Miles and Money Freight Broker Training!
Good morning everybody! Today, I want to welcome you to our comprehensive guide on low training brokering. As you know, brokering is all about miles and money, and the majority of the freight around us move via vans, flatbeds, and reefers. Our focus will be on these types of transportation, helping you gain the most information and insights into this industry.
Payment and Priorities
First, let’s talk about payments. Ideally, we want our shippers to pay within 21 days, and in turn, we should pay the trucks within 30 days. Now, what is most important to a shipper? The availability of a truck comes first, and the price comes second.
Back Haulers: The Bread and Butter
Back haulers are the bread and butter of the industry. Keep in mind, the carriers that quote you today might not be the ones that haul the freight. The primary purpose of posting a load is to collect as much market information from carriers as possible. Essentially, you want to find out how much they are willing to pay for part of that truck trailer.
Consider this: You’re looking for a load without many extras, just to get a base rate. You have three machines to transport.
- One machine is 10 feet long
- The other two machines are 17 feet long each
- One pick up, one drop off
- Driver does not touch or tarp the cargo
- Cargo weight: 20,000 lbs
- Base case rate: $1,300
Is this going to work for you? As you collect more information, you might find yourself zeroing in on a market rate of $1,500. As a broker, you’ll be living in the backhaul because out haulers generally won’t negotiate rates.
Process and Negotiation
For every order you get from your shipper, follow the same process for brokering. Remember that whoever makes a mistake pays in this business. In almost every load, there are three different levels of negotiation.
Now, for those who have trust and trained drivers, you’ll avoid many claims. For those with no experience, don’t worry! We’ll turn you into a voluntary claims resolver, so you won’t have to go to court very often.
Commitments and Contracts
Once you have all the information, you’ll have two commitments. First, is this a legally binding contract? Absolutely! Second, be aware that roughly two out of every ten loads you handle will involve a renegotiation.
To broker loads, you need to have a license. If you’re ready to get started today, simply go online and apply for your license this evening. There are numerous resources available to guide you through the process and help set you up for success in low training brokering.
Brokering is all about finding the right balance between miles and money. By focusing on the key aspects of this industry, such as payments, back haulers, processes, negotiation, and licensing, you’ll be well equipped to navigate through the world of load training brokering. Remember to always gather market information, hone your negotiation skills, and stay up-to-date on licensing requirements to see success in this field.