatever free or even low-cost training material that's available. This is good. This is a begin.

But you are probably mistaken if you feel you can learn how to be something just by reading books or hearing CDs or watching movies. It might be carried out - but it's not likely. Most people need the mentor, a coach, someone who is really centered on training - detailed, step-by-step, one-on-one instruction.

The best way to understand freight brokering is to possess someone "hold your hand" either employed in a brokerage (greater than a week or two) or using a mentor you can trust over the telephone as well as Internet.

Plus, you need someone readily available for months, not just during a couple weeks of training. Most of your good questions might not arise until you happen to be working for several several weeks or longer.

Getting into this business is really a big step for most of us. Some people mull this over for months as well as years. This is understandable in some instances.

But if you mull it over too much time, you could lose your own opportunity. For those who require time, they should seek away reading materials or other products which have real content. You don't always would like to get hit with a sales hype.

Constrain your search to pay attention to reliable, useful and objective information and be prepared to pay a few bucks if it's not free.

The Important Role of a Air Freight Broker Agent

A freight broker agent is really a person employed by companies which are actively engaged in the actual transportation of cargo. This transportation may end up being either local or international as it's a huge business nowadays in order to import and export commodities in bulk in one place to another. Such a person is a 3rd party agent who is accountable for managing the whole procedure for the carriage of products, but this does not imply that this individual has to really be present when transportation is happening, whether for import or even export. The person in this role accounts for the proper transportation of goods in one location to another but he also offers to bear other aspects in your mind.

In most businesses, deadlines are really important and there isn't any room for relaxation whatsoever, or a high percentage is going to be deducted from the sender's balance in addition to his potential business potential customers. Therefore, a freight broker broker is highly-important nowadays to companies on both shipment and carriage side from the deal. This role is vital as it dictates the actual terms for efficient as well as timely transportation of products from exporter to importer. The other activities that follow all rely on the decisions of this particular person, so he can make or break the whole deal of timely freight delivery. The terms and problems are set and examined by this agent, which are included within the final contract for the actual efficient transportation of products.

The freight broker agent can also be employed by companies because he's good knowledge of the factors that may influence the business associated with cargo transportation. Aspects like weather, taxation department delays, etc. are all reviewed as well as analyzed by this individual before he gives their estimate on what will be the proper time and date for delivery from the trucks. Someone performing this part is therefore not only reliable when it comes to estimating the time necessary for transport but also has got the responsibility of complying along with safety conditions for climate, following routes that aren't in conflict zones, reserve trucks or way of transport, etc.

The importance of this role is ideal for companies involved in day-to-day dealings and transportation of products, in the case associated with either imports or exports. These companies find this very messy and difficult sometimes to manage the whole transportation facet of things with the non-professional and unacknowledged employees they have. Therefore, if they pay a tiny bit of their transportation charges like a commission to a freight agent then it's not a costly affair on their behalf and would save the companies from the majority of the tensions of transportation. Shipping lines or trucks can both be used.

A freight broker agent is important as he's knowledgeable of taxation laws and regulations, easy and quick paths for trading goods, etc. because he has studied these subjects in a school offering a level or other course on becoming effective with this position. Moreover the strengths and weaknesses of numerous transportation facilities would be recognized to this agent who is actually responsible then to innovatively as well as smartly solve the problem in the perfect way. This is the major reason why businesses rely so heavily about the person carrying out these types of tasks and sometimes make sure they are a permanent part of the company as they tend to be imperative for transporting the products made with so much effort to the target clients.

a1 Freight Broker Training Step by Step

Shippers are gradually going out of company today. How do I understand this? I have been performing some cold calling. Shippers are giving upward. Why? Higher prices. Most shippers have a higher overhead. Employees to pay, carriers to pay, suppliers to pay, etc. etc. Then the minimum wage raised this season, fuel prices increased, and the customer demand transpired, therefore the supply require decreased.

Shippers decided to try reducing but when that did not work, they got out. Everybody loses. This holds true in any business which is true in the freight broker business community also. If shippers don't possess customers, they won't need the carrier. If carriers can't discover shippers, they won't need their own truck, therefore neither one will require a freight broker. And again, everybody loses. How can freight agents possibly avoid this? By having had the correct freight broker training... a1 Freight Broker Training

Realizing that BOTH the shipper and also the carrier are your clients. Why customer service is from the utmost importance to the carrier along with the shipper. What prospecting is as well as how it's done. Why honesty should continually be the best policy. Knowing what your shipper as well as carrier need and/or anticipate from you. Where to find your own shippers and carriers. Building and maintaining your own shipper and carrier bottom.

