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Freight Brokering

SlyGC59

Registered User
Hello Brothers

I am looking for light about Freight Brokering! I reside in Chicago & Started my business in November of 2010. Did a little freight brokering the first year but need to educated so I can be around for the next 500 years! If you have any insight please email me: 1SlyTransportCorp@gmail.com

Thank you for your time!!!

Bro. Sylvester Williams III


Garden City #59
 

Bro. D. Edward

Registered User
Hello brother,
I work in transportation on the trucking end and my wife works as a freight broker. We work in Ontario Canada but have some dealings in the Chicago area I would be more than happy to help you out if i can.
What specifically do you require help with?

Dave


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SlyGC59

Registered User
I need help with understanding the process. I have several trucks & have been told brokering is easy & a lot more profitable then driving. I have several leads to shippers 10k plus I just need to understand the ends & outs.


Garden City #59
 

Bro. D. Edward

Registered User
I am not sure i can tackle telling you everything you need to know, but i will do my best to give a general idea and where you can find more information.

I agree that brokering can be easy and profitable but that comes from not having as much overhead to get started compared to what you have now.
You need a good relationship with shippers and transport companies to get a brokerage off the ground. You might have already developed some relationships with shippers since you have a trucking business already started. A good idea would be to also have a website for your company. I personally dont deal with brokerages that i can not find information about on the web.

Basically what a freight broker does is find a shipper with some freight to move, and then match that freight lane with a transport company interested in moving it.

I have seen this done in a couple different methods. 1) the shipper has freight to move from point A to point B and they tell you they are paying $500 to move the freight. You would then find a transport company willing to move it for say $400 and pocket the extra $100 for your services. 2) The shipper has freight to move but does not have a set rate to move it - then you find a truck to move it and ask the trucking company how much they need to move the freight. If they say $400 then you would tack on approx. $100 more and tell the shipper you can move it for $500.

The best way i can think of to get started would be to schedule a meeting with a potential shipper and ask them for a list of lanes they run and ask them for the opportunity to quote those lanes.
Then find a few different trucking companies willing to quote those lanes. Take the lowest quotes you come up with, add a few extra dollars for yourself and then present those rates to the potential shipper. If your rates beat out what they are currently paying someone else to run those lanes you can be sure they will be interested in doing business with you.

An google search for " how to become a freight broker" and " load matching software" will help you find the tools you need to to locate the right trucking companies to quote the lanes you are searching.

As far as authorities and licensing go, you can find the info you need here http://www.ehow.com/how_7955987_obtain-freight-brokerage-license.html

I found writing this a little more difficult than i expected but it is an endeavor worth my efforts if has helped you in any small way. If you already own several trucks then you already have a grasp on the industry. I wish you the best of luck in your business and I'm sure you will do fine once you take the first step. If you stumble across any questions, i would be glad to help you out as best i can.

Fraternally,
Dave


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