Category Archives: Brokerage

Transportation Brokerage Software: What It Is, Why You Need It

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Whether you’re a truck broker or just interested in finding out more about the field, there are a few things you’ll need for long-term success.  You’ll have to have qualities like tact, determination, self-motivation, and a great work ethic.  Contacts with truckers and warehouse managers would be helpful as well.  And last but certainly not least, you should have transportation brokerage software.  Here’s why:

  1. There’s a great deal of math and recordkeeping that comes with being a transportation broker.  You’ll need to stay on top of whose truck went where and picked up what, how many miles it was hauled, and what the agreed-upon fee was.  You’ll have to know how much to pay both Uncle Sam and your drivers, and how much you’re left with after all is said and done.
  2. Staying on top of all these things is nearly impossible to do with a piece of paper and a pencil.  Pocket calculators can help, but make one tiny mistake and you can find yourself owing serious money to your clients or your drivers.  It doesn’t take a college degree to understand why that’s a terrible way to do business.
  3. Transportation brokerage software can make your life a million times easier.  With it, keeping everything straight is a simple matter of entering information in a few fields on a computer screen.  Anyone with basic typing skills can use the software, and it will enable you to not only work quicker, but also more smoothly and accurately than your competition.

Of course, not every type of transportation brokerage software is the same.  Here are some features you should demand from whichever package you ultimately decide on.

  1. It should be designed either by truckers or by professional truck brokers.  You see, there are plenty of great general-purpose business programs out there; Microsoft Office™ is perhaps the best known.  However, these packages don’t give transportation brokers the kinds of features and support they need.  So invest your money wisely; pick a brand that has specifically created tools for freight brokers like yourself.
  2. It should be available online.  That simply means that you don’t need a disk to install it on your computer.  This offers many advantages, including:
    1. Instant updates whenever the software company adds a new feature.  You simply log onto the Internet and enjoy all the advantages the improved software has to offer.  There’s no need to buy new disks and go through the complicated, time-consuming process of uploading them onto your machine.
    2. Software disks are fragile, and can easily be lost, stolen, or damaged.  So whenever possible, it’s better to simply have your programs stored on the Internet, where they’re safe and secure.
    3. Not only are the programs themselves safer on the Internet than when kept on disks, but your confidential business information is as well.  This offers you protection from the dangers of information theft or disaster, and the exposures to legal liabilities that such theft or loss can cause you.
  3. It should already be used and trusted by thousands of customers in the trucking and transportation brokerage businesses.  Why take a chance on a new product when you can have one that’s already proven itself to professionals who work in your field?

TruckingOffice Software: The Brand You Can Trust

We’re confident that our own product is quite simply the best of its kind on the market.  TruckingOffice is designed by truckers, for truckers; it has been tried, tested, and loved by other drivers; and the online interface is super simple to operate. But don’t take our word for it; go ahead and take it for a free, no-obligation 30-day test drive—we won’t even ask for your credit card or checking account information.  After that, if you haven’t fallen in love with what we’re confident is the best trucking business software out there, then just walk away.  It’s as simple as that.

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Make More Money In Owner-Operator Trucking By Getting Your Own Authority

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To make real money in owner-operator trucking, you need to have your own authority.  Sure, you can offer your services to a lease firm, and doing so is a great way for those with challenged credit to get their own rig.  But obtaining an authority can help you to consistently earn $2-$3 per mile—and it’s necessary if you ever want to hire other drivers and build a multi-truck enterprise.

 

What Is An Authority?

In the trucking world, an authority is basically permission granted by the Federal Motor Carriers Safety Administration (FMCSA) to transport goods for profit. There are two types of authority you can apply for: contract and common.  A contract carrier hauls freight only for firms that it has a contractual agreement with.  A common carrier, on the other hand, can hire itself out to any entity wishing to pay to have (legal) good transported, whether or not a formal contractual relationship exists.  In either case the carrier must hold a minimum of $750,000 liability insurance, but only common carriers need to have cargo insurance.

 

What Does Having Your Own Authority Mean?

It enables you to remove the middleman and go directly to receivers, shippers, and load matching services to obtain freight.  It’s more work and responsibility, but with bigger payoffs in return. Obtaining an authority is an essential step if you wish to maximize your profits as an owner operator.  Without it you’re limited to working for a leasing service.

