Role of Freight Brokers
The role of freight brokers in the logistics industry is to facilitate communication between the shipper and the carrier.
How Do Freight Brokers Make Money?
Freight brokers make their money in the margin between the amount they charge each shipper and what they pay the carrier for every shipment. Healthy freight brokers typically claim a net margin of 3-8% on each load.
Earnings and Commissions
On average, a truck broker can earn anywhere between $40,000 to $100,000 per year. Traditionally, freight brokers will make anywhere from 25% to 35% of each shipment.
Compensation and Payment
Freight brokers get paid within 30 days of the shipment being delivered. Brokers pay carriers by negotiating a percentage of the overall cost of the shipment.
Non-Payment Issues
If you’re not paid what you’re owed, there are several steps you can take, including contacting the broker and filing a complaint with the FMCSA.
Connecting with Clients
Trucker brokers use various methods like cold calling, online databases, and social media marketing campaigns to attract business from shippers.