Are longer, heavier trucks the solution to freight capacity crisis?
Today's post comes from Logistics Management and is written by John D. Schulz, Contributing Editor. There is a growing pile of freight forecasts over the next decade or so and the bottom line on all those reports is simple. “It is up and up and up,” said Bill Graves, president of the American Trucking Associations, told a group of 75 shippers at the National Industrial Transportation League's (NITL) Spring Policy forum held just outside of Washington earlier this week. “There’s going to be enough freight for everybody. How the pie is sliced up really doesn’t matter. We’re obviously going to have a lot more trucks out on the road.” To read the remainder of this article click here.
Work from Home Tips
Working from home is great…and not so great at the same time. There are many distractions: an extra hour of sleep, calls from friends, the yappy dog, the household chores, etc, etc… Here are a few tips for successful working from home:
1. Set a goal for everyday. In Freight Brokering you got to commit to make 50 calls a day, everyday. Call new contacts as well as follow up with old ones. Today may be the day they need you, but you have to call and ask. Keep an idex card on each customer with things you learn about them, personal as well as professional so you have at hand great talking topics. Building relationships takes time but is worth the effort.
2. Handle your toughest chores first. We tend to put off the things we don’t like to do. But if you get those out of the way your mind will be freed up to do those things that you want to do. Only when you’ve cleared out the burdens will your mind be able to dream big.
3. Keep your workspace organized. We work more efficiently when our area is uncluttered. Clutter around will translate to cluttered thinking.
4. Take time to plan. Failing to plan is planning to fail. And how do you know you’ve reached a goal if you haven’t set one.
5. Figure out your greatest motivating factor based on who you are. Personality wise: Drivers are motivated by control. Perfectionists are motivated by order. Peacemakers are motivated by ease. Populars are motivated by Fun. A popular makes sales calls fun by turning them into a game of cheer. How many grumpy people can I talk to today and try to turn around their attitude?
These are just a few work from home tips. Appreciate the luxury of a home office. Reward yourself everyday for a job well done by concentrating on what went right in the day rather than who irked you. Don’t let the distractions shake your focus from your goals. Reaching goals will give you a sense of accomplishment that is reward in itself.
1. Set a goal for everyday. In Freight Brokering you got to commit to make 50 calls a day, everyday. Call new contacts as well as follow up with old ones. Today may be the day they need you, but you have to call and ask. Keep an idex card on each customer with things you learn about them, personal as well as professional so you have at hand great talking topics. Building relationships takes time but is worth the effort.
2. Handle your toughest chores first. We tend to put off the things we don’t like to do. But if you get those out of the way your mind will be freed up to do those things that you want to do. Only when you’ve cleared out the burdens will your mind be able to dream big.
3. Keep your workspace organized. We work more efficiently when our area is uncluttered. Clutter around will translate to cluttered thinking.
4. Take time to plan. Failing to plan is planning to fail. And how do you know you’ve reached a goal if you haven’t set one.
5. Figure out your greatest motivating factor based on who you are. Personality wise: Drivers are motivated by control. Perfectionists are motivated by order. Peacemakers are motivated by ease. Populars are motivated by Fun. A popular makes sales calls fun by turning them into a game of cheer. How many grumpy people can I talk to today and try to turn around their attitude?
These are just a few work from home tips. Appreciate the luxury of a home office. Reward yourself everyday for a job well done by concentrating on what went right in the day rather than who irked you. Don’t let the distractions shake your focus from your goals. Reaching goals will give you a sense of accomplishment that is reward in itself.
New Career Course for Disabled Vets
Are you a disabled veteran? You may qualify for training to work from home being a freight broker agent through brooketraining.com. (school #S2133)
Our once a year, 2 week course (basic + advanced training) will be offered June 18-29, 2007. The price of the training, equipment and travel and meals is 100% paid for through the Vocational Rehabilitation Department if you qualify. Only your counselor can decide if you qualify and if this is good fit for you.
Brooke offers a one week course every month and an online course that can be taken anytime.
The career school teaches people to be freight broker/agents. This is a real Home Based Business. Students will learn freight brokering, and get the best hands-on training available. Students will find customers and book freight while in class. They'll leave with classroom knowledge and hands on experience.
A freight broker/agent matches truckers with manufacturers who need goods moved across the country. Freight brokers are always needed in the $600 billion a year transportation industry. Most agents work from home and need basic computer skills and phone skills and the right training to get started.
The VA counselor has to be the one to contact us and we can't sell to them. They must make the decision to send people to us. Many needing to work from home have found this to be a perfect career path.
