Freight Broker Agent - Is It a Right Career Option?A freight broker agent is responsible to perform the same duties as a freight broker does, but there is asignificant difference in both job profiles. If you are an agent, all your work is done under supervisionof a broker. It is the responsibility of the broker you work with to monitor your work and make sureyou follow the FMCSA guidelines defined for the freight shipping service.

All your transactions as a freight broker agent are ensured under the broker’s bond and BOC-3. So, ifyou want to begin your career as a broker agent in the logistics industry, you should start by finding agood, established, reputed broker whom you can work with.

A good broker pays all carriers for your transactions and gives you your contracted commissionamount in a fast and timely manner. Quick and timely payment is vital to succeed as a broker agent.

Some of the Most Common Traits of Freight Broker Agents

Communication & Negotiation Skills – In order to become a successful freight broker agent, youneed to develop good personal relationships with shippers, carriers and broker.

Market Credibility – If the 3PL or broker you work with has a good financial backbone andbusiness credibility, it is your role to win the trust of all parties and gain business.

Powerful Network – You consistently need to work with reliable carriers, truckers move yourcustomers’ loads. Successful freight broker agents have enough contacts in the industry.

Digging up the Process

The agent uses broker’s business credentials to build relationships with carriers and shippers.Whenever a truck freight shipping assignment is received, the agent immediately finds the ideal carriersource to ship the goods to the defined destination. Once the shipment is delivered in its place, thecarrier sends invoice to the broker.

Meanwhile, the broker also sends an invoice to the shipper. Once he receives payment within 30 days,he clears the bill of carrier. Some brokers make the carrier’s payment straightaway when goods aredelivered. The agent then receives a decided percentage of the total amount as a commission from thebroker.

Average income of independent freight broker agents

Mainly, there are two types of agents, and the payment method differs for both.

Independent broker agent – They are given 50-60% of the gross profit made in per transaction.

Employee type broker agent – They are paid in basic pay+ commission format. And the total dependson the type, size of the company you work for and your position in the company.

The graphs below show the average salary of cargo and freight agent:

[Source: Payscale.com]

If you are new to the industry with no contacts and fund, it is strongly recommended that you browsethe market for freight shipping jobs with established 3PLs or logistics companies. Once you haveexperience and good contacts, your gain will automatically increase. Later, you can also start workingas an independent freight broker. All the very best for your freight broker agent career!

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