Truck brokering maximizes the money made in freight hauling by allowing trucking companies to negotiate cargo hauling with other freight companies. Truck brokerage software makes this process easy. Any owner interested in expanding his or her business should learn a few things to start this lucrative addition to freight hauling.
What Does a Truck Broker Do?
A truck broker, also known as a freight broker, is the middle man. He’s in an agreement between a shipper who has goods to transport and a carrier who has the ability to move the load. While many shippers in the United States have direct contracts with trucking companies to transport their goods, using a freight broker can give shippers more flexibility. This can also help their shipments and help them save money. Truck brokers don’t have their own trucks and drivers. However, some owner-operators also choose to get their truck broker license. Instead, truck brokers arrange for reliable freight carriers within their network to service shipments.
Becoming a truck broker is a great opportunity to increase your revenue. Now is as good a time as any to get your truck broker license. Besides making a good salary, truck brokers are indispensable when it comes to transporting goods and cargo. And our trucking software makes it easier than ever to expand your business and negotiate shipments with other freight companies. If you are wondering how to become a truck broker or why adding truck brokering to your business is a good idea for you, contact our experts at Trucking Office today.
Why Become a Truck Broker?
So you get a call for a big load—great! The problem is, all of your trucks are already on the road with other loads. Thinking about all the revenue you could have gotten from that load? This is where truck brokering (or freight brokering) comes in. If you have a brokerage license from the FMCSA, you can sub that load out to another trucking company, and take a small commission. Typically, a trucking company can only negotiate their own freight, which gives them a two-part opportunity cost: the lost job itself, and the brokering fee they could have gathered for arranging alternate cargo delivery. So how do you get a brokerage license?
Requirements to be a truck broker
You don’t have to take an exam or background check to receive your freight brokerage authority, and there is no age limit. First, you’ll need to obtain a proof of insurance of $10,000, in the form of either a surety bond (obtained through an insurance company), or a trust fund.
Update: On October 1, 2013 the minimum requirement amount of the trust fund or surety bond increased from $10,000 to $75,000
When you have this insurance, you can fill out and send the Federal Motor Carrier Safety Administration’s OP-1 Application for Motor Property Carrier and Broker Authority, along with a $300 (non-refundable) application fee. You should also fill out the BOC-3 form, which designates your process agent, or legal representative.
After submitting your application, wait for the FMCSA to issue you an MC, or motor carrier number. This number will allow you to start brokering loads. It’s especially easy to add a brokerage authority to your company if you already have a trucking authority.
What Truck Brokerage Software Does
TruckingOffice has recently released a new version of our software that caters specifically to truck brokerages. We eliminated some of the unnecessary functions, like maintenance records (since brokers are not in possession of a brokered load at any time). This truck brokerage software is streamlined to help you focus on the important parts. It will help you to keep your brokerage and regular trucking loads separated, especially in terms of financial records. This tool is geared towards organizing histories, both of loads and of customers, to allow you to access past information quickly. Same core product, different features—so it does exactly what you need it to.
Using truck brokering to increase revenue is just smart business. Our user-friendly truck brokerage software helps you to grow your business in an organized fashion.