What is a freight broker and what does he do? It’s a middleman between the shippers and carriers. He facilitates the communication between them, makes sure the handoff goes smoothly and the freight arrives on time.
Those who ship freights with ELD providers, like to work with brokers, because they don’t have to lead the messy processes of negotiation with a carrier, plan routes and track freight. Carriers also prefer to work with the middlemen to optimize the route and minimize miles. In such a way they can boost their earnings in less time.
What does the freight broker do?
- they communicate with both carriers and shippers, resolve problems and make the deal;
- use their expertise to improve delivery times;
- prevent damage of the freight;
- increase your supply chain efficiency.
As a rule, brokers offer much lower rates because they combine freights from different shippers they work with. Thus, all parties of the deal remain satisfied: shippers, carriers and freight brokers.
When do you need a freight broker?
Most of the shippers do not have enough experience to determine if the carrier could perform the task. This is where freight brokers can be useful. Here are some reasons why it’s better to find a skilled broker:
- Consultation. The brokers can consult you every time you need, so it’s unnecessary to hire in-house employees to handle your shipping.
- Cost reduction is one of the most important reasons shippers hire freight brokers. Being experts, they can optimize your supply chain and slash your costs.
- Time. The freight broker can save your time, which is literally money in the world of shipping. If your freight isn’t delivered on time, you can have consequences in the form of fines and penalties.
- Capacity. If you need to process a huge scope of freight in a short time, a broker is able to handle it for you. It’s a great solution for any big business, especially seasonal.
A broker with these features will be the best partner in the delivery of your goods. It’s luck to find a person who can guarantee timely delivery of freight with no risk of damage.
How much does a freight broker earn?
The average salary of a freight broker in the USA is about $41000. This is a base salary without any commission. Location also plays a great role in establishing a broker’s salary. He or she can earn up to $75000 annually depending on adds-on such as commission or bonus. If he creates his own freight company, this number can increase a lot.
To be a freight broker isn’t such an easy task. Working in this field, you have to cooperate with truck drivers, operators, big and small fleets, shippers. This is another world with its own language and ways of solving problems. That can be learned by everyone, but in the beginning it will cost your time, efforts and readiness to work hard. But on the other hand, this profession is interesting enough, sociable and well paid.