Freight Brokers Watching As Transportation Bill Receives Extension

Posted on March 29, 2012 by Broker Pro

All year long freight brokers and freight agents have been anxiously watching as the federal government attempts to reach an agreement about future transportation regulations and funding.  Today was no different as the industry braced for the possible end of funding for highway transportation and infrastructure projects all across the nation..

With only two days left to vote, the House of Representatives passed a stop-gap measure that will extend funding to numerous major transportation construction projects without directly passing the controversial Highway Transportation Bill, a convoluted bill posed as the solution to transportation and highway rules and funding issues.  Transportation agents are specifically watching this bill because it contains a provision affecting the bond limit all freight brokers will be required to have going forward.

With the expiration of the most recent extension of SAFETEA-LU (the previous bill regulating highway and transportation infrastructure projects) in sight, the government was working to create a permanent plan for transportation related projects.  Earlier this month the Senate made a big leap by passing the bi-partisan Highway Transportation Bill.  The Highway Transportation Bill is designed to keep transportation projects going for the next two years and provide funding of over $109 billion dollars during that period.  It also includes language that will increase the freight brokers bond from $10,000 to $100,000.  An increase that threatens over 17,000 freight brokerages across the country.

After passing in the Senate, the bill went before Congress to receive the confirmation vote.  The House had until March 31st to vote on the new bill or face the real possibility of federal funding running out for major projects nationwide.  With so much debate surrounding the many provisions of the bill, Congress was unable to come to an agreement.   As early as last week, the House Transportation & Infrastructure Committee Chairman John Mica (R-FL) reported the House would be proposing a 3 month extension, or stop-gap measure, that would continue funding for highway and infrastructure projects but not pass the extensive Highway Transportation Bill.

With only two days left before the deadline, the House put the stop-gap measure to vote.  Earlier today, the House voted 266-158 to pass the measure keeping state projects funding intact past Easter and through the coming 2 months.  The Senate signed off on a parallel bill by voice vote to move the bill to President Obama’s desk.  The President is expected to sign off on the extension early tomorrow morning.

The Highway Transportation Bill, a bill that contains a number of provisions that will affect the transportation industry, notably for freight brokers and freight agents the $100,000 broker bond, will continue to be scrutinized in the coming months.

With a new vote pending in the second quarter the bill will either becoming the new funding and infrastructure plan directing all freight brokerages to hold the new bond or be voted back down to Senate for revision and continued debate.

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Getting Candy Corn to Your Candy Bowl

Posted on October 28, 2010 by Broker Pro

Halloween officially marks the beginning of the holiday season. Consumers begin a three month spending spree on food and gifts, and retailers wait anxiously to bounce out of the red. Items fly off the shelves by the case load, forcing trucking companies to work overtime to ensure retailers have all the products they need to satisfy their customers. Especially their ‘sweet tooth’.

What symbol could be more representative of Halloween than Candy Corn? The little triangle-shaped, multi-colored, dried corn kernel replica candies that dominate Halloween candy aisles seem to be in everyone’s candy bowl. But the process of getting the candy corn from the manufacturer to the consumer is a fairly long one that requires punctual deliveries and complicated exchanges.

First, the candy begins, as any other edible good: in a large mixing bowl at the factory. Over recent years, robotics and advances in technology have drastically altered the look and feel of modern factories, replacing thousands of human laborers. Nowadays, many factories are almost completely automated, capable of producing huge amounts of product. In fact, it’s estimated that over 35 million pounds of candy corn, or 9 billion pieces, will be made this year.

Workers begin by mixing sugar, water, and corn syrup in large kettles, then add fondant (a sweet, creamy icing) and marshmallow for texture. A batch is made and poured into molds. Then a machine pokes a hole in each candy, inserting white, yellow, and orange food coloring. After cooling (approximately 24 hours), the molds are emptied and the candy falls into chutes where they are lightly covered with a glaze for shine.

