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Freight Brokers Job Responsibilities

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Freight Brokers Job Responsibilities

A freight broker is a third party individual responsible for matching a load with a carrier from the shipper to the consignee. The reason brokers are in business is the fact that manufacturers can take a huge workload off of their shipping department by allowing a broker to manage the shipments. The broker is responsible for quoting a rate to the shipper for the load, finding a carrier, negotiating a rate with the carrier, and ensuring the load is successfully delivered. While doing all of this, they are striving to make a decent profit between the rate they are getting from their customer and the rate they are paying the carrier.

As an agent, you are responsible for setting up new customers, carriers, handling rate confirmations, and faxing all of this to your brokerage. You must stay in constant contact with your brokerage, customers, and a driver that is under one of your loads. You want to stay on the driver to make sure they are on time, in route, and following all necessary load information. You will also be on call at all times in case there is a problem with the load. You are responsible for that load. The customer trusts you as a business partner to handle a large amount of money in that load.

The broker, as an independent agent, answers to their brokerage. They must operate in a manner reflecting the ethics of the company they work for. Brokers are usually 1099 contractors and are responsible for their own taxes. The brokerage will usually pay you your commissions weekly and also provide detailed commission reports.

Now there are employee type broker positions. These brokers are usually handed a book of business to deal with on a daily basis and are paid salary. These positions are usually rare, and do not come easy. The real entrepreneurs decide to become independent agents. And I have seen employee brokers that realize the income potential they could make as an independent agent only to go out on their own.

If you are an agent, your brokerage also has responsibilities. They should handle all of the back office work. This would include billing, collections, payroll, and other normal office duties. They should provide software for the agents, a commission split, and often provide load board subscriptions. They are also responsible for credit approvals for the customers and carriers. They handle paying the carriers also.

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