Forrest Rhodes - The Freight Broker Book: A 21st Century Training Guide to Running a Successful Freight Brokerage Business Startup From Scratch

The Freight Broker Book

A 21st Century Training Guide to Running a Successful Freight Brokerage Business Startup From Scratch

By

Forrest Rhodes

Copyright 2021 Forrest Rhodes

All rights reserved

No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in reviews and certain other non-commercial uses permitted by copyright law.

Disclaimer

This publication is designed to provide competent and reliable information regarding the subject matter covered. However, the views expressed in this publication are those of the author alone, and should not be taken as expert instruction or professional advice. The reader is responsible for his or her own actions.

The author hereby disclaims any responsibility or liability whatsoever that is incurred from the use or application of the contents of this publication by the purchaser or reader. The purchaser or reader is hereby responsible for his or her own actions.

Introduction

T he freight brokerage industry is a thriving industry, but you can soar amidst unrelenting competitors if you have the right skill, knowledge, and experience. Freight brokerage takes a long process and involves multi personnel to get goods transported from one place to the other. At the top of the list is a freight broker.

A freight broker facilitates the process and connects everyone involved in the process of goods transportation. In the pages of this book, we have explained who a freight broker is his job description and traits. If you intend to be a freight broker or you are already one, this book will lead you through all the twists and turns in the career path. It gives you a rundown of what you should expect and be prepared for.

In this book, you will find all that you need.

I welcome you to dive in!

Chapter 1

Basics of The Freight Brokerage Industry

Who Is a Freight Broker?

B asically, a freight broker can be an individual or a company that helps a shipper and motor carrier achieve their goals.

How?

They find a shipper that needs transport to disperse goods and merge him with a registered motor carrier that wants to render the service.

They are what you'll call transportation intermediary, which simply means they are not an asset-owning carrier or a shipper, but only serve as a middle man in the movement of cargo. Freight Brokers ate indispensable because they provide an important service to shippers and carriers. They assist carriers by filling the trucks and earning a certain commission for their services. They assist shippers in finding genuine motor carriers, that they (the shippers) might have no clue about how to locate.

The Players

It takes a committed and vibrant team for an industry to thrive. It happens that some of the duties of the teammates might overlap. Nevertheless, no one is irrelevant in the industry.

The following key players and their responsibilities are listed below.

Shipper: An individual or company that has goods and wants to transport them.

Freight Broker: A personnel or company that serves as a middle man and connects shippers and carriers.

Freight Forwarder: Majority mix them up with freight brokers. They are remarkably different. They receive goods and consolidate several smaller shipments into one big shipment. Then, they make arrangements to transport the larger shipment using several shipping methods- water, air and land carriers.

Shipper's associations: They are nonprofit organizations that are made up of shippers with the aim to decrease transportation costs by pooling shipments. Their operations are similar to freight forwarders. However, their service is exclusive to their members alone and not for the public.

Agricultural Truck Broker: They are somewhat small and operate in an area in the country. They provide motor carrier service for agricultural products.

Motor Carrier: This is a company that renders truck transportation services. They provide truck transportation. It can be private or hire. A private motor carrier provides truck transportation of its own cargo, while a hire motor carrier provides truck transportation of cargo that belongs to others.

Import-Export Broker: They are basically facilitators for importers and exporters. They interface with international carriers, government agencies and other entities that are equally involved in international freight transportation.

In a perfect world, of course, each entity in the industry would handle its traditional role and that's all. However, the transportation industry is changing so rapidly that once-distinctive lines are blurring. Also, it's quite common for a successful freight broker to create subsidiaries that provide other freight services.

History of Freight Brokering

W hen you visit a freight broker's office or company, the uninterrupted buzzing fax machine, continuous ringing of the telephone to engaged conversations can make you think that freight brokering has been existing for years. However, in freight training school, you will get to understand it is a current and modern update in the logistics world. The roots of freight brokering can be traced back to the history of the trucking industry in the U.S.