How and why to possess a relationship with your service providers and shippers. If your freight agent training did not include all this and more, then you missed on some very important information that brokers and agents have to know. While knowing is just half the battle, doing is the partner. Without doing, knowing is of absolutely no value. Shippers, carriers and brokers all know something, they can't do without one another.

Lawsuit filed against DEMCO EXPRESS & owner Dennis Mekenye

HomeUSLegal ActionsLawsuit filed against DEMCO EXPRESS & owner Dennis Mekenye -Freight Broker AMERICAN GROUP includedPosted on Dec 10, 2012 in Legal Actions, News & Views by PMC

A lawsuit seeking recovery for the cost of this NATO grade ammunition valued at $84,000.00 has been filed by the owners of UN AMMO against DEMCO Express and their broker, American Group of Phoenix.

Just when you thought the name of Jabin Bogan had faded into the obscurity it deserves, the Bogan saga continues!

On December 6, 2012, a lawsuit was filed in US District Court – Fort Worth division, by David Lansky and his company, United Nations Ammo against Dennis Mekenye and DEMCO Express, Bogan’s employer at the time Bogan supposedly took the wrong turn into Mexico and lost the load of ammunition destined for UN Ammo in Phoenix.

The lawsuit alleges that Demco, which had been hired to deliver the shipment and which employed Bogan, had breached its duty by failing to deliver. The suit also alleges that American Group, LLC, a third party that connected Lansky with Demco, had been negligent in failing to ensure he was contracting with a reliable carrier.

Cited in the lawsuit was the FMCSA out of service order issued against Demco in the summer citing the company as an “imminent hazard to public safety”.

The investigation by FMCSA found that Demco had falsified drivers’ records, allowed operators to drive with suspended licenses, used drivers without licenses, and did not properly screen drivers for controlled substances.

As has been the case since shortly after Bogan’s arrest, DEMCO owner Dennis Mekenye has disappeared once again and the phone number for him has been disconnected.

FMCSA allowed DEMCO to resume conditional operations in August after undergoing a compliance review.

All told, the plaintiffs are seeking $84,435.00 for the lost ammunition, court and attorney costs and anything else the Judge see’s fit to award.

It’s highly doubtful though that the plaintiff’s will recover anything from Mekenye, a Kenyan immigrant even if the suit is successful.

Jabin Bogan was not named in the lawsuit. No date has been set for the action to be heard.

Tags: Ammunition seized in Mexico, Demco Express, Dennis Mekenye, Featured, Jabin "Wrong Way" Bogan, Lawsuit against Jabin Bogan, UN ammo

35 years in the trucking business and living in Mexico for the past 15 years, make me uniquely qualified to offer my insight and opinion into the Mexican trucking industry and other border issues. A contributor to SiriuxXM Road Dog Channel 106 and also to the award winning Lockridge Report, Mexico Trucker Online continues to publish the unvarnished truth about the subjects we cover.

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A Growing Truck Freight Broke Not Priced Like One

Disclosure: I am long AUTO.OB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)

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In ten years, this company has multiplied its revenue 100 times. It hasn't posted a losing year in a decade. What's more, over the period shown, this company has made exactly zero acquisitions. All of the growth has been internally generated.

The company is Autoinfo (AUTO.OB). Autoinfo is the corporate parent of Sunteck, the tenth largest truck freight broker in the United States. Sunteck is a non-asset-based broker, meaning it doesn't own the trucks - it just provides the logistics.

Truck freight brokerage is a major subsector of the third-party logistics industry ("3PL"). You can read more about the 3PL industry here. Within the 3PL industry, truck freight brokerage is one of the most straight-forward, and thus low-margin, businesses. But there is also an argument to be made that U.S. truck freight brokerage has one of the better growth outlooks in 3PL. You can read Brad Jacobs, the CEO of XPO Logistics (XPO), make that argument here.

Apart from AUTO, there are three U.S.-based brokers that are (1) publicly traded; (2) non-asset-based; and (3) focused mostly or wholly on trucking. Here they are:

The average 2013 P/E for these companies is 18x, and there isn't a whole lot of variance. These three companies operate very similar business models, and the market has awarded them very similar - and very much above-market-multiples of earnings.

