Trade Schools With Freight Broker Programs
If you have excellent organization skills, strong networking and negotiation abilities, and a charming, professional personality, a freight broker career may be a perfect fit for you. Enrolling in a degree program at an accredited freight broker school can help you gain the skills and experience you need to qualify for a high-paying freight broker job.
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What is a Freight Broker?
Freight brokers, also known as cargo and freight agents, act as go-betweens for carrier and shipping companies. When a person or company purchases individual or bulk items, a freight broker’s work begins. Although freight broker is a versatile role, the primary responsibility of these professionals is to ensure that product shipments arrive at the appropriate destination safely and on time.
What Does a Freight Broker Do?
Coordinating the transport of multiple large shipments is a challenging task, so those working freight broker jobs have a sizable list of duties they must complete each day.
While specific job descriptions may vary by employer, most freight brokers:
- Gather information from clients to determine their shipping needs.
- Find potential carriers that provide the services the shipper is looking for.
- Get shipping quotes from carrier companies and relay them to the shipper.
- Maintain communication between shippers and carriers as they negotiate contracts, prices, and payments.
- Book carrier services through whichever company the shipper chooses and coordinate shipment pickup and drop-off times.
- Track carrier vehicles to ensure products arrive undamaged and on time.
- Informing clients about supply chain issues or accidents that affect delivery times.
- Keep accurate notes for personal and client records.
What Are the Requirements to be a Freight Broker?
Work Experience
Extensive experience and a thorough understanding of the freight shipping industry is essential for anyone wanting to pursue a freight broker career. Many people gain this knowledge through formal training at a trade school or community college. Former truck drivers, logistics managers, or dispatchers in the trucking and transportation field may also have the necessary experience for this role.
Industry Knowledge
A freight broker also needs knowledge of various truck lines, steamship lines, and airlines so they can arrange the fastest, most efficient transport routes for each shipment their client needs. As these professionals network and build relationships with different shippers and carriers, having information about convenient shipping routes can be a huge help.
Where Do They Work?
Some shipping companies prefer to handle finding carriers, negotiating contracts, and tracking shipments themselves. Because of this, some freight brokers find jobs with shipping companies that wish to manage this process in-house.
Once they gain enough experience and connections in the industry, many freight brokers decide to start their own businesses.
What Kind of Training do Freight Brokers Need?
Most of the training that goes into obtaining a freight broker degree covers the standard procedures and practices that ensure a smooth shipment transportation process. Courses typically teach students about different transportation options and the regulations they must follow to comply with state and federal laws.
Another important part of the freight broker training process involves learning about the various documents a broker needs while on the job. During freight broker school, students work with templates of several different forms and spreadsheets to develop the necessary record-keeping skills they’ll need for their freight broker careers.
These documents typically include the following:
- Shipper-Broker Agreements: Contract between the shipping company and the freight broker
- Broker-Carrier Agreements: Contract between the broker and the carrier company
- Load Tender and Confirmation Forms: Lists of shipment details that the carrier can use when planning delivery methods
- Rate Confirmation Documents: States that the carrier agrees to transport the shipper’s products for the negotiated rate
- Invoices and Bills of Landing: Receipts for the pickup and drop off of a shipment
- Certificates of Carrier Insurance: Ensures that the carrier company has the proper types and amounts of insurance coverage to legally transport the shipper’s goods
- Valid Proof of Cargo Insurance: Confirms that each load has at least a $100,000 coverage policy.
- Contract Labor Receipts: A bill requiring the shipper to pay contract laborers who help unload shipments upon delivery.
- Shipper Past-Due Letters: Document informing the shipper of missed or late payments for the freight broker’s services.
Those hoping to run their own freight broker companies may also study marketing and advertising to learn the best methods for drumming up business. International business, communication, and finance courses are beneficial as well. You may even want to take a few legal and accounting classes so you can operate your business independently for a while until you can afford to hire an accountant and lawyer.
How Long is Freight Broker School?
Freight broker school programs vary in length, depending on where you choose to earn your freight broker degree or certificate. Shorter diploma programs may take between 30 and 45 days to complete, while others may be six months to a year long. Some students choose to complete a four-year business degree to prepare for a freight broker career.
What Skills Should Freight Brokers Have?
In addition to a formal education and hands-on experience, a freight broker needs some basic skills to help them succeed in this role.
Attributes and abilities that can benefit a freight broker include:
- Excellent customer service and sales skills for communicating with clients
- Networking abilities to build connections with multiple shipping and carrier companies
- An understanding of how to read and create spreadsheets and use logistics and bookkeeping software to organize documents
- Analytical skills when matching shippers with carriers that offer the best services and rates
- Critical thinking skills for selecting transportation routes
- Problem-solving abilities for managing any issues that occur during shipping
Career Outlook
The United States Bureau of Labor Statistics predicts an almost 9% increase in the demand for cargo and freight agent jobs between 2021 and 2031. As such, qualified candidates may have an easy time finding a freight broker job with a shipping company over the next decade. Brokers running their own businesses might also be able to find more clients during this time frame.
Salary
How Much Does a Freight Broker Make?
Freight brokers earn an average salary of roughly $48,420 per year. As these professionals continue to build connections with various shippers and carriers, they can earn pay raises that boost their earnings closer to $59,380 per year.
An independent freight broker with their own company might make as much as $69,450 or more annually.
Is Being a Freight Broker Stressful?
A freight broker job can be stressful, especially when you’re new to the industry and struggling to find clients. Even more experienced agents deal with complex challenges, such as assisting with tough negotiations between shippers and carriers or handling shipment mix-ups, damages, and delays in an effort to keep deliveries on track.
Do You Need a License to Become a Freight Broker?
Again, all freight brokers in the United States must have an official license from the FMCSA. Brokers must submit a Unified Registration Systems form and pay a one-time $300 application fee to receive a USDOT number from the federal Department of Transportation. From there, you must purchase a Surety Bond of at least $75,000 for protection in case a client accuses you of unfair business practices.
How Does a Freight Broker Get Loads?
Freight brokers typically subscribe to load boards or use industry-specific search engines to find potential shipment opportunities. Once they find a load that they can cover, the freight broker makes a bid on the load.
If the poster prefers the broker’s terms, rates, and services over other bidders, the shipper that created the post will accept their bid.
Can a Freight Broker Work From Home?
Since freight brokers work around shipper and carrier schedules, they rarely have set work hours. Because of this, many freight brokers work from home. If you choose to be a remote freight broker, you’ll need a designated workspace that can accommodate your computer setup. You must also be available to take and make phone calls at any time in the case of a delivery or shipping issue.
What Other Career Options do Freight Brokers Have?
Freight brokers with the proper training and education can also work as dispatchers and logistics managers at shipping and carrier companies. Many of the skills freight brokers have can also qualify them for delivery driver, sales agent, and customer service roles in the trucking and transportation industry.