For more information visit www.brooketraining.com and give your adviser
our career school number: S2133. Please read our vision and mission. I believe we can help a lot of people.
Feel free to contact me on my private number if I can be of assistance in any way or contact an admissions counselor at (817) 491-9236 to confirm if you qualify. This is the same process for all applicants wanting financial aid through either the Texas Workforce and Veterans Affairs Administration AND the Texas Department of Rehabilitative Services.
The VA program is a federal program and often the VA Administration pays for travel, food, computers, phone, fax, printers, and scanners...plus for the training. This two week June class is offered exclusive for Disabled Veterans and we do it once a year. I believe you have to be considered 10% disabled to qualify. Now would be a good time to research this career path if you are interested and contact your local counselor to see if you qualify.
Of course other schools offer this training; however, we are the only ones that offer it on-line through universities nationwide.
This is a perfect way to stay engaged in the work force while working at home.
Our once a year, 2 week course (basic + advanced training) will be offered June 18-29, 2007. The price of the training, equipment and travel and meals is 100% paid for through the Vocational Rehabilitation Department if you qualify. Only your counselor can decide if you qualify and if this is good fit for you.
Brooke offers a one week course every month and an online course that can be taken anytime.
The career school teaches people to be freight broker/agents. This is a real Home Based Business. Students will learn freight brokering, and get the best hands-on training available. Students will find customers and book freight while in class. They'll leave with classroom knowledge and hands on experience.
A freight broker/agent matches truckers with manufacturers who need goods moved across the country. Freight brokers are always needed in the $600 billion a year transportation industry. Most agents work from home and need basic computer skills and phone skills and the right training to get started.
The VA counselor has to be the one to contact us and we can't sell to them. They must make the decision to send people to us. Many needing to work from home have found this to be a perfect career path.
For more information visit www.brooketraining.com and give your adviser
our career school number: S2133. Please read our vision and mission. I believe we can help a lot of people.
Feel free to contact me on my private number if I can be of assistance in any way or contact an admissions counselor at (817) 491-9236 to confirm if you qualify. This is the same process for all applicants wanting financial aid through either the Texas Workforce and Veterans Affairs Administration AND the Texas Department of Rehabilitative Services.
The VA program is a federal program and often the VA Administration pays for travel, food, computers, phone, fax, printers, and scanners...plus for the training. This two week June class is offered exclusive for Disabled Veterans and we do it once a year. I believe you have to be considered 10% disabled to qualify. Now would be a good time to research this career path if you are interested and contact your local counselor to see if you qualify.
Of course other schools offer this training; however, we are the only ones that offer it on-line through universities nationwide.
This is a perfect way to stay engaged in the work force while working at home.
Brooke’s Mission and Vision
Our mission:
Educate and motivate the Go Givers and the Go Getters.
Our Vision:
Help others realize their God Given right to success, put the past behind and start fresh daily. We are responsible for our future. We are the only ones who can use our abilities.
Help those who really need to work from home have a viable opportunity and to give them a map with clear directions. We believe the only true joy in life is in helping others. Not for the glory but because we all need help, grace and humility.
Even though our focus at Brooke Transportation Training is freight brokering, we are truly in the small business-business.
We have the resources every small business needs:
• Business plans for every type of business from Palo Alto.
• How to books from Entrepreneur.com.
• Motivational products from Ziglar Training.
• Business consultants and trainers through Brooke Consulting
• Top ten elearning courses (click Gatlin's blue logo on our site).
In Texas we have the top monthly freight broker training course. We train people how to be freight brokers from home. This is an ideal career for people with disabilities, work from home moms and truck drivers.
We will be announcing a date for a full day of advanced sales training from Bryan Flannigan, a top trainer for Zig Ziglar. We will be testing this market and local demand. I will be sending emails to mortgage companies and insurance agents to promote Bryan’s advanced course.
The goal of this blog is to help people wanting to get into the best home based business (freight brokering) as well as offer other product essentials for the small business on our web site. Check out our affiliations. We advise you to visit them. We are proud and honored to be aligned with such prestigious groups.
Educate and motivate the Go Givers and the Go Getters.
Our Vision:
Help others realize their God Given right to success, put the past behind and start fresh daily. We are responsible for our future. We are the only ones who can use our abilities.
Help those who really need to work from home have a viable opportunity and to give them a map with clear directions. We believe the only true joy in life is in helping others. Not for the glory but because we all need help, grace and humility.