 

How To Obtain Your Own Authority

  1. If you haven’t already done so, then you need to set yourself up as a formal business, either as a sole proprietor or a limited liability corporation (LLC).  Each has its own advantages and drawbacks.  See other posts on this blog for details.
  2. Then you’ll need an employer identification number (EIN) from the IRS.  Visit www.irs.gov for more information.
  3. Next, visit this site to download the application forms for obtaining an authority.  Or you can apply directly online, which will get the process completed more quickly.
  4. Submit form OP1, OP1 (b), or OP1 (ff), whichever applies in your case.  The site will instruct you how to determine which applies to you.
  5. If you haven’t already done so, then you’ll need to obtain both liability and (if you’ll be a common carrier) cargo insurance.  Make sure your insurer notifies the Federal Motor Carrier Safety Administration (FMCSA) of your coverage.  The more cargo insurance you have, the more freight you’ll be able to haul, so buy as much as you can afford.  The minimum required by law is $100,000, which on average will set you back between $600-$700 each month.
  6. About 10 days later you’ll receive your authority permit forms in the mail.
  7. At this point you’ve covered yourself with the federal powers-that-be.  Next you’ll contact your state DOT to take care of the following:
  • Your uniform carrier registration fees (visit www.ucr.in.gov to handle this)
  • Your IFTA forms (TruckingOffice’s IFTA software makes dealing with IFTA matters quick and easy)
  • Your International Registration Plan (IRP) forms
  • Your single state registration
  • Your DOT physical and alcohol/drug test
  • Your heavy vehicle use tax

You’ll find contact information for each state’s DOT at this site.

 

You’ll Also Need Great Trucking Software

There’s a lot more to being an owner-operator than simply having good driving skills.  There are dozens of forms, permits, invoices, and other kinds of paperwork to deal with as well.  That’s why you owe it to yourself to give TruckingOffice a try.  You can use it free for a month—no credit card or checking account required.  We’re confident you’ll find that your business is running smoother than you ever anticipated!

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Is Incorporating Your Business the Right Way to Go?

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One of the first things truck brokers need to decide is how to set up their firm. The law recognizes a number of ways to do so, including sole proprietors and partnerships. But you may find that incorporating your business is the right way to go. Here’s a look at some of the pros and cons of forming a corporation:

Pros

1. As a sole proprietor or partner, your personal assets are at risk in the event you should ever be sued or fail to pay business-related debts. Your home, bank account, vehicle, and even jewelry can be taken. If you incorporate, however, the only thing that can be taken are the assets of the corporation itself. This alone is enough reason for many business owners to incorporate.

2. Corporations enjoy many tax benefits unavailable to other types of businesses. For example, health insurance premiums can be deducted. And corporate enterprises are taxed at a lower rate than sole proprietorships. By incorporating and paying yourself a salary from your profits, you can significantly slash the amount of income tax you pay. You can even lease a business you own to the corporation, and deduct the cost of the rent from your company’s income.

If you ever want to sell your brokerage, incorporating makes your business more attractive to potential buyers. That’s because the new owners will not be held personal liable for most mistakes you might have made. On the other hand, someone who buys a sole proprietorship can be held liable for what the previous owner did. This can making finding a purchaser very difficult.

3. Keeping you business affairs confidential is much easier if you incorporate. Corporations are entitled to keep much of their information private, in order to maintain a competitive edge. And, if you incorporate in states like Nevada, you are granted additional rights to privacy in your business and financial affairs.

4. When approaching new prospects, being able to introduce your firm as a corporation adds an air of credibility to your presentation that is lacking when you’re a sole proprietorship or small partnership. Having INC. or CORP. after your business name can gain you clients that would otherwise pass you by.

5. Because a corporation can sell stock, you have other ways to raise operating funds besides using your personal credit or going to the bank for a loan. Of course this approach isn’t right for all brokers, but it’s a nice option to have on hand.

6. While we tend to think of corporations as being huge conglomerates, in fact they can be as small as one or two people. So don’t think that you brokerage is too small to benefit from incorporation.

Cons

1. Depending on the state you choose to incorporate in, the procedures for doing so can be expensive and time-consuming. In some cases you might need to hire an attorney to handle the paperwork, which adds additional costs. These requirements vary widely from state to state.

