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Freight Broker Courses
What is a Freight Broker? 

A freight broker is an intermediary between someone who needs something shipped and the person who can transport the shipment. So in essence, a freight broker is the middleman between the shipper and a transportation company. Freight Brokers use their negotiation skills, access to carrier networks, load boards, and knowledge of the trucking industry to provide clients with maximum efficiency when shipping their cargo.

As we discuss in our freight broker training course, a freight broker connects someone who needs something shipped with a suitable transportation company to transport their cargo. For that, they earn also earn a commission. 

It's not uncommon for the terms 'Freight Brokers' and 'Freight Forwarders' to be used interchangeably, but they do, in fact, denote different roles within the freight industry. While both work with shippers and trucking companies, their responsibilities and operational scopes differ. As we already discussed, Licensed Freight Brokers essentially act as intermediaries, connecting shippers with carriers, negotiating freight rates, and arranging the movement of goods. They don't physically handle the freight but ensure that the transaction between the shipper and the carrier is efficient (managing shipping costs, ensuring delivery times are met and the entire shipping process is executed as planned). On the other hand, Freight Forwarders take a more hands-on approach. They not only coordinate the shipping process but also manage the storage and shipping of the goods, handle documentation, and provide a range of other services related to international exports and imports. 

To operate as a freight broker, you will have to obtain a freight broker license. To do so, you will have to go through an FMCSA (Federal Motor Carrier Safety Administration) application process and get a surety bond. Then, once your authority is approved, your MC number will get activated and you can begin operating as a freight broker. 

What is a freight broker?

Freight brokers help shippers save time and money by finding the right company to transport their cargo, tracking shipments and auditing paperwork.

Freight brokerages also help transportation companies by filling their available capacity (think empty trucks, containers etc.). Smaller transportation companies may not employ dispatchers or sales personnel to secure loads for their capacity and may need help with access to shippers and this is where freight brokers come in. 

Freight brokers not only provide shipping solutions but can also offer financial assistance to transportation companies by providing advances and offering “quick pay” options. A freight broker also helps transportation companies relocate their equipment to a better freight market or home base. This can be critical when a truck driver needs to get home. 

Successful freight brokers also employ (or hire as independent contractors) Freight Agents to increase productivity and improve brokerage growth. 

Import-Export Brokers constitute a specialized segment of freight brokers, specifically focusing on the intricate world of international shipping. These professionals liaise between businesses and international carriers, ensuring that global freight needs are met effectively and efficiently, especially when it comes to larger shipments. As an integral part of a freight broker company, Import-Export Brokers manage critical shipping operations, including the coordination with water carriers - large sea vessels designed for cargo transport. They bring their extensive knowledge of the shipping industry to navigate the complexities of international shipments, dealing with logistics, regulatory compliance, and customs procedures. By doing so, they streamline the process of transporting goods across borders, facilitating global commerce and enhancing the efficiency of the international supply chain.

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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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