Even though our focus at Brooke Transportation Training is freight brokering, we are truly in the small business-business.
We have the resources every small business needs:
• Business plans for every type of business from Palo Alto.
• How to books from Entrepreneur.com.
• Motivational products from Ziglar Training.
• Business consultants and trainers through Brooke Consulting
• Top ten elearning courses (click Gatlin's blue logo on our site).
In Texas we have the top monthly freight broker training course. We train people how to be freight brokers from home. This is an ideal career for people with disabilities, work from home moms and truck drivers.
We will be announcing a date for a full day of advanced sales training from Bryan Flannigan, a top trainer for Zig Ziglar. We will be testing this market and local demand. I will be sending emails to mortgage companies and insurance agents to promote Bryan’s advanced course.
The goal of this blog is to help people wanting to get into the best home based business (freight brokering) as well as offer other product essentials for the small business on our web site. Check out our affiliations. We advise you to visit them. We are proud and honored to be aligned with such prestigious groups.
A Lot to Prove
I found this story of interest for Disabled Vets in News Enterprise On line.
http://www.newsenterpriseonline.com/articles/2007/03/25/news/news02.txt
A LOT TO PROVE: As a service officer for the disabled, Dave Jarrett helps hurting vets make their cases
By C.J. GREGORY
Saturday, March 24, 2007 8:09 PM CDT
ELIZABETHTOWN — In taking the job as state service officer for Disabled American Veterans, Dave Jarrett said he didn’t fully understand what the job would entail. He thought it would be a simple matter of getting the right forms to the right veterans, but it’s turned out to be much more.
“I thought it was going to be a cake walk, because my process was very easy,” said Jarrett, who personally has been through the steps of filing a claim with the Department of Veterans Affairs. “But I’ve gone from simply doing paperwork to being a cold case investigator. I’ve got to work with the veteran to go back and get things.”
Jarrett works to get veterans the disability benefits for which they’re eligible. But determining that eligibility is the most difficult part of his job.
A veteran has to satisfy two main conditions before a claim can be filed, Jarrett said. The injury or condition has to have occurred while in the military, and a determination must be made that the injury is causing ongoing problems.
“Proving something happened in the military is very, very hard to do,” Jarrett said.
Often, one piece of documentation usually can clear matters up very easily.
“The most important document they can have is their DD2-14,” he said. “It will have medals, rank and job codes. You can get a fairly good history from that.”
More often than not, obtaining that all-important piece of paper is impossible. In way too many instances — too many to count — none of a veteran’s papers exist anymore, Jarrett said.
“I find with most veterans, putting together the story on something is very hard,” he said. “You wouldn’t believe the number of veterans whose records were destroyed in a fire” in St. Louis.
For many of the people he sees, most of whom are veterans of the Korean War and earlier conflicts, even their backup records are gone.
“In addition, there was a fire at the National Archives that also destroyed records,” he said.
Occasionally, he’ll be contacted with a story that just doesn’t seem possible, Jarrett said.
“When I became the one to contact, my first case was a trial by fire,” he said.
A woman called and said her husband, a veteran of Korea and Vietnam, was being discharged from the VA hospital in Louisville, even after both his legs were amputated and his colon removed.
A short investigation revealed the man wasn’t disabled by VA standards, Jarrett said.
“It was so serious I filed a claim with the DAV and keyed in the congressman’s office to assist,” he said.
Jarrett said that case played out the best way it could, resulting in a change from no disability to 100 percent. The VA even expedited the request for disability assistance, which is rare.
“The only time they do that is if it involves extreme financial hardship or a chronic condition,” Jarrett said. “This case involved both.”
Too often, veterans who were injured during a war or conflict don’t file claims for many years, Jarrett said, which makes proving their eligibility more difficult.
“The time between their service and now makes it very problematic for us to help them,” he said, but added that some specific illnesses, such as Type II diabetes and certain cancers, are easier to prove.
“Generally, the smooth rides I see is when they have something the VA identifies as presumptive.”
While there are good stories, for every person he’s able to help or even file a claim for, there are many more Jarrett has to turn away.
“When I did that [first case] I became a miracle worker,” he said. But there are many issues he can’t even touch. “There have been veterans told that there’s very little I can do for them. They expect me to do it and I can’t.”
Jarrett said he deals specifically with issues of veterans’ disability and the VA, and sometimes people don’t understand that. Sometimes they go to other organizations hurt or angry.
“I’ve helped someone and the word spreads,” he said. “They say to call Dave and he’ll fix it, but sometimes I can’t fix it. Each case is different, and I always try to be honest.
