Truck brokering is an integral part of freight-hauling you can explore today.

To explain this in a single sentence involves negotiations between trucking companies and other freight haulage services. The aim here is to maximize dump and box truck profitability.

A truck broker is also known as a freight broker.

This practice has been around for a long time and has become a vital part of the freight services industry. It has resulted in the birth of significant truck brokerage businesses.

Some big names include Yusen Logistics, J.B. Hunt Integrated Logistics, Worldwide Express, Mode Transportation, and Landstar System.

Others include Coyote Logistics, Swift Transportation, Schneider Transportation, Werner Enterprises, and Prime. It’s essential to fully understand what truck or freight brokering entails to help you focus on making a career.

What Does Truck Brokering Entail?

As a truck or freight broker, you are responsible for assisting or connecting shippers with freight to qualified carriers or trucks to haul goods to their destinations.

Being a freight broker is an essential responsibility without which the shipping industry will be unable to function smoothly.

Not only do freight brokers connect shippers to available carriers, but they also track the load being hauled until it reaches its final destination.

This lifts the burden off the shoulders of shippers as they (shippers) don’t have the time or experience to keep track of goods being hauled or trucked away.

Starting A Truck Brokerage Business

To become a freight broker, it is necessary to follow the steps required to commence your journey. A thorough understanding of the process is vital as qualification depends on it.

The following are steps to follow;

  • Gain Industry Experience

Industry experience is critical to achieving your goal of becoming a freight broker. As an industry player, you understand the complexities involved and how to overcome complex challenges.

Communication and people skills are the most critical skills you’ll get.

You’ll be dealing with lots of people as a freight broker. So, having experience is an integral part of starting this business.

  • Freight Broker Training

Training is highly essential to becoming a freight broker. This, coupled with experience, places you at an advantage.

Part of the training process involves using necessary tools such as books. One of the most important things to know is the top freight broker training schools.

Our reference list of some of the best schools includes online courses BrokerU, Freight Broker Bootcamp, Rapid Authority, Atex Freight Broker Training, Freight Broker Agent School, Taltoa Freight Broker Training, Freight Broker Trainer, and Logistics Academy, among others.

Becoming a fully qualified freight broker will take weeks to months. This includes hands-on training with reputable freight broker businesses.

Having prior experience is a significant advantage.

Setting Up a Truck Brokerage Company

To set up a freight brokerage business, you’ll need to establish the structures necessary for its smooth operation. There are lots of things to consider.

This section highlights some of the most vital things you should implement to commence smooth operations.

  • Choosing A Company Name

This is the identity of the business. In choosing a name, you’ll need to be careful not to pick up a name already in use.

One way to avoid this is by checking for name availability after selecting the one you consider appropriate. One place to perform such a check is the U.S. Patent and Trademark Office.

Before performing such a search, you should have at least three names.

This is necessary because there’s the likelihood of finding your most preferred name taken by existing businesses. A name search helps you avoid duplication.

There’s a database of all registered names available online with the U.S Patent and Trademark Office.

  • Write A Business Plan

A plan should guide your entire business operations.

Now, a freight brokerage business plan can be used in sourcing for funding or credit lines, besides serving as a blueprint and providing focus.

Using such a plan, you can set timelines for achieving specific growth objectives. It also clarifies your strategies for attaining success with your truck brokerage business.

  • Choosing Your Business Entity

What type of entity do you wish to choose for your business?

This is a crucial decision to make. Now, there are different types of legal entities. The most common include the sole proprietorship, limited liability company (LLC), partnerships, and corporations.

Each type of entity gives certain advantages. You’ll need to know all the advantages conferred by each type to benefit maximally.

  • Get Licensed

No shipment or freight carrier company will want to do business with an unlicensed broker. You’ll also be operating illegally without one.

The federal agency saddled with issuing licenses to freight brokers is the Federal Motor Carrier Safety Administration. This license is also referred to as the Motor Carrier Operating Authority.

  • Connecting With The Right Carriers

Finding suitable carriers, although quite challenging, can be the difference between a successful freight brokerage company and one struggling.

In other words, the success of your business will depend on finding suitable carriers.

Depending on your niche area, certain carriers will best fit your needs. Different shipment or cargo categories are best served using corresponding niche-specific carriers.

An effective way to connect with such a carrier is by searching shipment directories and inquiring from other freight brokers.

  • Obtain A Freight Broker Bond

The freight broker bond guarantees to follow all rules and regulations in brokerage.

This comes at $75,000. However, you won’t have to pay the entire bond amount. Instead, a percentage of it is required. The rate you pay will depend on your credit rating.

The higher your credit score, the lesser premium you’ll have to pay.

Truck brokering is a lucrative profession you can become part of. Lots of qualified brokers have established successful businesses following the steps outlined in this article.

You only need to ensure all the requirements are entirely in place.

Also, different states might have slightly different requirements or regulations. You’ll need to find out what applies in your state.