The candy corn is weighed according to the company’s specifications then packaged and boxed for shipment. From here, the company will get in contact with a carrier capable of transporting their product to the retailer. It is also possible to work with a freight broker to facilitate the transportation process. A freight broker acts as a kind of liaison between the company doing the shipping and a carrier willing to carry the load. They work with the shipper to determine their needs, and then find a carrier from his or her list of contacts matching those qualities. A price is negotiated, of which the freight broker receives a percentage commission.

There are also many stores and online companies that will purchase product directly from the company to sell to the public in bulk or at wholesale prices. In this case, they will procure their own means of transporting the candy to the consumer, whether their own carrier service or by use of a freight broker.

The containers are loaded and the trucks carry the candy to the retailers, who either immediately replenish their shelves with fresh product or increase their own back room inventory for when the number of units on the floor begins to dwindle. Inventory systems such as Just-in-Time and FIFO (First In, First Out) automatically track, via computer, exactly how many units of the candy have been sold and will alert the purchasing manager when it’s time to buy the next shipment of inventory.

Happy Halloween. Are you an active freight broker?  For new opportunities to advance your career as a freight broker just click here for information.

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How Much Can A Freight Broker Make?

Posted on September 30, 2010 by Broker Pro

One of the most common questions I get from freight brokers is “How much can a freight broker make?” My answer is almost always the same, “It depends.”

Generally Freight Brokers can make very good money. I have seen many make hundreds of thousands a year, but I’ve also seen a few make next to nothing. The wonder of the profession is that there is no cap on what a person can make. You are only limited by the amount of business you can do. Therefore if a person is dedicated, hard working, and skilled in business and as a salesperson they can make much more money than many other professions could provide.

From my experience I would venture to guess that the average established Broker makes between $100,000 and $150,000 a year. That’s not bad for a profession requiring no college degree, certifications, or state exams. Among startup opportunities out there it is also one of the most affordable. A brokerage requires very few costs for startup.

So how does a freight broker make all this money? It’s pretty simple, really. When a company wishes to move a load of freight from one point to the other, he will pay for it to be moved. When a shipper uses a broker, he pays the broker to move the freight, only the broker does not actually move the freight, but rather possesses the contacts and resources to find the right person to do the job. The broker turns around and pays a carrier a lower price to move the freight than what the shipping company paid the broker. This difference is called a “spread” and is the broker’s margin or profit once operating expenses are paid for.

So if you charge a company $2,000 to move a load, and pay a carrier $1,850, you will retain a margin of $150. Each load will vary, but the current industry average spread per load is probably somewhere around this figure. Now is the most important factor that decides how much a broker makes. How many loads can you move per week? Most getting started out will move about 1-5 loads per week, once established you might move something like 5-10 or more loads each week. You will see that your annual income as a Freight Broker, then will vary directly by the number of loads you move.

For example, if a person moves an average of 5 loads per week at $150, it will amount to about $39,000 each year. If you move an average of 10 loads per week at the same margin, you’ll be making around $78,000 per year. It obviously would continue up from there.

One thing to keep in mind is that no one ever moved a load without knowing how to and being familiar with the transportation industry. If you hope to be successful as a freight broker you will need either experience in the transportation industry, an education in freight brokerage, or preferably both. A few excellent freight broker schools have been established to teach students exactly how to be successful.

Educate yourself on possibilities, learn how to broker freight if you do not already know how to, and get to work. It is an extremely rewarding and lucrative industry to get started in. Check out salary.com for more information on broker incomes.

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Freight Broker Training: Finding Freight

Posted on September 28, 2010 by Broker Pro

intermodal freightHere is a little freight broker training tip. We hope you find this information helpful.

As a freight agent or freight broker, moving loads is the most important aspect of your job. It is also the most challenging thing a broker needs to do, once freight is found and the job won, the rest is quite simple. Here are a few suggestions that might help you get started finding freight, or if already established, to help you find more or better paying freight.

Most established brokers do little cold calling unless they are really trying to grow the business. Those who have a considerable book of business get most of their loads from existing customers or as referrals from customers. This works great as long as you keep your customers happy, which include shippers and carriers. Providing superior service and really value added, instead of just taking money for being the middle man, is the way the most successful companies have gotten to where they are.