“There are certain limits I have,” he continued, explaining that questions about grave markers or medical complaints with the VA aren’t covered. “There’s nothing I can do about that. The questions and problems presented to me are multitudinal.”
He suggests that veterans who need assistance call the DAV National Service Office in Louisville at (502) 566-4482 — it has access to more resources than Jarrett does.
“For every veteran I can do something for, there are probably another six I can’t because their questions don’t fall under my jurisdiction,” he said.
One hazard of the job, Jarrett said, is not being able to give any additional help.
“One of the unfortunate parts of being a DAV state service officer is watching fellow disabled veterans succumb to their service-connected medical problems,” he said. “A lot of guys I’ve helped at the DAV are no longer here.”
Jarrett lives with metal hips and most of his intestines are missing because of an illness he contracted in Vietnam. But he said he wouldn’t change a thing.
“I didn’t take a bullet, I succumbed to a disease that wasn’t even Agent Orange-related,” he said. “I don’t carry a grudge. I did my duty and I’d do it all over again.”
Before working to get other soldiers the benefits they deserve, Jarrett had a long and storied career. An Elizabethtown native, he graduated from the U.S. Naval Academy in 1969. He served in Vietnam as a naval adviser and operations officer, and in the National Oceanic and Atmospheric Administration Officer Corp.
After leaving the military, he worked as a hydrofoil instructor and 747 flight crew instructor for Boeing Co. in Seattle. After retiring in 1999, he returned to Hardin County and became active in the community — a result of his disposition, Jarrett said.
“Part of my makeup is that I like to help people,” he said. “Underlying each one of these veterans is a story, and some of them are fairly traumatic.”
Jarrett said his initial desire to take the position he now holds was to make sure veterans receive everything they deserve.
“I felt even though I had a favorable process, I knew a lot of veterans didn’t,” he said. “I’m very passionate about this. Even though the deaths of war are a tragedy, even more of a tragedy than that are those who have to live beyond that experience that occurred while they were in service.”
http://www.newsenterpriseonline.com/articles/2007/03/25/news/news02.txt
A LOT TO PROVE: As a service officer for the disabled, Dave Jarrett helps hurting vets make their cases
By C.J. GREGORY
Saturday, March 24, 2007 8:09 PM CDT
ELIZABETHTOWN — In taking the job as state service officer for Disabled American Veterans, Dave Jarrett said he didn’t fully understand what the job would entail. He thought it would be a simple matter of getting the right forms to the right veterans, but it’s turned out to be much more.
“I thought it was going to be a cake walk, because my process was very easy,” said Jarrett, who personally has been through the steps of filing a claim with the Department of Veterans Affairs. “But I’ve gone from simply doing paperwork to being a cold case investigator. I’ve got to work with the veteran to go back and get things.”
Jarrett works to get veterans the disability benefits for which they’re eligible. But determining that eligibility is the most difficult part of his job.
A veteran has to satisfy two main conditions before a claim can be filed, Jarrett said. The injury or condition has to have occurred while in the military, and a determination must be made that the injury is causing ongoing problems.
“Proving something happened in the military is very, very hard to do,” Jarrett said.
Often, one piece of documentation usually can clear matters up very easily.
“The most important document they can have is their DD2-14,” he said. “It will have medals, rank and job codes. You can get a fairly good history from that.”
More often than not, obtaining that all-important piece of paper is impossible. In way too many instances — too many to count — none of a veteran’s papers exist anymore, Jarrett said.
“I find with most veterans, putting together the story on something is very hard,” he said. “You wouldn’t believe the number of veterans whose records were destroyed in a fire” in St. Louis.
For many of the people he sees, most of whom are veterans of the Korean War and earlier conflicts, even their backup records are gone.
“In addition, there was a fire at the National Archives that also destroyed records,” he said.
Occasionally, he’ll be contacted with a story that just doesn’t seem possible, Jarrett said.
“When I became the one to contact, my first case was a trial by fire,” he said.
A woman called and said her husband, a veteran of Korea and Vietnam, was being discharged from the VA hospital in Louisville, even after both his legs were amputated and his colon removed.
A short investigation revealed the man wasn’t disabled by VA standards, Jarrett said.
“It was so serious I filed a claim with the DAV and keyed in the congressman’s office to assist,” he said.
Jarrett said that case played out the best way it could, resulting in a change from no disability to 100 percent. The VA even expedited the request for disability assistance, which is rare.
