The transportation and trucking industry has experienced rapid growth over the last few years. If you are considering a career in the trucking brokerage industry, there are several tips you can follow to help you become successful on your journey. You must remember that not all brokers experience the same degree of success in their profession.
Tips To Becoming a Successful Trucking Broker
To be a successful broker, there are several strategies you must follow with any logistics company. Read on to find out what they are.
Experience Is a Must
You must gain experience in the industry. This is one of the first steps you must take to build a successful career as a freight broker. Freight brokers connect shippers and carriers, ensuring that the loads are successfully transported and within budgets and deadlines.
Many freight brokers gain this experience by working as truck drivers or with a trucking company. Others have gained experience in logistics roles with large or small companies. This type of job training is an important part of understanding what it takes to become a successful freight broker.
It is also imperative that you understand the cost barriers involved in beginning a freight brokerage business. These cost barriers are typically low compared to other industries. However, there are also additional expenses that must be calculated prior to becoming a broker. Freight brokers are going to need to have a computer and a cell phone specifically for business purposes. In addition, they will need all the systems available to help them find loads and connect customers at the same time. These expenses can cost between several hundred to several thousands of dollars.
All freight brokers working in the U.S. are required to have a valid license that complies with federal rules and regulations. You will be charged a one-time fee for a freight broker license, which must be done before working with any customers. All freight brokers must also secure a bond or trust in addition to other business requirements. If any broker fails to follow through with these requirements, it may result in devastating consequences such as not being able to obtain a bond or license in the future.
Able To Differentiate Between a Trust and a Bond
One of the requirements to obtain a license as a freight broker is to have a bond or trust in the amount of $75,000. This is a requirement that provides brokers with protection for the customers in the event a business transaction does not follow federal guidelines. All claims against a broker’s business will be paid by either the bond or the trust, which can represent a significant cost to the broker. A freight broker bond is the most common choice since it is calculated as a percentage of the total bond requirement. Brokers typically pay way less for a bond than they do for a trust. This will require a broker to place the entire $75,000 into a trust account upfront.