Freight Broker Training-To Open A Freight Brokerage

To open a Freight Brokerage is not necessarily hard or real expensive but, it does require proper training and correct procedures. I seriously suggest you be a Freight Broker Agent for a year or two before opening a Brokerage. Why? Because you will need to know the exact same things an Agent knows, and more. But if you don’t want to go that route, you can put everything in place and then hire someone who is reputable and well experienced to run the Freight Brokerage for you. Yet it would still be a wise decision to at least have the proper operations training. That way you will have a pretty good idea of what will be taking place. You wouldn’t want to put your money and your reputation out there and then trust it entirely to someone else would you? I know I wouldn’t. And of course you can always hire a Logistics Consultant to help out when needed. But before you decide what you want to do, consider the following information:

FOR A BROKERAGE: you will need to have in place before you open your door for business: your License, UCR, BOC3, BMC84 or BMC85, a good working order knowledge, and although not required, I recommend that you carry what is called Contingent Cargo Insurance. You will also need to consider your finances. Do you have enough cash for, or a good enough credit standing for your $10,000.00 Bond? Will your cash flow allow you to pay your Carriers in a timely manner (usually within 21 days) or will you need the services of a Factoring Company? Do you plan to have any Agents, either In-house or Outside, or will you be doing it all yourself? Do you know how to use the Freight Broker tools you will need such as load boards and dispatch software?

FOR THE FREIGHT BROKERAGE AND THE AGENT: you will need to know how to build your Customer Base, where to find Carriers, how to check out both the Shippers and the Carriers. The different rates you will use and how to negotiate them. Where your pay structure comes in, contracts, legal aspects, and special equipment. What paper work and records to keep and for how long. How to use the load boards, when, where and how to start your workday, etc.

This may all seem a bit much and a little confusing and it will be without the proper training and guidance. So, before you open a Freight Brokerage, get the straight facts.

Copyright 2008 Sharon D Martin

content writer/co-author for

a1freighttraining