Many people utilize internet load boards to find carriers and loads to move. Many load boards now days are free, at least for some of their services. Load boards can be a threat to brokers, as they have the tendency to allow shippers and carriers to connect directly, without the need of a broker, but there are still many instances where a freight intermediary is preferred, especially if you can provide a valuable service.

Other, less obvious sources on the internet can also be useful. Use search engines to find lists of companies and contacts, whether by industry, geographical location, specific shipping need, etc. Often the niche and specialized corners of the industry will have less competition (where the transportation industry is already fiercely competitive) allowing you to specialize and pick up a lot of business.

Target smaller companies. Large companies will either have their own transportation department and possibly even their own trucks, or will already have an established relationship with a larger brokerage. You won’t stand a chance at getting those accounts, especially if you are just getting started and don’t have a considerable reputation and book of business.

Doing these things, as well as using your head, getting creative and trying to find those companies that may not be getting 40 calls a day. Most of all just work hard and be sure to make the customers you do land happy. If you do this, you will maximize your chances at success and your bottom line while you’re at it.

If your looking for freight broker training visit http://www.FreightBrokerageSchool.com today.

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Getting Started in Freight Brokerage – Setting Up Your Business

Posted on September 10, 2010 by Broker Pro

Before you go about filling out the forms and applications for your Broker Authority (Freight Broker License), you need to make sure you have a business entity set up and ready to go. This can be a rather daunting task, but can actually be quite simple if you take a little time to educate yourself and just get it done.

First of all you need to decide on a form of doing business. You have several different options here. Your choice should depend on where you see your company going in the next several years. What about 10 or 20 years down the road? Are you going into business alone? With a friend? Do you plan on expanding or hiring other freight agents? These questions, among other considerations, will help you decide how to go about starting your business.

A corporation is probably the most desirable of all forms of doing business, as it separates your assets (as an owner) from the assets of your company. This means if something goes terribly wrong and someone wants to sue your company, they can take money from the company, but in most cases cannot take any money or assets from you (your house or bank account, etc.). As a freight broker, dealing with large trucks and potentially very valuable cargo loads, this is very desirable for you. The drawbacks to incorporation for your company are somewhat more rigorous regulation and complicated tax law. It is also somewhat more difficult to become a corporation, as there are more steps and complicated application process. The time it will take is worth it. An alternative from a corporation is an S Corporation, which carries most of the same benefits as a Corporation, but is designed for smaller companies still in need of incorporated status.

Less desirable than a Corporation and S Corporation, but still relatively safe, is a Limited Liability Company (LLC). An LLC offers similar liability protection, where liability for the company does not generally extend to an owner’s personal assets; it is limited to assets in possession of the company. An LLC can be desirable especially for those not planning on sharing ownership of the company or expanding too much.

Sole Proprietorships and Partnerships should be avoided if possible, as these forms of doing business do not offer protection of personal assets. With these your house or anything else is fair game to satisfy company debts and legal liabilities. The one thing they do have going for them, is that they are relatively easy to set up. But setting up an LLC or Corporation is well the small additional effort required. If you do choose to set up a partnership, be sure to draft a thorough partnership agreement. Too many partnerships have gone sour because of unclear agreements and misunderstandings among partners. A clear legal agreement can go a long way to remedy this.

If you plan on using a business name other than your own name, you will need to check to make sure that that business name is not already taken. Once you are sure your desired DBA (Doing Business As) name is not taken, you can register it with the appropriate authorities.

This is intended as a general overview, not as a thorough or exhaustive guide. The information listed here may not be correct, as laws and regulations vary from state to state and county to county. Though most of this can be done without the aid of an attorney, it may be wise to consult with an attorney in your area.

If you or someone you know is interested in freight broker training there are many resources available at http:// www.inboundlogistics.com.

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Freight Broker Tips: Finding Loads

Posted on September 9, 2010 by Broker Pro

As a freight agent or freight broker, moving loads is the most important aspect of your job. It is also the most challenging thing a broker needs to do, once freight is found and the job won, the rest is quite simple. Here are a few suggestions that might help you get started finding freight, or if already established, to help you find more or better paying freight.

