A typical day in the life of a freight forwarder
Freight brokers act as intermediaries by arranging the transportation of cargo between shippers and motor carriers. The freight broker then receives a commission for their matchmaking skills. Freight brokers are also known as trucking agents, freight forwarders, real estate agents, and third-party brokers.
Although the business concept in freight brokerage is very simple, there are many details and procedures that need to be mastered. The broker needs to know what to do, when to do it, how to do it, why to do it, and who to do it with. Since this is a service-oriented business, it only makes sense to learn the multitude of demands and requirements, especially in light of the fast-paced environment that only seems to get bigger and bigger.
While actual “on the job” experience is the best teacher, it’s hard to find brokers willing to hire new agents. Formal training with qualified individuals who have actual brokerage experience helps put everything in perspective for the beginning broker. As a result of using a good mentor, the new broker not only gets the tools of the trade, but also gains a note of confidence.
With that being said, let’s take a look at a typical day in the life of a freight forwarder.
After the freight broker has made many phone calls to potential customers, you should have maybe 20, 30, 40 or more shippers in your database. The initial information that each broker will collect will be of a general nature: what type of cargo is sent by the carrier, where are the normal collection and delivery points, what type of truck is required, etc.
1. With a client base in hand, the broker will want to start placing orders by making phone calls to shippers early in the morning, perhaps 7:30am to 10:30am. This is when most shippers are putting the finishing touches on their needs. Basically, the broker asks if the carrier is looking for any trucks on that particular day.
If the answer is “No”, the runner moves on to the next and the next. At some point, the broker finds a “hot” one (or several) and that’s when the action begins.
After the broker has “tested” itself, the sender will actually initiate calls to the broker instead of the broker always calling the sender. And the carrier may want to work more proactively by looking for trucks 3-5 days in advance rather than just on a daily basis.
2. Once the shipper has a load for which he needs a truck, the next step is to take the shipper’s order. The sender will go into detail about what is required. Any uncertainties the broker has should be clarified immediately. It is imperative that the broker communicate the correct information to each truck driver or dispatcher when they begin calling.
3. The broker will then estimate the rate that is needed and contact the carrier; or the broker will simply ask the carrier how much he wants to pay. After some calculations, the freight forwarder will get an amount that he will offer to the truck. The ideal starting point is to earn at least a 10% markup on each upload.
4. The next step is to post these loads on Internet load boards. There are numerous load boards where loads are posted, as well as truck searches that can be done.
5. After posting these loads, the broker will go to their database of available trucks. The broker will then call each carrier to see if they have a truck available. Meanwhile, the broker may be receiving incoming calls from people who are responding to posts on the upload boards.
6. At some point, the broker is looking for the driver or dispatcher who will say, “Yes, I want the load.” Sometimes the broker will not find a truck. This is not like shooting fish in a barrel; however, with experience and gaining repeat business, the broker will “cover” more and more loads.
7. After the broker receives the “Yes” from the carrier, he or she immediately calls the carrier to say that the load is being booked.
8. The broker will then fax your setup package to the carrier. While the carrier processes the agreement and other documents, the broker will check on the carrier to make sure they are properly licensed and insured. This is done online or by phone.
9. The last item sent to the carrier is the “confirmation”. The carrier must immediately sign and date this document and fax it back to the broker.
10. Once the broker has this confirmation in hand, the broker will want to call the truck driver if the driver has not called the broker himself. The details of the load are then given to the driver along with the instructions. For example, the broker will ask the driver to call when they are loaded and when they are emptied or if there is a problem. The broker will also ask the driver to call at least every morning if it is a multi-day trip. These are important requirements that every broker must be ready to implement.
11. After the cargo is delivered and the carrier has informed the broker, the broker will want to call the shipper to let them know the status.
12. Any delivery issues that may include missing parts or damaged cargo must be discussed between the shipper and the carrier. Sometimes the runner will intervene; however, the broker is never responsible for any damage or missing parts unless the broker is negligent.
13. Finally, with the cargo delivered safely and on time, the broker is ready to do the process over and over again.
While this routine may seem casual and boring at times, this is not the truth. Most of the time, the broker will experience smooth operation. However, there will be times when problems arise: late deliveries, failure of the carrier to pick up a cargo, damaged cargo or missing parts, long delays in cargo pickup or delivery, all of these must be dealt with by the broker. .
It is impossible to avoid problems, but it IS possible to stay vigilant and ready to deal with problems proactively. If the broker works hard and smart for the carrier, if the broker deals honestly with the truck and pays the truck on time, the broker is well on his way to a successful business.