“The only time they do that is if it involves extreme financial hardship or a chronic condition,” Jarrett said. “This case involved both.”
Too often, veterans who were injured during a war or conflict don’t file claims for many years, Jarrett said, which makes proving their eligibility more difficult.
“The time between their service and now makes it very problematic for us to help them,” he said, but added that some specific illnesses, such as Type II diabetes and certain cancers, are easier to prove.
“Generally, the smooth rides I see is when they have something the VA identifies as presumptive.”
While there are good stories, for every person he’s able to help or even file a claim for, there are many more Jarrett has to turn away.
“When I did that [first case] I became a miracle worker,” he said. But there are many issues he can’t even touch. “There have been veterans told that there’s very little I can do for them. They expect me to do it and I can’t.”
Jarrett said he deals specifically with issues of veterans’ disability and the VA, and sometimes people don’t understand that. Sometimes they go to other organizations hurt or angry.
“I’ve helped someone and the word spreads,” he said. “They say to call Dave and he’ll fix it, but sometimes I can’t fix it. Each case is different, and I always try to be honest.
“There are certain limits I have,” he continued, explaining that questions about grave markers or medical complaints with the VA aren’t covered. “There’s nothing I can do about that. The questions and problems presented to me are multitudinal.”
He suggests that veterans who need assistance call the DAV National Service Office in Louisville at (502) 566-4482 — it has access to more resources than Jarrett does.
“For every veteran I can do something for, there are probably another six I can’t because their questions don’t fall under my jurisdiction,” he said.
One hazard of the job, Jarrett said, is not being able to give any additional help.
“One of the unfortunate parts of being a DAV state service officer is watching fellow disabled veterans succumb to their service-connected medical problems,” he said. “A lot of guys I’ve helped at the DAV are no longer here.”
Jarrett lives with metal hips and most of his intestines are missing because of an illness he contracted in Vietnam. But he said he wouldn’t change a thing.
“I didn’t take a bullet, I succumbed to a disease that wasn’t even Agent Orange-related,” he said. “I don’t carry a grudge. I did my duty and I’d do it all over again.”
Before working to get other soldiers the benefits they deserve, Jarrett had a long and storied career. An Elizabethtown native, he graduated from the U.S. Naval Academy in 1969. He served in Vietnam as a naval adviser and operations officer, and in the National Oceanic and Atmospheric Administration Officer Corp.
After leaving the military, he worked as a hydrofoil instructor and 747 flight crew instructor for Boeing Co. in Seattle. After retiring in 1999, he returned to Hardin County and became active in the community — a result of his disposition, Jarrett said.
“Part of my makeup is that I like to help people,” he said. “Underlying each one of these veterans is a story, and some of them are fairly traumatic.”
Jarrett said his initial desire to take the position he now holds was to make sure veterans receive everything they deserve.
“I felt even though I had a favorable process, I knew a lot of veterans didn’t,” he said. “I’m very passionate about this. Even though the deaths of war are a tragedy, even more of a tragedy than that are those who have to live beyond that experience that occurred while they were in service.”
5 more questions on Freight Brokering
What is the difference between a Freight Broker and an Agent?
A Broker owns his/her own company and must obtain all of his/her own legal documents to get started.
An Agent works for an established Broker under the Broker's legal documents. It is typically an all-commission position
What do I need to get started as a freight broker or a freight broker agent?
If you want to become a Broker (start your own company), you will need a computer, telephone, and fax machine. In addition, you will need to obtain the 3 legal documents listed below:
▪ Broker's Authority: through the FMCSA (Federal Motor Carriers Safety Administration) - $300. We teach our Freight Broker Training students to properly fill out the OP-1 and file for your authority.
▪ Surety Bond or Trust Fund: obtained from a local bank or bonding company. Costs vary depending on your personal credit history. For as little as $550 per year to as high as a one-time fee of $10,000. Works much like a regular insurance policy. The form to be filed is either the BMC 84 or 85 depending on whether you obtain a bond or trust.
▪ Processing Agent: Approximately $50 so that in case you ever have a lawsuit filed against you, a lawyer from that state will call and inform you of the claim. The form to be filed is the BOC-3.
If you want to become an Agent, you will only need a computer, phone, and fax machine.
Can a freight broker successfully work from home?
YES! It is a great place to start your small business and will keep your expenses down until you have enough financial resources to open up an office.
How long will it take for my business to become profitable?