2. Even after you’re incorporated, you must keep detailed record on meetings, expense and revenue information, and many other details. Failure to do so can get you in trouble with the state regulators, and can actually end up costing you money if you need to hire a bookkeeper to handle your financial information.

No matter how you choose to structure your freight brokerage business, you’ll have an edge over your competition when you use TruckingOffice software. that’s because, unlike other truck broker software, you can access our service from any computer with an Internet connection. So you’re not tied to the PC in your office, allowing you to take care of important matters from virtually anywhere. Give us a free try; you’ll be glad you did.

 

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6 Home Office Organization Ideas for Truck Brokers

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Working as a freight broker can be very rewarding; in addition to the opportunity to earn excellent pay, there are perks like setting your own schedule and, if you choose, working out of your home. But, unless you’re a naturally organized person (and how many of us are?), you may quickly find yourself struggling to find what you need among the piles of paperwork. So here are some home office organization ideas to make everything a little easier:

1. Set up a dedicated space – This can be a spare room in your home, if you have one. If not, then put a table or desk in an empty corner and call that your office. The size isn’t really that important; many work-from-homers do just fine with a PC and desk set up in a closet or under a flight of stairs. What’s vital, however, is that it be devoted purely to business-related matters. Don’t let it do double-duty as a place to change diapers, watch TV, or do any activity other than work. This will help you focus your thoughts and keep your resources all in one place.

2. Think vertical – If you must make do with a tiny spot for your work area, then you probably won’t have a lot of room to spread things out. In many cases you can arrange things to rise towards the ceiling instead. Big box retailers and furniture stores have tall computer desks with shelves that do just that. You can put your computer at eye level, then your printer on the shelf above it, then folders or files on the one above that, etc. This is a great way to make the most of a confined space, but a lot of us don’t think of it because we naturally picture things going left to right, not up and down.

3. Piles are your enemy – If you have piles of pages stacked as far as the eye can see, you have an organizational nightmare on your hands. So tame that wilderness of printed forms by separating everything according to category. Keep what you really need, and trash or recycle everything else. Binders, paper clips, or staples can be used to keep documents in proper order. Write your own page numbers in multi-sheet documents, if none appear already. That way, if one gets shuffled around, you won’t spend precious time trying to figure it out.

4. Make a filing system – The key is to come up with a system that works for you. Some people do best with an A-to-Z alphabetical arrangement. Others set things up by subject, client, or date. All that matters is that it makes sense to you, and you can find what you need when you need it.

5. Keep supplies together – It can be a huge drain on your time if you have to take time from a project to track down a box of staples you laid down somewhere. Every office needs pens, paper, clips, folders, and a hundred other little things. So keep them in the same area and as neatly divided as possible, with the things you use most, like sticky notes or pens, close at hand.

6. Keep it clean – Even if you make use of all these home office organization ideas, it can all be in vain if things return to the way they were. So once you have everything right, take a few minutes each day to make sure it stays that way. You might want to devote the last five minutes of your workday to straightening, organizing, and tossing out stuff you no longer need. This will keep your workspace as tidy as possible, and prevent the paper jungle from rearing its ugly head again.

As important as it is to keep your paperwork straight, it’s just as important (perhaps even more so) to keep your virtual paperwork in order—that’s where TruckingOffice comes in. Our trucking brokerage software makes it easy to keep on top of expenses, dispatch loads, pay your drivers, generate invoices, and do all of the many tasks that come with the job. So take our online tour, and see what we can do to keep your business running hassle-free.

 

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Customers Trying to Find Freight Brokers Look For 7 Things

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One key to running any successful business is to know what potential customers are looking for. So here’s a summary of what those trying to find freight brokers want to see:

1. Proper licensing – Nothing scares potential clients away more than the fear that you might be shady. And that’s exactly what they’ll think if you don’t have a license from the Federal Motor Carrier Safety Administration. Amazingly, some brokers try to operate without this all-important piece of paper. That puts them at risk, and serves as a red flag for potential clients. So, if you haven’t got your FMCSA license yet, get it right away.

2. Multiple modes – The best brokers offer more than just OTR tractor-trailer services. Sometimes freight must go by flatbeds, reefers, train, padded van, or air. If you have connections with these carriers, you’ll quickly become the brokerage of choice for clients who need to utilize these different options.

