how do i become a freight broker

[ripp_jr]

sorry if this in wrong spot but i was wondering how to become a freight broker so i can broker my own loads for my trucks and do freight brokers call companys to get freight or do the companys call them thanks for the help

[DD60]

sorry if this in wrong spot but i was wondering how to become a freight broker so i can broker my own loads for my trucks and do freight brokers call companys to get freight or do the companys call them thanks for the help

You may want to look here.

http://loadtraining.com/

[GMAN]

In order to broker freight, you will need broker authority. To be approved, you will need to post a $10,000 bond. Authority costs $300. You don't need authority to book loads for your own trucks, only those loads which you broker to other carriers. You can go to the Federal website for all requirements and forms. You should be able to handle everything on line. This will not show you how to be a successful broker, only give you authority. There are some schools that are supposed to train you how to be a broker, but it would be easier if you went to work for another broker to learn first hand.

[LOAD IT]

Getting some training is a good idea. You can train yourself through hard knocks, but it could be costly. I have been a broker for 10 years now, I have only had 3 claims, 2 produce loads, 1 shifted dry load. Carriers insurance covered the dry load. I had to eat the 2 produce loads ( lettuce and cabbage). If you are already loading your trucks, brokering will be fairly easy once you get the ball rolling. It can be slow in the beginning especially if you just rely on calls from the load boards. Also, dont be a loadboard lurker posting behind the cheap ash shipper who posts on all the load boards for cheap then the broker posts the same load for $200 less and some poor trucker takes it because he can get an advance from the broker. Well.....maybe you should post behind the shipper. I prefer not to, but you will and should offer advances, that is another carrot to getting trucks. Go for it and Good Luck. I like brokers that also run trucks!!

[sidman82]

I drive and will have my broker authority soon. Scary thought :shock:
My wife will take over, she will be good at it. She is very well organized and has a backround in office management and shipping/receiving. She will broker some loads to me, and a few to outside carriers. Not looking to make a killing, just a couple extra dollars. I promise I will not post cheap crap. I just can't sleep at night if I do that. I will only take the most premium paying loads to offer. That way the guy taking the load is getting a decent rate. If I was a school tought broker I would be taught to suck the load dry and offer it for peanuts to make the most for my boss. Sorry, I won't do that. I'll make less money for myself and be happy about it. Which by the way will be more then some parent broker would care to pay me.

[merrick4]

you will and should offer advances, that is another carrot to getting trucks.

You know a lot has been written about hauling cheap, excessive supply of trucks etc but it seems to me if this is true (which I don't know enough to deny yet) then brokers would just be sitting back and collecting. But from my conversations with brokers, few as they have been, they seem as eager to get trucks as the trucks are to get work. I don't understand this.

[LOAD IT]

you will and should offer advances, that is another carrot to getting trucks.

You know a lot has been written about hauling cheap, excessive supply of trucks etc but it seems to me if this is true (which I don't know enough to deny yet) then brokers would just be sitting back and collecting. But from my conversations with brokers, few as they have been, they seem as eager to get trucks as the trucks are to get work. I don't understand this.

A driver (myself included at one point in life) would load for a broker that offered an advance over one that didnt. If you see 7 brokers hustling the same load which one has the advantage of getting your truck if they all have good credit and the rates are very close to the same? The one offering the most money for the smallest fee. Some brokers dont offer advances for many reasons, some wont advance if they havent done business with you before. Some are strapped for cash and cant afford to advance. A buddy took a broker load from WA to OH about 3 months ago and they sent the advance through Western Union (that had to be costly). Then they wouldnt honor the quick pay after receiving clean bills unless he picked up another load for them. He picked it up then took it back to the shipper the next day only to find out the load was TRIPLE brokered. Not a good situation for our industry. When I look at my records, not of my advances are on loads of 1000 miles or more. Some O/Os believe that getting the advance is better than hauling for free..ie not getting paid. On that note, I say you shouldnt be loading for a broker that you feel may not pay. However, Ive had truckers load, get the advance and then start threatening this or that. I just remain cool and let the cross state lines then I threaten an interstate crime which is a felony. The load always gets delivered and the trucker always gets paid. I wont use him again though.

[solo379]

they seem as eager to get trucks

Of course they do! If they wouldn't getting trucks, they would loose their shippers.
The smart one's paying reasonable rates, and trying to establish a good relationship with good reliable truckers. This is a good business, where everybody is happy, and those guys in here for a long run!

But the same as in trucking end, the market is overloaded with cheap azz non professionals, who want it all, and now! They wouldn't be in this business for long, but there is plenty more, were they came from! It's like a plague! :sad:

[LOAD IT]

[but there is plenty more, were they came from! It's like a plague! :sad:

So true, it seems like every week there is a new broker calling with GREEEAT loads, they dont know that crap has been around for years, but they are so green, they think the shipper just started using brokers when they called the shipper. HAHAHA!