AUTO is much smaller than the three businesses listed above, but it is in exactly the same business. Here is the same table again, but with AUTO added in:

Which of these is not like the others?

AUTO trades at a 65% discount to its peers. Value investors often talk about buying "fifty cent dollars." Well, AUTO looks more like a thirty-five cent dollar, and a fast-growing one at that.

There is one important difference in the way these companies operate. CH Robinson (CHRW) generates its sales almost entirely from brokers who are salaried employees of the company. By contrast, Landstar (LSTR) and Autoinfo generate their sales almost entirely from brokers that are independent, commission-based agents. These independent agents are in essence third-party contractors who use the parent company's brand name (e.g. Landstar or Sunteck), back office and IT systems, and shipping networks. In return, the parent companies keep a cut of the business the agents generate.

On occasion, some investors have voiced concern about whether independent agents can simply leave and go work for a competitor, and whether that possibility makes the independent agent-based business model inferior. Does it? Maybe, maybe not. Looking at the ten-year financials for Landstar and Autoinfo, it is hard to find any sign of an inferior business model, whether as measured by growth rates, which are exceptional for both companies, or by margins, which are equal to those of similar-sized peers.

For an agent, switching parent companies is a lot of work. The agent must transfer all financial and technical links to the new parent, and every customer must open a new account with the new parent company. But it is certainly not impossible.

The stock market seems undecided about whether the employee vs. agent issue matters. At the moment, LSTR, an agent-based broker, trades at a 20% P/E discount to CHRW, which uses close to 100% salaried agents, and Echo Global (ECHO), which is about two-thirds salaried. But LSTR has also traded at an equivalent multiple to CHRW and ECHO at many times in the past.

The AUTO/Sunteck business is almost identical to Landstar's, albeit much smaller. Both businesses are even based in Florida. The market has never been shy about giving LSTR a 16-20x P/E; what multiple should the market give AUTO? Even using a highly discounted 12x multiple in order to account for illiquidity and the risk of agent defection, AUTO should be worth close to $2.00 based on a reasonable $0.15 estimate for 2013 EPS.

Yet today AUTO trades at $0.85, a 6x P/E looking forward. Usually such a low earnings multiple indicates that a company is deeply cyclical, has serious operational problems, or competes in an industry in terminal decline. None of these concerns are remotely applicable to AUTO, as you can tell from glancing at the historical financials at the start of this piece. Nothing is wrong with AUTO. In fact, Sunteck is a very good little business-it is simply unknown by most investors. The market cap is a microscopic $30 million, and the shares are tightly held by just a few parties.

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The float - the portion of the company owned by "everybody else" - amounts to just $8 million at today's price. The conventional wisdom says that a tiny float won't incentivize institutional investors to descend en masse and close the valuation gap. But the less-recited flip side is that even a minor amount of capital will be sufficient to have a major impact on the price of the shares, whether through open market purchases or through an outright acquisition of the company.

And there are actually some pretty major amounts of capital out there. As I've written about previously, there is a lot of money flowing into 3PL strictly for the purpose of consolidation. XPO has $300 million in the bank earmarked specifically for acquisitions, and its CEO has said explicitly that U.S. truck brokerage is his target. AUTO is unquestionably on his radar. AUTO is on the radars of a number of other public and private 3PL CEOs as well. Private equity firms are lurking as well-freight brokers make attractive buyout targets because of their steady profits and the ease with which they can be combined. All that money and all those interested parties make AUTO a coveted asset.

There is also pressure to sell. In April two activist investors (Baker Street and Khrom Capital Management) filed a 13-D reporting 14% ownership of AUTO and requesting that the company explore a sale. Forcing a sale will be difficult without the cooperation of the other major holders because insiders own so much of the company. But the activist pressure should be enough to get the board thinking hard about how to bring the AUTO share price more in line with the intrinsic value of the company.

AUTO might be too small for big investors to pay attention to it, but at $300 million of gross revenue, it is plenty large to be of interest to a number of 3PL industry players. Its growth prospects are superb and its current price makes it a compelling bargain. How much longer will it trade publicly?

Monte Sol and its affiliates own shares of AUTO.

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Nicky Hammerlane: The Case of the Missing Lane | Part 1 - Getloaded

Nicky Hammerlane here. Been busy the last couple of months hauling for my son and grandsons’ trucking company.