Most established brokers do little cold calling unless they are really trying to grow the business. Those who have a considerable book of business get most of their loads from existing customers or as referrals from customers. This works great as long as you keep your customers happy, which include shippers and carriers. Providing superior service and really value added, instead of just taking money for being the middle man, is the way the most successful companies have gotten to where they are.

Many people utilize internet load boards to find carriers and loads to move. Many load boards now days are free, at least for some of their services. Load boards can be a threat to brokers, as they have the tendency to allow shippers and carriers to connect directly, without the need of a broker, but there are still many instances where a freight intermediary is preferred, especially if you can provide a valuable service.

Other, less obvious sources on the internet can also be useful. Use search engines to find lists of companies and contacts, whether by industry, geographical location, specific shipping need, etc. Often the niche and specialized corners of the industry will have less competition (where the transportation industry is already fiercely competitive) allowing you to specialize and pick up a lot of business.

Target smaller companies. Large companies will either have their own transportation department and possibly even their own trucks, or will already have an established relationship with a larger freight brokerage. You won’t stand a chance at getting those accounts, especially if you are just getting started and don’t have a considerable reputation and book of business.

Doing these things, as well as using your head, getting creative and trying to find those companies that may not be getting 40 calls a day. Most of all just work hard and be sure to make the customers you do land happy. If you do this, you will maximize your chances at success and your bottom line while you’re at it.

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Freight Brokers and Loading Boards

Posted on August 13, 2010 by Broker Pro

FreightFreight Loading Boards can be a very valuable tool to the new freight broker and to any broker. Loading boards, essentially, are websites where freight classified ads can be posted. Here, companies will post loads that they need moved. Carriers will also post availability to move freight on the boards. Though there are multiple other functions that loading boards can fill, these are the two that brokers will be most concerned with.

A freight broker will use load boards to match a load needing to be shipped with a carrier looking for freight to move. A broker’s success lies in his ability to successfully match and organize loads between shippers and carriers.

Some load boards will even automatically post the listing you give them to dozens of other boards all over the internet. This can be very useful to increase exposure to your needs. Ideally, finding a board that can get you maximum exposure, while allowing you to post loads and search for trucks as well, will be the most useful. Carefully monitor the size, reach, and professional look of each load board, as some may have many more participants, and be much more reputable than others.

Other tools available on load boards that can be useful to brokers include the ability to check on creditworthiness and the reputation of potential clients and customers. If a shipping company has a history of not paying for the freight it has shipped, or paying slowly, you will know you’d be better off finding a different load to move, or at the minimum charging a high price to move their load in exchange for the added risk involved.

You can also sometimes check on the reputation and track record of the carriers that you consider using. If a carrier has a terrible safety record, you may want to find a carrier with a better reputation. A bad carrier can easily ruin your business as a broker, since they essentially do your work for you. If a carrier’s service is poor, it reflects directly onto you as a broker. This reputation can be difficult to change, especially when starting out, and working on building a name for yourself in the freight brokerage business .

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Need a New Job? Become a Freight Broker

Posted on July 30, 2010 by Broker Pro

The recent economic difficulties we have experienced in this country and around the world have put many people out of work. While millions are unemployed and thousands of businesses are losing money hand over fist, the transportation industry continues to provide constant and profitable business to those willing or able to take advantage of the situation.

When thousands of companies are going out of business, why work for someone else, when instead you could be working for yourself and making a 6-figure income? If unemployed, what do you have to lose? Freight brokers and freight agents often have the liberty of working from home, choosing their own hours whether full or part-time, and even working while traveling.

There is no formal training required to become a freight broker or agent, but training can be very helpful, especially if you do not already have a strong background in the transportation industry. Training can be expensive, but numerous government programs and other financial aid are available to reduce the cost or pay completely for training. Some of these benefits include the Workforce Investment Act and aid designed for military Veterans. Ask your chosen training program if they have experience or resources to provide financial aid.

