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.

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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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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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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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