Every so often they get caught short on drivers and they call Grandpa out of retirement. Spent nearly 30 years before retiring and taking my old International home, but getting on the road’s in my blood, so from time to time I take up the slack.

Like any old trucker, I enjoy sitting in the drivers’ area of a truck stop restaurant, listening to the new and old truckers’ stories. Every so often, some trucker recognizes my black Stetson on a hat rack or the back of a chair.

A couple weeks ago I sat drinking my morning joe in a small, independent truck stop café between Jackson and Nashville on I-40. I looked up to see an attractive woman in her mid-forties staring at my hat. She caught my eye and said, “Mr. Hammerlane?”

I stood and said, “Nope, that’d be my dad. I’m Nicky Hammerlane.”

She said, “You’re a hard man to locate. I’ve been trying to catch up with you for better than a month, Mr. Hammerlane...“

I interrupted, “Please call me Nicky. People who call me ‘Mr.’ are usually giving me a traffic citation. What can I do for you?”

“Well … uh – “ she stuttered, “I was told you might be able to help me. My name is Beth Wheeler.” I invited her to sit down on the bench across the table.

“What can I do for you? Would you like some coffee?”

Beth responded, “No coffee, thanks. To get right to the point, my little trucking company is in trouble, big trouble. And I’m at my wits’ end on what to do. Do you have some time?”

“Trucking can be a hard business, especially when things start to go wrong," I said. "But nearly everything is fixable, you just need to see the road through the traffic. I’ve got time. I’m waiting for my next load.”

Beth took a deep breath. “Mister….I mean, Nicky, here’s the situation. My one major outbound freight account closed its doors two months ago. All I got was a fax saying they were ceasing operations. That account represented nearly 70% of my total revenue, and the backhaul freight only accounted for 30%. Losing this shipper has really caused a steep drop in revenue."

"To add to the problem, my base area typically has extremely cheap outbound freight," she continued. "This one customer was an exception to the rule. So there isn’t any decent-paying outbound freight available, and the majority of my inbound has been brokered freight. And to be honest, the outbound paid so well, I never worked on getting a great rate back. It was more important to get my trucks turned around ASAP, to get the next outbound load. The only good news is at least they didn’t close down owing me a lot of money.”

I listened as she explained she had six trucks and a great bunch of drivers. With the freight and revenue loss, it was becoming harder and harder to keep them loaded. The fact was, if revenue and loads for the outbound legs of her freight lanes didn’t increase shortly, she was going to have to start laying off drivers.

“How do you decide which drivers to let go?" Beth tearfully said. "It’s like telling a member of your family, 'I can’t take care of you any more, so you have to leave!'”

I handed her a paper napkin.

“Several years ago I was faced with a similar situation, and as you can see, I’m still here and my trucking company is still thriving under my son and grandsons," I said. "So let’s see what we can do.”

We talked for another two hours in the café booth, looking over the details of the freight lanes for each of her trucks she’d had before the customer shut down operations. I sat back rubbing my chin, a habit when I’m thinking.

“Here are the challenges I see you need to overcome. One, your current inbound freight needs to be completely reworked so that your highest rate is on your inbound loads. Two, you still need specific freight lanes for each truck and driver that generate the needed revenue each month. You were doing that right, at least halfway. And three, diversify your customer base so you don’t have any more than 30% of your revenue tied up in one shipper or broker.”

“Nicky, those are some pretty tall orders.”

“Well,” I said, “you’ve got to start someplace, and I’ve always found if you take on the most difficult task first, and complete it, each task that follows falls into place.”

“So you think you can help me?” Beth asked.

I nodded slowly.

“I’m pretty sure I can. Where’s your trucking company located?”

“Just outside of Jacksonville, Florida,” Beth answered, then hesitated. Finally she asked, “What’s your fee for helping me do all this?”

I grinned at her.

“Beth, you probably couldn’t afford my fee, if I were to ask for one. But if you feel it’s worth it when I’m done, just make a contribution to the Northwest Tennessee Disaster Service, to help those folks down in Louisiana flooded out by that hurricane.”

“Sounds more than fair. So where do I start?”

I began, “Your first assignment will be to replace that lost revenue by finding the best paying and most profitable freight lane coming into your home terminal. Start by looking into locations no more than 1 or 2 days’ legal driving from your home base. Initially, you’ll need to get yourself a good load board service, and probably contact freight brokers that handle those areas.”

