Sep 23, 2021
Topics Discussed: How do freight brokers make money?
- Broker contacts shipper
- Provide the shipper with a freight quote
- Ship tenderers load to broker
- Approve the vendor’s credit
- Broker posts load on load board
- Find a truck
- Send the broker-carrier-setup packet to the carrier
- Carrier send back signed broker carrier agreement
- Broker sends rate conformation
- Carrier signs and returns rate confirmation
- Broker dispatches driver into pickup location on day of load
- Check calls
- Broker monitors delivery
- Carrier sends invoice to broker
- Broker invoices shipper with copy of a signed copy of the bill of lading
- Broker going to pay the carrier
- Broker receives payment from the shipper
DOWNLOAD Free Cheat Sheet at https://www.freightbrokerbootcamp.com/money
Episode Highlights:
[00:00] How do freight brokers make money
[01:04] #1 – Contact your shipper either by phone, email, or face to face. Start the conversation.
[01:29] #2 – Provide the shipper (or potential shipper) with a quote for a load or freight.
[02:06] #3 – Assuming the shipper accepts your quote and accepts you as their broker, they will tender you a load. Tender simply means they will send you an offer for a load. You will need to accept that offer to make that load yours.
[02:52] #4 – Assuming they are a new customer, you will need to approve their credit.
[03:34] #5 – Once you approve their credit, you will then need to post that load on your favorite load boards; 123 Load Boards, Truckstop, Direct Flight are some examples. Post details on that load, this will create visibility for carriers searching for loads.
[04:08] #6 – Find a truck to cover that load. This will come in the form of inbound or outbound calls. Either a carrier will call you or, if you see a truck that matches that load, you will call them to negotiate.
[04:53] #7 – Send the broker carrier setup packet to the carrier
[05:12] #8 – The carrier will then send back a signed copy of the broker carrier agreement with proof of insurance.
[05:45] #9 – You will then send a rate conformation to the carrier, assuming they have been fully vetted. It includes details about the load; origins, destinations, pick-up times etc.
[06:10] #10 – Carrier then signs and returns rate confirmation
[06:17] #11 – Broker dispatches driver into pickup location on day of load to make sure the carrier will pick up the load on time.
[06:34] #12 – After pickup, the broker will do daily check calls on the load to touch base with driver. This is to make sure the driver is on time for delivery.
[06:59] #13 – The broker is responsible to make sure the freight delvers on time, in good conditions, and with no damage.
[07:15] #14 – Carrier will send an invoice to the broker. This should include a signed copy of the bill of lading and any other shipping documents.
[07:32] #15 – Broker invoices shipper with a signed copy of the bill of lading
[07:49] #16 – Broker is responsible to pay the carrier on time based on terms of invoice or agreements, typically no more than 30 days.
[07:58] #17 – Broker receives payment from the shipper
[08:40] Recap of the 17 steps
[10:37] Cheat sheet: How freight brokers make money
DOWNLOAD Free Cheat Sheet at https://www.freightbrokerbootcamp.com/money
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