3. Choose the carriers you work with carefully – Anyone familiar with the trucking industry knows that there are people out there operating rigs with no insurance or CDL. Your customers don’t want anything to do with them and neither should you. Make certain that all drivers you work with have their ducks in a row before offering them a contract.

4. Use e-mail to stay in touch with drivers – Clients will want to know how you match carriers to particular loads. They also want to know that you can confirm the freight was picked up and delivered according to the agreement. The best way to assure them that you’re on top of this is to keep written records of your contact with the driver. In this electronic age, the best way to do that is with e-mail. Of course phone conversations are fine too, but back up agreements with something that can be printed out or sent to clients.

5. Good credit counts – No one wants to work with a business that’s on the verge of bankruptcy. Potential clients will want to know that you pay your vendors on time, and that you don’t have any liens or judgments against your brokerage. Make sure you are paying your bills in full and as promptly as possible, and you’ll come out ahead in the long run.

6. How long you’ve been in business matters – This is one of the unpleasant facts that new brokers must face. You may possess all the necessary paperwork. You might be totally honest and have an extensive network of reliable, experienced carriers. But if you just hung out your shingle yesterday, so to speak, you’re still going to be viewed with suspicion by those looking to find freight brokers. You can partially compensate for this in several ways:

 Don’t bring up the age of your business unless you’re asked about it.

 If you are asked, emphasize the positives. If you were a professional driver for 20 years before becoming a broker, tell them that. If you’ve completed training programs that give you an edge over more established brokerages, mention that as well. If all else fails, then compete on price. Charge less than older businesses, at least until you’ve proven yourself.

 Seek clients among smaller or highly specialized companies – the big boys often overlook these clients, and they may be more willing to work with a new broker. They’ll have fewer loads for you, but they’re a fantastic way to build your reputation. When they see you treat your clients right, they’ll give you positive word of mouth with their contacts.

7. Join professional associations – The Transportation Intermediaries Association (TIA) is the “Better Business Bureau” of freight brokers. To be a member, you must abide by a strict code of ethics. Joining the TIA or similar groups shows that you’re serious about running your business properly, which clients love to see.

Of course none of these suggestions will do you much good if you’re not properly organized. TruckingOffice software makes organization easy, so you know what’s going on at all times with your clients, your fleet, and your employees. Our product is easy to learn and to use, so get in touch with us today to see how we can help you get organized!

 

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Are Freight Broker Schools a Good Investment?

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Freight brokering is a growing field, and with good reason. Few business opportunities offer its combination of advantages, including high-income potential, flexible hours, and the ability to work from home. Not everyone can be successful in it, though. Being a broker requires a diverse set of skills, including marketing, sales, customer relations, knowledge of the transportation industry, and a willingness to stick with it through the challenging early stages. To gain these abilities, many people are turning to freight broker schools. But are these programs worth the time and money involved?

The answer to this question depends on a number of factors. One is the level of business experience the aspiring broker possesses. Seasoned independent drivers, for example, know the transportation industry inside and out. That gives them an edge in understanding the problems faced by manufacturers, warehouses, retailers, and of course truckers on a daily basis. As business owners, they’re accustomed to handling their own taxes, collecting overdue compensation, dealing with problem clients, balancing their books, and all of the other tasks involved in running an enterprise.

 

Such persons probably already possess most of the skills needed for success as a freight broker. However, they might benefit from training in certain areas, such as sales and marketing, or dealing with regulations specific to the brokering business. In these cases, taking a class or two from an established institution might be the way for them to go. They may also benefit from the chance many schools offer to actually sit inside of a broker’s office and observe the day in, day out activities that take place.

 

Then there is the person who has experience as a driver and/or distribution center employee, but little or no business training. He or she would probably benefit a great deal from attending a reputable broker education program. There they will learn exactly what brokers do, the forms and regulations they must deal with, how to open up shop, market their services to truckers and warehouse managers, do basic accounting, run an office, hire help, etc.

 

If one does decide to get formal training, then it pays to be a careful shopper. Just Google “freight broker schools” and you’ll get page after page of results. Many of these programs are run by quality people and are well worth the money they charge. Some are less than wonderful, and a small number might be outright scams.

 

So how can a person tell a good opportunity from a poor one? One way is to check with the Better Business Bureau. Their web site is www.bbb.org, and they keep records on many brokerage schools, both BBB members and non-members. They also have local offices in most cities, where you can speak with someone directly.