We stood up and Beth reached over to shake my hand and thank me for my time. I explained that I’d make it a point to be in her office in Florida within the week to go over what she found.

“Give me a call at this number,” I passed her one of my business cards. “And then we’ll get together and figure out which loads will work and which won’t.”

As she left the café, I was on the phone to my grandson, working out the details to get me through Jacksonville sometime in the next week.

Join Nicky next time for the conclusion of the Case of the Missing Lane. How will he find the decent-paying freight Beth needs to stay in business?

About the author: Timothy D. Brady is a speaker, business coach, and trucking industry guru. He provides training and educational presentations for small to large trucking companies, logistics organizations, and community groups. Learn more about Tim at http://www.timothybrady.com/

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Guides on Selecting a Freight Broker | reight Broker Training Course

Posted on Nov 28, 2012 in Blog

The truck capacity shortages shippers experienced last fall are sure to continue as the year goes on. But armed with a good freight broker, you can weather the storm. Many shippers turn to brokers when freight demand far outstrips carrier capacity. Shippers using a broker can access increased capacity without the hassle of managing new carrier relationships.

A quality broker may be the most versatile component in your arsenal of freight service vendors, says Chip Smith, president and CEO of Twin Modal, a transportation intermediary. He offers these 10 tips for selecting the right freight broker for your needs.

1. Make sure the broker is licensed. Federal law requires anyone arranging transportation for compensation to have a federal property broker license issued by the Federal Motor Carrier Safety Administration (FMCSA). Be wary of motor carriers who broker loads without broker authority. For-hire motor carrier authority is not the same as broker authority. Before you choose a broker, make sure they have the proper authority and license.

2. Look for multiple modes. Most brokers provide truckload motor carrier service. Some also offer additional service options, such as rail intermodal, air freight, warehousing, LTL, flatbeds, vans, reefers, padded van, and/or logistics management services. Brokers with multiple modal options can back up shortages in one mode with capacity in another. They also provide more options from a single source.

3. Investigate the broker’s carrier selection process. You wouldn’t trust your freight to just any carrier, and neither should your broker. Before tendering loads to carriers, brokers should—at bare minimum—verify carriers’ operating authority, safety rating, and insurance coverage. In addition, a written contract between broker and carrier is essential.

4. Examine the broker’s trucking selection process. Find out if the broker simply uses electronic posting services—where brokers post available loads and carriers post available trucks—or if it draws from other fleets as well. Large motor carriers and private/dedicated fleets are great resources for trucks, but typically are very selective about which brokers they will work with. They also don’t post available capacity. Brokers using other resources will cover your loads more effectively than those only using electronic posting services.

5. Evaluate the carrier management process. To avoid unwanted surprises and problems, brokers must communicate constantly with carriers. Giving instructions over the phone is not enough; look for brokers who communicate in writing when instructing carriers. Ask brokers how they match carriers to available loads. How do they confirm loads were picked up and delivered as promised? Ask to see copies of their correspondence with carriers to see how comprehensive it is.

6. Run a credit check. Freight brokers should be financially solvent and able to pay their carriers. Find out how prompt they are in paying vendors. Are they profitable? Are there any liens or legal judgments against them? Stay away from brokers with financial issues.

7. Find out how long the broker has been in business. A company in any industry faces its greatest challenges during the first year or two of operation, when survival is the primary objective. Companies that survive and prosper in service industries have a history of executing successfully. Align yourself with a successful, experienced broker.

8. Be sure the broker carries adequate insurance. Most brokers carry contingent cargo insurance to pay shipper loss or damage claims if the carrier and its insurance company refuse to pay. Contingent cargo coverage provides shippers a second level of protection, as long as a claim is valid. Look for brokers who also carry liability insurance as well as ‘errors and omissions’ insurance.

9. Look for enrollment in integrity programs. Licensed property brokers who belong to the industry trade group Transportation Intermediaries Association (TIA) are required to abide by a strict code of ethics when dealing with shippers and carriers. Choosing a broker who is publicly committed to integrity is always a good way to avoid problems.

10. Get it in writing. Make sure you have a written contract with your broker that explains the terms and conditions of your agreement. This helps avoid costly misunderstandings and allows each party to have realistic expectations. Make sure your contract properly addresses the unique role of the broker. Don’t use a motor carrier contract, for instance. TIA and the National Industrial Transportation League have developed a model shipper-carrier contract that also makes a good broker contract. It is available on their respective web pages at www.tianet.org and www.nitl.org.

