The US transportation industry is a dynamic and highly competitive industry. To keep the bar, companies need to constantly improve their service. When it comes to locating cargo, transport companies have several options: loadboards, cargo brokers, and truck dispatchers.

A freight broker, also known as a Freight Broker, transport intermediary or transport broker, is a person who is charged with the duty of acting as an intermediary between shippers and carriers. The work involves negotiating more favorable shipping rates and faster delivery times with a transport company.

A freight broker works directly with shippers to negotiate a favorable rate with them. Having completed this task, he must agree on a tariff with the carrier and arrange for the transport company to accept the goods that will be sent to the appropriate destination.

It is the freight broker’s responsibility to ensure that the loading, delivery, billing and security of the cargo is in good order. Some freight brokers prefer to use shipping related documentation software, while others prefer to use the classic pen and paper methods.

For an effective brokerage service, you will need a telephone, fax machine, computer and other basic office equipment. The work of a US freight broker does not require a trip on a real truck; it’s office work done at your desk.

How does a freight broker make money?

A broker is an intermediary who earns his commission on each transaction. Brokers make a profit by negotiating a commission (rate) with shippers (shippers) and negotiating another commission with truck owners (owner-operators). The difference between these 2 commissions is the broker’s profit.⠀

For example, X Shipper has a shipment and contacts Y Broker to find a carrier for it. X Shipper and Y Broker negotiate a deal for $2,000. Y Broker then contacts ABC Trucking about the shipment. Y Broker is not required to disclose to ABC Trucking the amount originally agreed upon. As a result, ABC Trucking agrees to transport the cargo for $1600. Y Broker earns $400 in commission.

What is the difference between a dispatcher and a broker?

If the dispatcher earns from a percentage for the delivered cargo, then the broker from the difference between the price of Shipper (Sender) and Carrier (Carrier). Negotiations between the dispatcher and the broker deserve special attention. This topic and other important issues are covered in detail in our USA Controller Training.

What is the average Freight Broker salary or income?

The average freight broker salary in the US is $62,105 per year, with an average additional commission compensation of $28,000 per year.

Many factors affect a broker’s salary, especially location. Some companies choose to pay commissions to their brokers based on their performance, while others choose to pay them a fixed salary.

Freight brokers who run their own business have higher earning potential compared to their fellow employees. A self-employed freight broker can earn an annual income in the six-figure range (over $100,000 USD).