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Questions to Ask Before Becoming a Freight Broker or Agent

Any search for up and coming home based business will almost certainly yield a number of result that include offers to learn about becoming a freight broker or agent. Freight brokers are the middle men handle the logistics of shipping between cargo companies and the businesses they haul goods for. While the freight broker business can be lucrative, international shipping is a complicated business. Before getting too far along in the certification process here are a few commonly asked questions about the international and domestic freight broker business.

  • What exactly does a freight broker do?
    Freight brokers are the middle men who connect a freight company with businesses who need cargo moved.

  • Why don't transportation companies just handle the logistics end themselves?
    Many large international companies do have dedicated logistics or trucking departments. But smaller businesses often get better rates from trucking companies when they use a broker who already has a relationship with the broker.

  • What's the difference between a freight broker and a freight broker agent?
    A freight broker is the person named on the paperwork that's filed with the Federal Motor Carriers Safety Administration as being legally responsible for the transaction. A freight broker agent works for another broker but has different legal responsibilities.

  • Does a Freight Broker need any special certification?
    There's no specific training program that's required for freight brokers, but there certain forms that must be filed with the Federal Government.

  • What is an OP-1 and BOC-3?
    An OP-1 form designates the person to whom legal papers would be served in case of a lawsuit. A BOC-3 establishes that the agent's business has been secured with a bond to cover liabilities.
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    STANDARD LISTINGS:   FREIGHT-BROKERS-AND-AGENTS IN/NEAR PENSACOLA
    Panama Express Logistics Inc Write review for this local business
    14806 Front Beach Rd, Panama City Beach, FL 32413
    (850) 708-1213  

    Freight brokers must be adequately insured and currently licensed in order to do business. To do this, they may need to take classes on what this job will entail and learn about the different resources they can use. Some logistics agents may not need as much training, since they have a transportation background and have learned what customers and companies need for a successful partnership. Since most freight brokers work as independent contractors, they will make money by commission. Many logistics agents may start this career on a part time basis in order to build their reputation and customers.

    Freight brokers can be hired by customers that have cargo loads they need to ship by air, land, or sea. They can also be hired by transportation companies that want to increase the amount of cargo their truckers are carriers for. Freight forwarding brokers will find the cheapest shipment rate for their customers by keeping into consideration what kind of container will need to be transported, the distance it is to go, and what time requirement the customer has.

    Once a broker has determined the shipping needs, they will shop around and speak with multiple truckers and transportation companies to see who can offer the best rates for their client. They will then give the customer this information and will let them make the deciding factor on which option to choose. Companies can hire a freight broker on a full time basis to deal with all their shipping needs. However, most agents are available for single jobs.




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