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Antiphonist Blog: Why Freight Broker Training Is Essential?

If you are planning to join millions of profitable agents and freight brokers in the United States then you need to undergo a freight broker training. Some may not agree on this but the statistics prove that individuals who have undergone training in freight brokerage have a good chance in succeeding in the industry than those who were not able to go through proper training. There are several reasons why freight broker training is a must if you are planning to have a career in this kind of industry. Some of these reasons are enumerated below:- If you undergo proper freight training the best practices and systems will be right at your fingertips.- 

With the recent developments, online training courses as well as formal education have created systems to make it easier for the market neophyte to move smoothly in this type of industry. Generally, best practices of the market are isolated by these trainings and will be thought for you to help you out on the process and not to struggle in the dark if you eventually enter the market and more essentially, will help you avoid committing mistakes since you will have enough and right training on what you can expect, how to manage things, what to do and others.-

During training you will undergo simulation paper processing such as regulatory requirements, proper filing of load confirmation sheets and others. It will help you feel more at ease and expert if you are finally doing it on your own. Mistakes during filling up several forms can be committed only during training but never in real world because it will not only cost you a lot but might lose your clients as well.- Several training programs provide their graduates placement or referrals in brokerage houses in case they want to become a broker agent first.-

The majority prefers to be a broker agent first before becoming a freight broker since commencing a career as an agent will not oblige you to have a high financial investment. It is best that you learn more about freight agent and freight broker so that you will be able to differentiate the two.- During training a real market experience is being shared.-

Undergoing freight broker training in school or online is a great advantage since you will be able to interact with real experts in the industry, you will be able to ask questions and an answer can be provided instantly. And more essentially these experts have better knowledge about the industry which may take many years to learn on your own and these can be shared with you while you are in training. They can even tell you their deepest secrets on how to succeed in the freight market.

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England Logistics Buys Freight Broke | Transport Topics Online

Third-party logistics provider England Logistics has acquired certain assets of freight broker Kampstra Transportation & Logistics.

A division of C.R. England Inc., Salt Lake City, England Logistics will integrate Kampstra, Portland, Ore., into England’s brokerage business.

Jim Kampstra will serve as national accounts manager and report to new general manager Shaun Beardall, who had been England’s director of container operations.

“With this acquisition, we know our customers will continue to receive the same quality service they enjoyed with Kampstra Transportation while benefiting from a greater industry footprint and the vast service set England Logistics brings to the table,” said Jason Beardall, executive vice president of England Logistics.

England said the deal will provide greater service to its brokerage customers throughout the United States, especially in the Northwest.

England Logistics, a full-service transportation and logistics provider with offices in North America and China, works in a complete line of transportation modes including truckload, less-than-truckload, intermodal, freight forwarding and supply chain management.

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Know all about the Freight Broker | Get Freight Quotes

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What exactly is a freight broker? This logistics service provider is actually one who offers various ways to solve different shipping and delivery requirements though solutions based on a real supply chain. This individual comes from an organization which functions as a 3rd party provider between shippers and transport companies.

As 3PL or 3rd party Logistics suppliers, they can improve the daily functions of your organization by emphasizing your logistical needs. Consequently through this provider, you won’t need to go through a lot of hassles in managing numerous shipping and delivery solutions when you just need to consult a single organization which could arrange everything on your behalf, in the best way possible.

Numerous services are crucial for each company’s transportation needs. The simple fact that there are millions of choices available could make the entire operation more challenging. It may be quite difficult to find the best service provider and the ideal solutions. And also, it is more challenging to find the top companies with the cheapest service charges. With the experience, expertise, bargaining skills, and influence of a freight broker, you can acquire a lot of savings every time you transport items. They can also manage the flow of your supplies by controlling freight requirements. Best of all, they can effectively expose you to major carriers and shipping providers.

In contrast to freight forwarders, every freight broker doesn’t work as a carrier but only as a contact that plays an important role in the movements of freight. A representative identifies the requirements for the shipper with the right service provider and shipping alternatives which comes with an appropriate price. You need to establish an excellent relationship with 3rd party provider to enjoy the benefits of outsourcing logistics and supply chain procedures. In any company, knowing the terminologies and ideas which will affect total earnings is important so as to determine the best actions which should be taken.