 

Another way is to check with the department of education in the state where the school is located. Make sure that it has been granted a license to offer training by the proper authorities. Check on how long it has been in operation. A program that has been going for years in the same location is more likely to be legitimate than one that just set up shop last week or has moved across the country multiple times.

 

Perhaps the best way to gauge a program’s quality is simply to ask established brokers which one they recommend. Many of those already in the business are happy to steer a newcomer in the right direction. Checking online reviews from those who have attended a school is yet another way to separate the winners from the losers.

 

No matter which way you enter the field, one thing is sure: you’ll need the right trucking software to succeed. TruckingOffice can help you gain the competitive edge necessary to make good money as a freight broker. Check out our plans, then contact us with any questions you may have.

 

 

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TruckingOffice, LLC Acquires HammerLane Software, Inc.

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TruckingOffice today announced an agreement to acquire HammerLane Software, a long time provider of desktop applications for owner operators, leased fleets, and full fleets in the trucking industry.

TruckingOffice is an online software system targeted at owner operators and small fleets.  It is an all-in-one trucking management software (TMS).

Fred Gasperson, a pioneer in TMS, started building HammerLane in 1986.  He saw a need for an easy to use system to run trucking businesses.  

“The needs of today’s trucking company have changed, but they still need something that is easy to use.  I’m excited to see the work I started moving into the next generation.  I’m also glad to see that the mission of helping out truckers is being carried on by TruckingOffice”, said Gasperson.

TruckingOffice and HammerLane Software share the common mission of giving owner operators and small fleets the tools they need to run their trucking businesses successfully.

“With increased competition, volatile fuel prices, and increasing regulation, running a trucking business is hard enough.  We share a common mission with HammerLane: make running the business easy,” said Allen Campbell, Director of Business Development.

TruckingOffice will begin working with HammerLane customers immediately to transition from the desktop to the Internet so that they can gain all of the benefits of TruckingOffice’s advanced technology.

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Trucking Industry Trends

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Here’s a question for you: what do your clothes, your soap, your car, your computer, and your sofa have in common? Answer: all of them were delivered by truck to the stores where you purchased them. Virtually everything you’ll find for sale is transported by 18-wheelers. Our economy couldn’t function without the interstate highway system and the men and women who make their living hauling freight. With the way that trucking industry trends are headed, the demand for trucking services will continue to grow in the months and years ahead.

 

This system doesn’t always work smoothly. Sometimes goods need to be shipped, but the supplier doesn’t have anyone to pick them up. This may be because the regular driver is out sick, their truck is down for repairs, or the normal carrier is booked up. When this happens, warehouses and factories need to find someone to pick up and deliver their goods, and fast. Retailers don’t like empty shelves anymore than shoppers do. Plus, many items such as produce and dairy products have a limited window of time in which to be sold, and failure to get them to their destinations can cost suppliers a hefty sum.

 

This is where the opportunity for you to own a successful business comes in. As a freight broker (also known as a truck broker), you will pair suppliers needing to ship goods with carriers willing to transport them. Think of it as being a matchmaker, with profit rather than romance being the goal. Truck brokers “leverage their knowledge, investment in technology and people resources to help both the shipper and carrier succeed,” according to Robert A. Voltmann, CEO of Transportation Intermediaries Association, an organization that promotes the interests of truck brokers.

 

There are two types of truck brokers. One is a person or small company that simply acts as a go-between for suppliers and carriers; that is, they make the deal between the two parties but do not offer transport services themselves. The other is a cargo company that arranges for other firms to carry loads they can’t service themselves, due to schedule conflicts or other factors. In either event, the broker earns money by charging a fee for making the arrangement.

 

Brokers provide an invaluable service to thousands of manufacturers, warehouses, and retail locations across the country. Many times, they are the only ones who can pair suppliers with available carriers, making the difference between an on-time delivery and a disastrous missed shipment. The demand for their services is constant, and will only grow as the economy expands. This translates into a fantastic opportunity for those who have the equipment, know-how, and skills to make it in this business.

 

How do you get started? First of all, you’ll need some experience in the transport industry, and the best way to gain this is by working for a supplier or carrier. This will teach you the lingo and industry knowledge you’ll need, as well as provide opportunities for you to make contacts that will later become your clients. Some of the positions that will give you these things are warehouse worker or manager, truck driver, or dispatcher for a freight line.