[GMAN]

I have a young broker call not long ago, all excited telling me he had this great paying load for me. From his voice I could tell that he was young. I asked him what he was trying to move the load for and he said something like $1.20/mile. This was a load coming out of Georgia, as I recall. I about blew his mind when I told him what we have been getting for our trucks. These new people need to do some research to find what the market is paying. Of course, he might have found a new carrier who would haul his freight. I believe it was PT Barnum who said that "There is a sucker born every minute." A good broker is going to get good rates and keep his word. A good carrier will do what he has to to get the load picked up and delivered as agreed. I think that unless the broker can offer a load at a fair rate and still make a profit then he should not take the load.

[merrick4]

A driver (myself included at one point in life) would load for a broker that offered an advance over one that didnt. If you see 7 brokers hustling the same load which one has the advantage of getting your truck if they all have good credit and the rates are very close to the same? The one offering the most money for the smallest fee. Some brokers dont offer advances for many reasons, some wont advance if they havent done business with you before. Some are strapped for cash and cant afford to advance. A buddy took a broker load from WA to OH about 3 months ago and they sent the advance through Western Union (that had to be costly). Then they wouldnt honor the quick pay after receiving clean bills unless he picked up another load for them. He picked it up then took it back to the shipper the next day only to find out the load was TRIPLE brokered. Not a good situation for our industry. When I look at my records, not of my advances are on loads of 1000 miles or more. Some O/Os believe that getting the advance is better than hauling for free..ie not getting paid. On that note, I say you shouldnt be loading for a broker that you feel may not pay. However, Ive had truckers load, get the advance and then start threatening this or that. I just remain cool and let the cross state lines then I threaten an interstate crime which is a felony. The load always gets delivered and the trucker always gets paid. I wont use him again though.

Sorry to digress here a bit, but I never ask for advances. Maybe I'm doing something wrong here, but say I got a $1,000 advance, what am I going to do with that? I don't want to be walking around with that. Actually now that I think of it, GMAN mentioned I believe, that he uses that Flying J bank, so I guess if you can deposit it right in the bank that's one thing. Do most O/O take the advances?

[GMAN]

I don't take advances. I run on my own money. The main reason I could see for taking advances if you are under capitalized or question whether you will be paid. One reason many older owner operators or carriers used to take advances is to cover themselves in case the broker failed to pay them. If you check out a broker, that should not be a problem. I would prefer to factor the load than take advances. Most will probably charge a fee for any advances. I do have one broker with whom I do business who nearly always offers advances without a fee. I never take them. I prefer getting all of my money after the load is delivered. I take the bills to this broker and he writes me a check on the spot. He doesn't charge for paying quick, either. This is the way this business used to be. You do the job and you get your money, without any discounts.

[Sonny Pruitt]

not a crime to hold freight for ransome

[LOAD IT]

not a crime to hold freight for ransome

Not a crime, but it is a hassle. I did it once, it turned into a huge pissing match insurance companies were involved, police was involved, my trailer was tied up for over 30 days, it was just a mess. I will never do it again and dont recommend anyone else to do it. You may end up in the federal penetentiary. Take the loss and move on!! If you havent been there, you may not want to be, its not worth it.

[Sonny Pruitt]

http://www.tlcouncil.org/qa/qaarch.htm#_Toc458401650

theres some mention in the archives

even the police really don't want to get involved and will keep passing the buck as to who has jusidiction.

but in the end the broker usually winds up paying if he wants to keep his shipper.

[DD60]

What about holding the freight hostage and demanding a higher rate?

[Sonny Pruitt]

There are incidents like that all the time on the GL meaasage board.
The conventional wisdom is pay the trucker and save the account.
Newly registered brokers fall victim to this by scam artist carriers btw.

[jonboy]

sorry if this in wrong spot but i was wondering how to become a freight broker so i can broker my own loads for my trucks and do freight brokers call companys to get freight or do the companys call them thanks for the help

First you sell your soul to the devil, the "Father of all lies". :wink:

Actually, I'd lilke to do the same thing ripp, not to become one, but to know how to negotiate. I sometimes get the rate I asked for, but wonder how much money I left on the table

[Bandit102]

I never take advances. I factor 90% of my paper. But the main thing is, I always, always, always credit check a broker that I don't know well or that I haven't hauled for in a while. Brokers come and go just like carriers. One might have a 5,000 credit limit today and be a no buy next monday. In doing this, I have always been paid. Once in a great while, a broker will go 45 days, but not more than once or twice a year. I've not been burned yet, knock on wood.