Startup costs for agents and brokers are quite small. Agents will often have little to no costs, as they will work for a broker who will already have most requirements in place. An office or place to work, which will likely be your home, and a computer, fax, phone, and internet connection are all that are needed to start. Some of these may be provided by or paid for by your brokers.

If becoming a broke is your goal, there are a few additional costs that will be associated, including a license, insurance and a bond to secure the loads you are moving. A freight matching software may also be very helpful to ensure you and your agents are able to find and move the right freight with the right carriers.

Though many who seek to become an agent are very successful, many freight brokers and agents fail right out of the gate. The huge majority of failures occur because people are either poorly trained or do not put in the effort to get their business off the ground. Attending respectable freight brokerage schools can ensure that you are well-trained, leaving your success all up to the effort you put into it.

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Need a New Career? – Let Uncle Sam Help

Posted on July 20, 2010 by Broker Pro

The Workforce Investment Act (WIA) of 1998 allotted billions of dollars for helping to train millions of Americans for high-paying jobs. The act focuses primarily on those who are unemployed, but is also intended for many others who are struggling with low pay, or unsteady work. Under the act, State governments have been given large budgets to develop programs, and provide funding and resources necessary for people out of work to get back on their feet and make a good income.

The Workforce Reinvestment Act provides funding and other resources for individuals to seek out the training necessary to qualify for better jobs. Thousands have been placed into jobs in industries such as the trucking and transportation industry for example. Funding can be received to pay for training as a truck driver or a freight broker, where average annual income often exceeds $150,000.

Freight brokerage schools can provide quality training and education to arm you with the tools to be successful in the freight brokerage business. A number of reputable schools exist, and have had many students attend for free after Workforce Investment funds have sponsored their training. Many agents begin making 6-figure incomes soon after completion of their courses. Most agents and brokers work from home and choose their own hours, with the option to work as many or as few hours whenever they choose. Income is commissions based and depends on the number of clients one is able to attract and retain, as well as the rates that can be negotiated and agreed upon.

Graduates also have the option of starting their own brokerage, which is more demanding and involves more start up costs, but carries the benefits of being able to work for oneself and keeping all the profits made from a deal.

The WIA has helped millions of Americans over its years of existence, and continues to help many more with aid from Obama stimulus funds and other legislation. Check with your state’s employment or workforce services to see options and opportunities for jump-starting your career with government money.

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Good Phone Plans for Freight Brokers

Posted on July 13, 2010 by Broker Pro

The job of a freight broker or agent is done almost entirely over the phone and online. This is a major reason most brokers work from home. When a person’s entire business is dependent on their phone and internet service, it becomes very important that they find the right service plans and providers.

Depending on how hard and long a broker works, he or she can spend upwards of 8 hours per day on the phone, and just as long online. In addition the majority of phone conversations will be long distance. This combination can rack up a regular long distance phone bill very quickly. Therefore, choosing the wrong long distance plan would be a very expensive mistake.

A major consideration is finding a plan that offers unlimited long-distance calling at a reasonable flat rate, or a very affordable long distance rate. The former will likely be the best choice, as many phone service providers are offering cheaper and cheaper service plans as phone and internet networks become more developed.

Many phone and internet service providers offer reduced rates or discounts for bundling phone service and internet together with the same company. The other advantage to choosing this method is the simplicity of paying one bill for both internet and phone service, which can save time and reduce the pile of bills to be paid every month.  Remember, if using DSL or similar internet service, that uses a phone line for internet, that you will need a dedicated line for both internet and phone, as you will often be using both at the same time.

We will not provide specific prices or advantages to alternate phone plans and service providers here, but remember to shop around instead of going with the first plan you find. Landline phones are also often much cheaper than mobile service. New VOIP technology through online providers such as Skype can prove even cheaper. The use of such a service would require only an internet connection, and then a monthly fee charged by the web service providing the VOIP technology. Check out the alternatives and decide which option is best for you. Hopefully this will give you some good  incite for your Quest to becoming a Freight Broker.

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