A career in trucking can be fulfilling, but it may not suit everyone’s circumstances. For truck drivers looking to remain in the field without driving, freight brokering could be a viable option.
Understanding the Role
Licensed freight brokers can be individuals or companies, many of whom operate from home, that facilitate connections between carriers and shippers for a fee. As reported by Transportation Training Solutions, a Texas-based training institution for freight brokerage, there are around 4,000 licensed transportation brokers in the U.S., with only half of them working full-time.
Transitioning from Driving
The trucking industry is experiencing growth, with billions of tons of cargo being transported daily. However, it can be a challenging sector, especially for independent owners or operators. With new regulations regarding hours of service, increasing congestion on roads, and rising toll costs, the challenges are mounting.
John Thomas, a former accountant and the founder of Atex Logistics—a freight-broker training program that offers on-phone coaching—notes that common reasons drivers leave the profession include injuries, family demands, burnout, and escalating operational costs. After conducting extensive research with truckers, brokers, and shippers, he observed that many drivers are struggling with high fuel prices and looking for alternatives like freight brokering to remain in the field.
Welcoming Veterans
One of Atex’s trainees, Kristine Polfer, operates a flatbed trucking business in Florida and plans to launch her own freight-brokerage service. Her experience in trucking has greatly enhanced her training process. Furthermore, connections to truckers—whether they are friends, family, or associates—can be advantageous as they may evolve into clients or partners; around half of Thomas’s trainees are former truck drivers.
Initial Investments and Challenges
Starting as a freight broker involves minimal initial investment and ongoing costs, as noted by Thomas: “A couple of phones, a fax machine, a computer, and filing cabinets are all you need to get started.” However, it is not an easy venture. It may take up to two years or more before one can achieve substantial earnings. According to Transportation Training Solutions, the essential initial expenses include obtaining broker’s authority for a fee of $300, acquiring a surety bond or trust fund which can range from $550 annually to a one-time fee of $10,000 based on credit history, and a $50 processing agent fee for legal notifications.
Necessary Training
Training for becoming a freight broker usually spans two months, although it can vary based on individual commitment levels. Thomas emphasizes, “I provide a 90-page manual and 21 handouts via email.” Once trained, brokers develop a business plan and begin reaching out to shippers that utilize freight brokers, often using platforms for matching shippers with truckers. Persistence is key; once loads are booked, the broker oversees the shipment to its destination, ensuring timely payment to the trucker within 21 days, which helps establish repeat business.
Profit Potential
According to Transportation Training Solutions, full-time brokers can expect annual profits ranging from $40,000 to $150,000. Typically, a load might bring in a profit of $1,400 for the trucker and $140 for the broker. Running five loads a week could equate to $700, while handling 25 loads could yield $3,500 weekly. Building a solid client base makes it smoother, allowing brokers to enjoy calls from regular shippers.
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