 

In addition, you can also break into the field by working as an agent for an existing broker. An agent does the legwork in a geographical area that’s separated from the broker’s offices. They normally work out of their homes, and their equipment investment is minimal. A phone, fax machine and PC with printer are all you will need. If you have experience in sales, customer service, or public relations you may already have the basic skills to be an agent.

 

As far as initial paperwork is concerned, you’ll need to fill out a form known as the Federal Motor Carrier Safety Administration (FMCSA) OP-1 Application for Motor Property Carrier and Broker Authority. This can be downloaded from www.fmcsa.dot.gov. You will also need to provide proof of $10,000 insurance in the form of a surety bond or a trust fund account, as well as a $300 application fee you’ll mail in along with the form. You can also fill out the application at the web site and pay the fee online with a credit card.

 

Furthermore, you will need to complete a form known as the BOC 3 that names your legal representative or process agent, have your insurance company file forms with the FMCSA, and sit through a ten-day waiting period. After that your broker’s license will be issued. There are no education or training requirements, and an adult of any age can obtain one.

 

Regarding finances, one of the advantages of getting into this business is that it lends itself easily to working from a home office. This will save you the significant expenses that come with renting and furnishing a commercial office space. Marketing need not cost a fortune, either. Making relationships with suppliers requires nothing more than the initiative and sales expertise to approach shipping and warehouse managers and offer your services. You can form a network of drivers and trucking companies by advertising in truck stops or trucking magazines.

 

One thing that you will need is a sizable line of credit with a financial firm, unless you have $250,000 to $300,000 available in cash or deposits. This is because you will pay the carriers first, and then wait for reimbursement to be issued by the shippers. A solid business plan as well as a good relationship with your banker can help a great deal in getting the necessary financing.

 

A typical day (or night) at work will go something like this: you get a call from a supplier—let’s say it’s a furniture manufacturer. They inform you that they have a hundred recliners that need to be sent from their location in Atlanta, Georgia to a chain of furniture stores in Colorado within three days. You contact a transport company or independent truck driver by phone, fax or email and say “XYZ Furniture Company in Atlanta has a load of recliners that needs to be picked up today and arrive at a location in Colorado in 72 hours. Can you do it?” If they say yes, you fax them a written agreement with the details of the job. They then sign it and fax it back to you before dispatching the driver.

 

You want to make sure all goes well, so you should have the driver call you to confirm the pickup, and then contact you again when the freight has reached its destination. Once this has been done, the carrier will invoice you for the cost of hauling the freight. You pay them, and then send your own invoice to the supplier. You then repeat the process with different carriers and shippers, each time earning a profit for your efforts.

 

A question that’s probably on your mind is how much a truck broker can earn. As with any business, the possible amount varies, depending on many factors. However, it’s safe to say that an income of $100,000 to $150,000 per year is entirely realistic. Some brokers earn much more, while a handful make far less. The more contacts you have, and the more reliable you and your drivers are, the better reputation you will have, and the more money you will earn.

 

One way to help grow your business and increase your bottom line is to find a niche market to specialize in. Potential niches include specific types of cargo, such as produce or bulk goods; a certain geographical area, such as the southeast; or a specific industry, such as textiles or electronics. Pay attention to developing trucking industry trends for potential opportunities here.

 

One thing that you will definitely need is trucking brokerage software. This will enable you to manage all of the invoices, schedules, bills and other details that come with this business. Our TruckingOffice software is designed to do just that, and it is customized to the specific needs of truck brokers. You can be up and running within five minutes after signing up for your free tial.

 

Get your free trial now!

 

 

 

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New Brokerage Software Now Available

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TruckingOffice is now offering brokerage software for only $45 per month for unlimited usage. This easy to use trucking brokerage software features load tracking, carrier maintenance, and customer management.

  • Load tracking
  • Customer history
  • Carrier history
  • Lane history
  • Quick searches and sorting
  • Expense management
  • Invoicing
  • Integrated miles
  • Dynamic reports

Perfect for a new broker getting started, an agent for a large trucking company, or any broker who is ready for an upgrade.  Organize all of your contacts, shippers, carriers, load history, invoicing, and expense management in one place.

 

GET THE FREE TRIAL

 

 

 

 

 

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What is Truck Brokering? What Do You Need to Know?

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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.

 

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

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.

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. Eliminating 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.

 

 

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