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How to Start a Freight Brokerage Business

Everything that you buy moves buy truck and most of the time it moves in several trucks, maybe a train and if imported then a ship too. Transportation industry is about 8% of our GDP and estimated at it about a 300,000,000 industry. This is great news for someone looking to start a business as a freight broker because there is plenty of room to grow and plenty of rom to jump in and start making money.

What is a freight broker? A Freight broker is a 3rd Party Logistic provider which means they move shipments for shippers. Freight Brokers have a specific knowledge of how to ship products and use this knowledge to manage shipments for customers.

As stated by the TIA website - - "3PLs (Freight Brokers) allow shippers to access a single point of contact to select and qualify hundreds of carriers, manage cargo claims, leverage significant investment in software technology and provide mode, lane and carrier selection expertise. 3PLs provide carriers with access to shippers of all sizes and in geographic areas. 3PLs help carriers with cash flow by expediting payments.

Over the past decade, many shippers of cargo have streamlined their acquisition and distribution operations. They have reduced their in-house transportation departments, and have chosen to deal with only a few “core carriers” directly. Increasingly, they have contracted out the function of arranging transportation to intermediaries or third party experts. Every Fortune 100 company now has at least one 3PL as one of its core carriers. Since the intermediary or 3PL, in turn, may have relationships with hundreds, or even thousands, of underlying carriers, the shipper has many service options available to it from a single source. A 3PL may use more than a hundred carriers to serve a single shipper. In 2007, 3PLs directed the purchase of $162 billion in transportation services. "

The Transportation Intermediaries Association (TIA) is the professional organization of the $162 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials and international organizations. TIA is the United States member of the International Federation of Freight Forwarder Associations (FIATA).

Education And Experience

To begin as a freight broker you definitely need some education before jumping in. A freight broker training program is recommended and relevant work experience is also very helpful. Experience gained by either working for a broker as an agent, working as a truck driver or have experience shipping goods, will be a big benefit.

There are many schools and classes that teach Freight Broker training Just google it and you will see so many choices it is ridiculous. There are many benefits to both styles of learning and it really depends on your budget and time commitment. One product is a great tool for just about all shippers

What you can expect from Online Video Training program -

Learn your role as either broker or agent
How to reduce, and even eliminate, unnecessary startup costs
How to apply for your freight broker license
How to get your freight broker bond or trust
Learn what tools you need to effectively operate as a broker or agent
Learn the pro?s and con?s of factoring invoices
How to find and contact shippers
How to navigate business credit, both yours and your customers
How to find, negotiate and contract with carriers
Learn the difference between co-brokering and double brokering
How to properly dispatch and track your freight
How to quickly and cost effectively setup your home office
How to use loads boards effectively
How to easily and accurate understand rates in almost any lane
Learn successful selling and negotiating strategies & techniques
How to get involved in niche markets like automobile transport & dump trucks
How to start shipping for the Dept of Defense (DOD)
How to make money even more money by adding independent freight agents
Learn proven strategies that can propel you to into profit quickly

- Freight Broker Training - Learn A-Z Comprehensive & Affordable only $98

Narrow Down the Industry and Choose a Customer Type To Focus On
The transportation industry is so big and since everything in our country moves by a truck then it is overwhelming to start. Most will suggest that you figure out a smaller part of the industry and start there. You should pick something you are familiar with and have experience with. If you have past experience with transporting heavy equipment then you should start by target the type of companies that move heavy equipment. If you do not have any idea where to start then find something you like. For example if you like fishing then start with all the fishing product manufactures and importers of fishing products. In the beginning you will need to talk to a lot of people so it really helps to find products that you are interested in to keep you motivated.

Startup Costs
The cost to get up and running are pretty low. the list below are your basic needs to get going.

DOT Authority / Other legal documents - 500.00
Surety Bond - 10,000.00 ,See Note 1
Phone - 35.00 Monthly, RecommendVonage for unlimited long distance
Online fax - 35.00 Monthly, recommendRapid Fax, See Note 2
Money to pay carriers - 25,000 monthly, depends on how much business you transact. See Note 3

Some notes:
1) Surety bond can be set up with many companies for a small down payment of 500 and then a 250 monthly payment. One company is
2) Fax machines. If you are using online fax service then all your faxes can be routed to your email and you can upload almost any document. If you utilize a online fax service and a scanner you can eliminate most of the paper in your office
3) You will need some money to pay carriers before you may get paid from customers. One way to overcome this barrier is to start with a factoring company. A factoring company will invoice your customers and pay your carriers. They charge quite a bit, between 1 and 3% but as soon as you have your customers established and a healthy cash flow you will be able to get rid of this cost and move forward on your own. One company is Apex Capital