Freight Broker Industry Training Guide I am providing this free guide for those who have an interest in becoming a freight broker or commercial transport sales. Please reference my sites for more information.
SalesIndustry.net - Industry website selling goods
FreightBrokerJob.com - Freight Broker Job Listings
Chapter 1: The transportation industry and its internal
I will start this chapter by breaking industry. You must first cargo to be transported by someone somewhere. Whether it's a load of onions or a range of magazines, all he needs to go somewhere. Goods is not only defined as products that are delivered on a semi. It is also air cargo, freight containers, rail, and more. The cargo is being manufactured in the United States or abroad. It is then sent to the United States (or is already there) and must be delivered. In port or loading dock of a factory, it is loaded onto a piece of equipment. This new car might be a semi, or boat. All freight is handled by two or more parties. When the cargo load is made, it is for a given client. This could be a clothing line position to a retailer or a load of refrigerated foodstuffs destined for cold storage. Anyway, there is always a sender and a receiver or receiver. But sometimes, freight will increase by one third is a freight broker or freight.
A freight broker will act as an intermediary that will manage the booking of the trucking company or other mode of transportation for the shipper. The broker approach a sender asking them to help manage their wares. This takes some of the workload off of manufacturers shipping department. The sender and the broker to negotiate a rate for each load, and the broker, in turn uses a trucking company at a lower rate to deliver the shipment.
A forwarder is an agent similar, but handles more international shipments. They handle items such as cargo container ship, vessels from abroad, and the likes. An example of this would a broker to sell a boat to someone abroad. The yacht broker will contact a freight forwarder to quote a rate to ship the boat overseas.
There are also companies 3PL. They handle all aspects of transportation. They can handle everything from a broker and freight forwarder, and more. Warehousing, intermodal, rail, container, cold storage, and air cargo are all aspects of a 3PL will handle. They are generally very large companies with many divisions.
In certain circumstances, a broker and freight forwarder will work together. A broker can handle a load that must go abroad and seek the services of a freight forwarder. Now, we can not be said for a broker with a broker. This is called double brokering. It is frowned upon in the industry, but it still happens. Double brokering can cause serious problems of accountability that are not required to have responsibility on the shoulders of a broker.
Trucking companies are unlikely friendship with a broker for the simple reason that they feel a broker takes money out of pocket. In a sense they do. Although most trucking companies do not like brokers, they need it. Brokers handle such a large part of the cargo it is necessary for a broker to be used occasionally. Trucking companies have dispatchers and planners who are responsible for loading the cargo reservation for trucks. They generally use their own customers first, and use of freight negotiated as a last resort. From my experience of trucking companies, br haul too.
Posted on July 31, 2010.