Freight brokers act as intermediaries by arranging for the transportation of cargo between shippers and motor carriers. The freight broker then receives a commission for his or her matchmaking skill. Freight brokers are also known as truck brokers, transportation brokers, property brokers and 3rd party intermediaries.

While the business concept in freight brokering is very simple, there are many details and procedures that need to be mastered. The broker needs to know what to do, when to do it, how to do it, why it’s being done and with whom to do it. Since this is a service-oriented business, it only makes sense to learn the multitude of demands and requirements. Especially in light of the fast-paced environment that becomes more and more common.

While actual “on the job” experience is the best teacher, formal training by qualified individuals helps pull everything into perspective for the beginning broker. As a result, the new broker strikes out on a note of confidence.

Having said this, let’s take a look at a typical day in the life of a freight broker.

After the freight broker has placed many prospecting phone calls and contacted as many current potential shippers as possible, he or she should have perhaps 20, 30, 40 or more shippers in their database. The initial information that each broker will collect will be general in nature: what type of cargo is the shipper shipping, where are the normal pick up and deliver points, what kind of truck is required and so on.

1. With this information on hand, the broker will want to start asking for the order by placing phone calls to shippers early in the morning – perhaps from 7:30 a.m. to 10:30 a.m. This is when most shippers are putting the final touches on their needs. Basically, the broker is asking if the shipper is looking for any trucks on that particular day.

If the answer is “No”, the broker goes on to the next and the next. At some point, the broker hits a “hot” one (or several) and that’s when the action begins.

After the broker has “proved” him or herself, the shipper will actually initiate calls to the broker instead of the broker always calling the shipper. And the shipper may want to work more proactively by looking for trucks 3-5 days out instead of just on a day-by-day basis.

2. The next step is to take the order from the shipper. The shipper will go into detail on what is required. Any uncertainties that the broker has should be cleared up immediately. It’s imperative that the broker communicates the correct information to each caller when they start calling in.

3. Then the broker will either work up an estimate of what rate is needed and they’ll get back with the shipper; or the broker will ask the shipper what they want to pay. After some calculations the freight broker will come up with an amount that they will offer to the truck. The ideal starting point is to get at least a 10% profit margin on each load.

4. The next step is to post these loads on the internet loading boards. There are numerous loading boards where loads are posted as well as searches for trucks that may be done.

5. After these loads have been posted, the broker will then go to his or her database of available trucks. The broker will then call each carrier to see if they have a truck available. In the meanwhile, the broker may be receiving incoming calls from individuals who are responding to the posts on the loading boards.