Shipping and delivery along with logistics are just some of the most crucial functions for a certain business or organization. As a result, it is very important understand the things associated with better shipping, delivery and logistics services. The term freight is commonly relating to companies which depend on the transport of merchandise and products for much better transactions. Freight shipping is simply a term used on goods that are often transferred by the truckloads. It may seem simple but moving products and resources to a different location could be complex. The tasks required may cause confusion just in case correct planning and supervision aren’t applied. This is why most companies seek the assistance of third party logistics providers such as a freight broker.

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Niche Marketing for Freight Brokers - Freight Broker Training

AppId is over the quota

One of the hurdles for entrepreneurs fresh out of freight broker training is establishing a solid reputation as a reliable service provider. Shippers want to be sure that you can guarantee their loads’ safety and carriers want to know they’ll get paid on time.

 

Small or new brokerage companies have a way of addressing these concerns and at the same time jumpstarting their earning potential the first year. They find a specific segment in the market that larger firms have overlooked or ignored and specialize in servicing that group. It’s called niche marketing and it’s the easiest path to beginning your brokerage business.

 

One, you get to know your market really well. Serving that market day in and day out, you learn about its standards, idiosyncrasies and special needs. Such expertise goes a long way in acquiring your customers’ trust and in establishing a solid reputation for yourself and your business. Eventually, you develop a profitable network of shippers, carriers, and strategic partners which you can easily tap for business and which can also be a springboard for future expansion.

Two, you can focus your marketing efforts with laser-like precision. Marketing dollars are usually wasted when you market to a broad audience that may not even be listening to you. Targeting a specific slice of the market helps in creating a characteristic customer profile, enabling you to craft messages that push their emotional hot buttons every time you reach out. And because your messaging resonates with their pain and pleasure centers, you get more positive response and more business.

How to Choose a Market Niche

Some freight brokers already know what markets to target even before they get the necessary knowledge from freight broker training. For others not so lucky, they start from the ground up.

If you’re from the last group, there are two ways on how to choose your market niche:

Make an honest assessment of your skills, talents, interests and personality and determine how this will come into play in your freight broker business; or,Scope out the segmentations in the industry, choose a specialty, then learn everything you can about how to service that sector.

In deciding on a niche, find one that you like but have enough potential for growth to sustain your business over time. Some freight brokers, for example, choose to serve market niches or segments related to their passions and interests like antiques, microchips or cars.

By focusing on a niche that you’re enthusiastic about, you’re able to differentiate yourself from the competition with a can-do, bend-over-backwards type of service. And you know how it is: a satisfied customer is a happy customer is a repeat customer.

Freight Broker Niches

There are many ways to zero in on your market niche and find customers. Here are some techniques that old-timers use in finding their captive market and growing their business:

Focusing on regional niches. Find customers in your immediate vicinity, whether it’s in your city or state. Your particular location may be a manufacturing beehive for cars, microchips, semiconductors, and other goods.Working with shippers who ship your favorite things. If you’re passionate about cars, you probably know a lot about their makers and can easily gain access to a contact person who can connect you to the decision-makers. Make sure you can grow with these customers and not spread yourself thinly—your enthusiasm must match your capability so you don’t destroy your reputation when you can’t handle loads satisfactorily.Servicing niches according to type of trucks used. Dry vans, flatbeds, tankers, dump trailers and everything else in between. You can choose to focus on using one or two types of trucks so you’ll be able to find shippers much more quickly.Brokering cargo that needs specialized handling. When you focus on a particular type of load, say dairy, you can quickly handle truck type to use, climate requirements, shipper preferences and the like.

When serving a particular niche, you become an expert on it over time. Before you know it, you become the go-to guy in your space for certain types of cargo. Once you’ve established a reputation for solid dependability, you can bet broadening your market or your reach becomes much easier.

There’s one danger in niche marketing though—you can become so focused that your total revenue could end up coming from a few sources. Learn from the niche haulers of the trucking industry. Less than 25%-30% of their revenues come from a single source; they keep it diversified even within the niche. With the vagaries of the economy, putting your eggs in one basket can spell disaster when something bad happens…a reality that even large freight broker companies are not immune to.

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Why are we here? - Freight Broker Training Headquarters

A question that comes across our desk from time to time, is why did you decide to start this site? It’s simple, really.

