Today we bring to you a detailed guide on Independent freight brokers! You might be looking into getting started as a freight broker. Could the reason be that you want to change occupations, or build your own career? Perhaps you just wish to understand more about the field. Well, we’ve got you covered. In this post, we will explain who an Independent Freight Broker is, what they do, and what the average salary of an Independent Freight Broker would be.
Put simply, a freight broker acts as the middleman between individuals or businesses who wish to ship their goods, and the carrier who would be willing to truck these goods to the customers. A freight broker studies and understands the market to get their work, helping businesses smoothly and efficiently handle the transportation aspect of their dealings.
To better understand what a well-established broker or a wanting-to-be broker can do to create work, let us dive into a day in the life of an Independent Freight Broker.
Who is an independent freight broker?
An Independent Freight broker starts the day off early in the morning by looking for and placing calls to a good number of shippers looking to ship their cargo on that day.
To get ahead of the competition, a good broker will quickly acquire the business of a shipper. The Broker will acquire basic necessary information regarding the type of cargo, the pickup and delivery location, the truck requirements, and so on.
Once the broker agrees to carry out the order, the shipper explains in great detail what they need from the broker. They also explain the customer’s needs and the approximate time in which the delivery should ideally be carried out.
This part of the ordeal is called Tendering. It is vital that the broker establishes a proper flow of communication between themselves and the shipper.
How an independent freight broker stays ahead in the race?
A good broker establishes good working relations with certain carriers. Mutual trust between the broker and carrier ensures proper cargo conditions and safe deliveries at fair prices. The broker, upon getting the load order, contacts his list of known carriers.
He lets them know their trucks are needed and if they would be available presently. If a trucker agrees, the broker negotiates a fair price. Taking into account a decent profit margin and the amount the shipper is willing to pay. Even on days when the broker cannot find a truck, he can use load boards online to get in touch with carriers willing to ship the load. It is a very viable alternative.
The Broker has to make sure that the carrier is properly authorized and insured, and carry out the agreement paperwork as well. The carrier signs and sends back the confirmation. The broker will let the carrier know the details of the cargo.
He/She will also keep in touch with the carrier, especially if it is a multi-day trip. The carrier will let the shipper know the status of the delivery from transit to arrival. Once the delivery has been carried out successfully, the broker’s job is done!
How much can a freight broker earn?
Independent freight Broker usually receives payment in the form of commissions.
There it is! Now you understand more of what a freight broker does on a daily. The first question that might come to mind is “How much does a freight broker earn?” The question is fairly relative.
Since brokers earn mostly on commission, each broker’s earnings vary. It is also different in each part of the world and different regions. The average salary of an Individual Freight Broker in India is upwards of 30000 INR per month.
Freight Brokers in the USA can make approximately 60000 USD excluding commissions. How much a broker can earn completely depends on experience, expertise, and dedication to their work. There is always a starting point for every budding broker.
It is our sincere hope that this information can be of help to someone looking to branch out, or just become informed! So what are you waiting for? Just connect with us to start your journey as an independent freight broker.