This is a relationship business and relationships take time to develop. Typically it will take 2-6 months to show a profit, but it has been accomplished in less time and in more time. You can generate revenue as soon as you become licensed. Your success depends on many factors, including your level of determination your attention to detail, and your genuine desire to help your CUSTOMERS succeed..
Does a brokerage company carry cargo and liability insurance to protect its clients' interests?
By law, a broker is not required to carry cargo or liability insurance.
A Broker owns his/her own company and must obtain all of his/her own legal documents to get started.
An Agent works for an established Broker under the Broker's legal documents. It is typically an all-commission position
What do I need to get started as a freight broker or a freight broker agent?
If you want to become a Broker (start your own company), you will need a computer, telephone, and fax machine. In addition, you will need to obtain the 3 legal documents listed below:
▪ Broker's Authority: through the FMCSA (Federal Motor Carriers Safety Administration) - $300. We teach our Freight Broker Training students to properly fill out the OP-1 and file for your authority.
▪ Surety Bond or Trust Fund: obtained from a local bank or bonding company. Costs vary depending on your personal credit history. For as little as $550 per year to as high as a one-time fee of $10,000. Works much like a regular insurance policy. The form to be filed is either the BMC 84 or 85 depending on whether you obtain a bond or trust.
▪ Processing Agent: Approximately $50 so that in case you ever have a lawsuit filed against you, a lawyer from that state will call and inform you of the claim. The form to be filed is the BOC-3.
If you want to become an Agent, you will only need a computer, phone, and fax machine.
Can a freight broker successfully work from home?
YES! It is a great place to start your small business and will keep your expenses down until you have enough financial resources to open up an office.
How long will it take for my business to become profitable?
This is a relationship business and relationships take time to develop. Typically it will take 2-6 months to show a profit, but it has been accomplished in less time and in more time. You can generate revenue as soon as you become licensed. Your success depends on many factors, including your level of determination your attention to detail, and your genuine desire to help your CUSTOMERS succeed..
Does a brokerage company carry cargo and liability insurance to protect its clients' interests?
By law, a broker is not required to carry cargo or liability insurance.
4 Frequently Asked Questions for Freight Brokers
What is a Property Broker?
A Property Broker is the term established by the Federal Motor Carrier Safety Administration (FMCSA), a division of the United States Department of Transportation, to describe licensed individuals, or companies, who help make a shipper and an authorized carrier successful in the transporting of freight, commonly called a freight broker
What are the requirements of an FMCSA Property Broker?
Each company or entity is required to obtain a "surety bond" with an approved bank or insurance company, and maintain "process service" agents in all 48 contiguous states.
What is a surety bond?
Each company or entity must prove they are capable of paying the various truck lines, airlines, railroads, or any other entity being used by the broker.
An individual's credit, and/or financial strength, is investigated with extreme thoroughness. Only then is a "bond" issued.
Accordingly, if for some reason the broker fails to pay the transportation company, the bonding company must pay. As you can imagine, the bonding company is very careful about who they insure.
Is freight brokering a growing sector of the transportation industry?
As of this writing, there are over 14,000 licensed transportation brokers in the United States of which only 50% are operating in a full time manner. Freight Brokers accounted for over 10%, around $60 billion, in revenues from the Transportation Industry. In a recent article, the Wall Street Journal reported "transportation brokerage, and logistics" as the fastest growing segment of the transportation industry.
Read more FAQs tomorrow.
A Property Broker is the term established by the Federal Motor Carrier Safety Administration (FMCSA), a division of the United States Department of Transportation, to describe licensed individuals, or companies, who help make a shipper and an authorized carrier successful in the transporting of freight, commonly called a freight broker
What are the requirements of an FMCSA Property Broker?
Each company or entity is required to obtain a "surety bond" with an approved bank or insurance company, and maintain "process service" agents in all 48 contiguous states.
What is a surety bond?
Each company or entity must prove they are capable of paying the various truck lines, airlines, railroads, or any other entity being used by the broker.
An individual's credit, and/or financial strength, is investigated with extreme thoroughness. Only then is a "bond" issued.
Accordingly, if for some reason the broker fails to pay the transportation company, the bonding company must pay. As you can imagine, the bonding company is very careful about who they insure.
Is freight brokering a growing sector of the transportation industry?
As of this writing, there are over 14,000 licensed transportation brokers in the United States of which only 50% are operating in a full time manner. Freight Brokers accounted for over 10%, around $60 billion, in revenues from the Transportation Industry. In a recent article, the Wall Street Journal reported "transportation brokerage, and logistics" as the fastest growing segment of the transportation industry.
Read more FAQs tomorrow.
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