One of the most important factors in running a successful trucking company is knowing where to find work. If your trucks don’t have enough loads to haul, they’ll sit and not earn revenue. Many trucking companies work with freight brokers to help keep their trucks loaded. Freight brokers play an integral role in the trucking industry and chances are that you’ll work with one when you start your own trucking company.

If you need to get your trucking authority, give TexasTruckPermits.com a call! We make the process of obtaining your USDOT number, MC number, BOC-3, and other required permits easy! We guide you through the process and ensure you meet all required regulations to successfully start your trucking company. Located locally in Houston, we have helped trucking companies all over Texas and the United States start and run their successful trucking business.

A freight broker is a company or an individual who works in connecting shippers who have goods to transport with an authorized motor carrier that wants to move those goods. Freight brokers vary in size. There are some that are small mom and pop businesses and some can be big corporations that do thousands of loads a day such as C. H. Robinson Worldwide and Total Quality Logistics. Freight brokers work with a variety of different cargo types and sometimes have their own niches that they focus on. Some are good to work with if you only haul a certain trailer type such as flatbed freight, dry van freight, hazardous materials, intermodal, or reefer freight. Others can provide you loads for any trailer you have.

 

Why are freight brokers needed?

Freight brokers are essentially 3rd party logistics companies that help shippers move their loads. Many shippers don’t have the logistics know-how to move their own freight or they don’t want to invest time into it. Freight brokers reduce the hard work in moving freight by finding drivers for the shipper’s loads, They also help trucking companies by providing them loads to haul. Freight brokers deal with lots of paperwork that comes with navigating loads and negotiations. Some freight brokers have connections with many trucking companies and shippers so they can keep loads moving constantly. Good freight brokers are well versed in industry regulations so that they can make sure they’re moving the goods legally and with few hurdles. Contacting freight brokers is a good way to find loads as a new trucking company. They provide you loads if you don’t have contacts with direct shippers and they can reliably keep you loaded.

 

Tips for when it comes to dealing with brokers

  1. Check credit! Make sure to check credit on a new broker you’re working with! There are 1000’s of brokers out there and not all of them are good companies. Like all industries, there are bad actors who can have fraudulent intentions and not pay you for the work you’ve done. We can check credit for you and you can get paid for your loads the same day by factoring with our partner in-house factoring company!
  2. You have a wide range of options when it comes to working with freight brokers. You can work with multiple freight brokers. You’re not just limited to one! Some owner operators work with a different freight broker every day. However, if you develop a relationship with a good freight broker, they can keep you loaded all the time.
  3. Brokers will ask you to sign a carrier-broker agreement and also for you to send a carrier packet to them. To expedite the process, have a carrier packet saved on your computer and phone. The carrier packet should have your MC number certificate, insurance certificate, contact info, W-9, and NOA in it. We can help you put together your carrier packet once we’re done with your new trucking authority setup.
  4. Keep a blank set of bill of ladings in your trucks. The bill of lading is the most important document you get when hauling a load. It’s good practice to keep your own set of blank BOLs for the receiver to sign in addition to the provided bols when you deliver your loads. Make sure to grab all the bill of ladings that the shipper provides for each stop and get them signed by the shipper and receiver. It’s imperative that you get them to sign your bill of ladings. These signatures and good documentation proves that you indeed did deliver the load. Failing to get all the pages of the bill of ladings and not getting them signed can result in non-payment by the broker or shipper as you won’t have adequate proof that you delivered the load..
  5. Brokers are always trying to get their load moved for the lowest possible price. Make sure to know your operating costs before accepting a load so you don’t lose money! Make sure that you know how much it costs you to haul a load by CPM(cost per mile) You need to factor in fuel expenses, driver expenses, insurance expenses, and more. If the load doesn’t pay enough for you to make a profit then you should negotiate a higher rate.
  6. When you start a new trucking company, many brokers may not let you haul their loads until your trucking authority is a few months old. TexasTruckPermits.com can provide you a list of brokers that accept new authorities to help you navigate your first few months. It’s not impossible as every new trucking company has gone through it and you have our team at TexasTruckPermits.com to guide you through your new beginnings.

 

How can I find freight brokers?

Load boards

The main way that truck drivers find loads with freight brokers is through trucking load boards. Trucking load boards are websites where brokers and shippers can post loads. Trucking companies can go on this load board and see the specifics of the loads being posted. Most load boards have a subscription fee and also offer other features such as route mapping and fuel use calculators. Once a freight broker gets to know that you’re a good trucking company to work with, they’ll start contacting you directly to handle their loads

Dispatchers

Another alternative If you don’t want to deal with the paperwork or don’t have the experience to use a load board is hiring an independent trucking dispatcher. Trucking dispatchers are people you can hire to find you loads for your trucking company. They fill out the carrier packet, check credit, negotiate rates, and guide you on the route to delivering the load. Dispatchers usually take a percentage of the rate on the load hauled. They can be an integral part of your company and can really help you run your business so that you can focus on the road.

TexasTruckPermits.com has a great network of dispatchers that we work with regularly. Depending on your trailer type, we can help you find a great dispatcher once you get started.

 

Alternatives to working with a freight broker

Shippers

Some trucking companies may not like to work with freight brokers. Freight rates on loads offered by freight brokers tend to go up and down as the market cycle changes through the years. Freight brokers also take a cut on the rates they negotiate with shippers before contracting out the load to a trucking company.

A good alternative is to work directly with shippers. However, this can be hard to come by if you’re a new trucking company and don’t have contacts with shippers. You may have to do cold calling and knock on some doors to get in with shippers. Many shippers also don’t want to work with small trucking companies and owners operators as they can’t move enough loads that are needed. Shippers will usually want you to have a minimum fleet such as 5-10+ trucks to work with you. Shippers have better rates and tend to have a more frequent stream of work which can help your company grow fast if you can find the right shippers. However, some shippers will want you to sign a contract agreeing to move a certain number of loads a month. If you can’t move them, they’ll rethink working with your trucking company.

Along with trucking companies, freight brokers are a significant part of America’s supply chain. They connect shippers and trucking companies to move as many loads as possible. They’re also a great help for small trucking companies who have difficulties getting business with shippers. Our goal here at TexasTruckPermits.com, is to help as many small business owners realize their dreams and start their own trucking company!

 

Need help starting your own trucking company?

TexasTruckPermits.com can help with everything you need to get your trucking company started. We help you get your trucking authority, get all the required trucking permits, and guide you through the entire process as you start your business. With a high customer satisfaction rating, we’re the best at helping people start and run their successful trucking companies!