This site is built to be a resource for those who are trying to make their way through life and start a life of independence. All you have to do is turn on the news and it’s all economic doom and gloom all the time.

But we’re of the opinion that there is plenty of opportunity for people who are resourceful enough to roll up their sleeves, do the hard work, and make things happen. This site just happens to focus on the people in that group that are interested in working in the transportation industry.

Freight brokers are hard-working people and there is good money to be made as a broker. We’ve seen it ourselves from our experience in transportation – hard work is rewarded by the people who know their stuff, and are willing to dig in and make things happen.

As we get this site moving and growing, we’re covering a lot of basics. But we can already see there is so much opportunity for growing and covering other areas of logistics and brokerage.

We want to introduce those who have no experience in the industry to what it’s really like. We want to show them what’s involved in finding work, becoming a broker agent, becoming a broker, starting your own brokerage, what’s the life of a broker like, etc.

We don’t have the answers, but what we do have is a desire to produce outstanding, relevant and easy-to-use information that will help aspiring brokers on the way. We are dedicated to top-notch research, finding answers to the questions you have.

Do you have a subject that you would like for us to cover? Just let us know in the comments below.

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10 Top Reasons Why You Should Become a Freight Broker Today

The job outlook for a freight broker these days is exciting. It’s the fastest growing occupational category in the transportation industry, the highest at 29% compared to all other occupations.

With an improving economy and the increasing preference for online shopping, freight brokers are ever in demand.

If you’re still sitting on the fence about freight broker training or shifting careers, here are the top 10 reasons why you should become a freight broker today.

When you’re a freight broker, you call the shots. You can choose to start as a one-man operation or, as you grow, you can employ one or two employees to help you keep track of everything. Either way, there’s no boss breathing down your neck while you’re on the telephone speaking with a customer. You make the decisions, not somebody else.

If you’re a truck driver, being on the road 6 days out of a week can get old, fast. Sure you get to see different places but you don’t really have time to see the sights. All you’re concerned about is getting from point A to point B in the shortest possible time or you lose paying customers.

As a freight broker, you set your own working time so you’ll have more hours spent teaching junior how to catch a football, having weekly date nights with your significant other, or even going on honest-to-goodness sightseeing trips.

You probably know the freight industry better than the palm of your own hand. More importantly, you have an industry network that’s worth hundreds of thousands of dollars. Take advantage of this database of shippers and carriers. Add a freight broker service to streamline your trucking operations, improve customer service, and keep the commissions to grow your business rather than letting other freight brokers cut into your revenues.

It’s the ultimate fantasy of those earning for a living: working from the comforts of your own home. Lunch is served hot and enjoyed for an hour, not on the run. And there’s only a one-minute walk to the fridge for some mid-afternoon energy boost. No time wasted getting stuck in an hour-long, traffic-riddled commute. Plus, you can sleep in on some days. What’s not to like?

Provided you have a good credit standing, you’ll need less than $3,500 to get started on your freight broker career–from freight broker training and licensing to setting up shop. Some of the freight brokers we’ve known began their lucrative careers with the dining table doubling as their work space. You have the flexibility of starting bare bones or dressing up your work area however you see fit. You’re the boss, it’s your call.

If you’re a one-man operation and you work from home, you’ll often find yourself saving dollars on overhead. Your time will be spent mostly on the phone–negotiating with shippers and carriers, researching and tracking shipments.

This is a booming industry and the only limit to your income is your commitment to success. There’s plenty of business to go around, especially with ecommerce flourishing. Shippers are sending out goods from warehouses and distribution centers more and more and this can only mean one thing for you: more opportunities to earn.

The more your freight brokerage business is growing, the more you’re shoring up your smarts in the industry. And the more you’re building up your leadership, the more you’re acquiring new industry contacts who work anywhere from Seattle to Yonkers. Your universe as a freight broker is expanding exponentially…and so is your income.

Once you’ve achieved success as a freight broker, there’s nowhere to go but up–including a robust business where the rest of the family can get involved. Your children can start learning the ropes; you can begin employing people you trust; and your business can end up becoming one of the valuable businesses in your state! The possibilities are endless.

A viable family-run freight brokerage company is a valuable asset that can take care of your family for generations–whether they continue to run it or sell it at top dollar. It’s a positive win on all sides.

Clearly, the future for you is bright. Become a freight broker today!

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