Freight brokers help businesses that need to ship goods and find carriers to transport them to their respective destination. Though becoming a freight broker often requires experience, there are steps you can follow to start off your career with little or no experience.
Understanding how to become a freight broker with no experience can help you figure out – what to do to start your business. In this blog, we define what a freight broker is, describe how to become one without experience and list tips to help you get started with this career.
Table of Contents
What is a Freight Broker?
A freight broker is a party or an agent who helps cargo companies ship their cargo. Freight brokers usually pair a cargo company with transportation services, such as trucking and shipping companies that can pick up the cargo and carry it to its destination. The freight brokers never have cargo of their own, but they ensure a safe and efficient transfer from one company to another.
What does a Freight Broker do?
Coordinating and connecting cargo companies with shipping companies includes finding organizations best suitable for working together and establishing professional relationships between them. Some of the daily tasks that freight brokers perform include:
- Researching cargo and shipping companies
- Recognizing carriers that perform their jobs safely
- Interacting with both companies to establish shipping prices and schedules
- Tracking shipments to ensure they arrive on time
- Developing sales strategies
- Accomplishing and approving shipping paperwork
- Searching for new customers and maintaining relationships with the current ones
- Ensuring the entire shipments get loaded safely and efficiently
- Maintaining and updating files and receipts for customers
- Responding to customers questions, concerns and requests
Essential Skills for Freight Brokers
How to become a freight broker with no experience?
Becoming a freight broker generally requires gaining some experience in the shipping industry or in a similar role. However, there are steps you can follow to become one even if you have no experience.
When you decide to become a freight broker with no experience, consider the following steps:
| S. No | Category | Description |
| 1 | Learn about the industry | To become a freight broker, it’s extremely important to understand the industry. Performing internet research can help you learn some basics. You can also opt for some online courses that teach about the shipping industry in general and freight brokering specifically. Through these courses, you can gain handful of knowledge regarding: i) How the industry operates ii) How to find shippers and carriers iii) How to work with your clients iv) How to manage your business |
| 2 | Build a network | Since you’re starting off with no experience, building a network can help you meet and link up other professionals in the industry. By meeting others in freight brokering and shipping, you can naturally learn more about the industry and find potential career opportunities, like cargo companies that need a shipping partner. You have many options for building a network that typically involves: i) Finding local meet-up groups ii) Joining a professional firm iii) Communicating with industry professionals directly |
| 3 | Apply to freight broker firms | With proper knowledge and a network, you can start applying to freight broker companies to begin your career. By getting an entry level position, you can gain experience that can help you earn a promotion to become a freight broker. This experience can also help you learn more about your career and build skills useful for becoming a successful freight broker. But, this step is optional, since you can move directly into starting a business of your own. |
| 4 | Name and register your business | After you set a name for your business, it’s crucial to register it with a business licensing department. This is also an ideal time to register your company with the IRS to obtain a tax ID number. Registering your business helps in making your business official and legal. |
Additional tips on how to become a freight broker with no experience
i) Apply for business loan
To launch your business, you will be needing capital funds to pay for office equipment and other business costs, such as marketing. Business loans are available from banks and other money lending sources.
It’s always useful to do research for a loan that is appropriate for your business, for example, finding a loan with a low interest rate. If it’s your first loan, it’s also helpful to find a loan available to those with little or no credit history at all. As you’re just starting your business, you might also require finding one with a low annual revenue requirement.
ii) Find a partner
A business partner can help you in building your business when you first begin. Some business partners might already have clients they can bring to your business, so you already have customers to start off your desired operations.
It’s helpful to find a partner with experience in the industry so you can learn from them as you work together along the way.
iii) Create an online presence
In today’s time, it is extremely important to have an online presence. It can be done by creating a website, social media accounts and professional profiles – this will help customers find you.
It could also help you in finding contacts within the industry to build your network. With the help of your online presence, you can create advertising campaigns to build brand awareness for your business and help clients learn more about you.
iv) Invest in freight brokering software
Software can help you in tracking your performance and assist in accomplishing your tasks efficiently and accurately. It can help you communicate with your clients and manage your finances smoothly.
There are many freight brokering software available in the market, so consider searching for one that is both helpful and affordable.
How Much Does It Cost to Become a Freight Broker?
The cost to become a freight broker can be somewhere between $4,000 and $10,000 in most cases. You have insurance, bond, licensing, legal, marketing and other costs.
In addition, for some freight brokers, the startup cost may include hiring employees or outsourcing tasks as well.
Is Becoming a Freight Broker Worth It?
Do freight brokers make a lot of money? This is a key aspect for a person deciding whether or not to become a broker. Freight broker salary will differ from businesses to businesses. In recent times, the Bureau of
Labor Statistics reported that the average annual salary for cargo and freight agents was a little over $48,000. If you enjoy the work and are passionate in running a business properly, it can be well worth the investment.
Conclusion
So, are you ready to become a freight broker? As mentioned in the blog, you don’t need to have prior experience in the field – all you need is the right training, coaching, knowledge and feedback from experts.
With these tools, anyone can start their own journey of being a freight broker in this industry and make their dreams a reality. So don’t be intimidated by the thought of entering a new market or taking on a big project – grab this opportunity with faith and make it happen. Even you can be a successful freight broker in no time!
Tushar C
I'm a HR at OpenFR8 and a passionate blogger. Apart from my day job as HR, reading and writing books/blogs are two of my absolute favorite things to do. I like taking on new challenges and most importantly, I believe in bringing efficiency towards everything I do. I love expressing my thoughts and visions through the medium of words in the form of blogs or articles or books. Till this date, I've successfully published three short-novels on my own and will continue to do so.
