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Freight Broker Courses
What happens in a freight brokering transaction? 

Many of you wonder how a typical freight brokering transaction takes place. So today we are going to use this video from our course. It outlines what typically happens in a freight brokering transaction, step by step. It explains what happens in a typical transaction when freight is being brokered. Afterward, you will also learn some vocabulary related to the transaction. 

Below you will find a recap of the transportation vocabulary from our video. 

What is a truck dispatcher?

A truck dispatcher is a company or an individual working on behalf of a modern carrier to assist them with freight booking while maximizing the efficient use of their equipment. The dispatcher's job is to ensure that any truck under their management is used to the maximum capacity and generates as much revenue as possible. They achieve this by scouting load boards and other resources to secure transportation agreements with brokers at the highest possible rate. 

What is a load board? 

An internet load board is an information exchange for companies in the trucking industry. It is generally set up for shippers and brokers to post loads that need to be moved. Carriers, owner-operators and trucking companies search the load boards to find loads when looking for freight. The load board provides better efficiency for almost every type of company in the industry. Load boards also work in reverse, allowing the posting of available trucks that can be surged by freight brokers who have loads ready for transportation.

What is a broker-shipper agreement?

A broker-shipper agreement is also known as the shipper's packet. This is an agreement signed between a freight broker, a shipper and, in some cases, a receiver. It is a contract outlining the rights and responsibilities of each party. It is not mandatory that you sign such an agreement with your client, but it might be beneficial in case some unforeseen circumstances arise. 

What is a broker-carrier agreement?

A broker-carrier agreement is also known as the carrier’s packet. This agreement is signed between a freight broker and a motor carrier. It is a contract that outlines each party’s rights and responsibilities. Before a load can be booked, most brokers will require motor carriers to sign such an agreement. 

What is a Rate Confirmation? 

Once the broker-carrier agreement has been signed, the broker sends the carrier a document known as a rate confirmation. This document has the details of the shipment needing transport. The most important information contained within the rate confirmation is the pickup location and time, the delivery location and time, the weight, the commodity, and the rate to be paid for the transportation of the cargo.

What do BOL and POD mean?

BOL is short for bill of lading, also known as a freight bill. It is a legal document between the shipper of goods and the carrier detailing the type, quantity, and destination of the goods being carried. The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination. 

POD stands for proof of delivery. A POD is basically a copy of the freight bills signed by the consignee or the receiver. 

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Are you thinking about becoming a Freight Broker or a Freight Agent? LearnFreight offers Online Freight Brokering Training Courses which are suitable for people not familiar with transportation industry. Learn more about our training by visiting Training Details page or choose your course here.

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