Freight Brokers And Broker Agents

A freight agent broker is fully self-employed and is required to obtain his or her broker authority. A fully self-employed freight agent broker will do his or her own invoicing to customers and will pay the motor carriers so essentially, the freight broker is running a complete business. A broker agent works for another freight agent broker and does not need to obtain a broker authority. The agent works under the authority of his or her freight agent broker and is not responsible for invoicing or paying the trucks. First, a fully self-employed freight agent broker is required to get their broker authority but they retain 100% of the profit on each load. Furthermore, the freight agent broker is totally responsible for invoicing the customer and making collections as well as paying the motor carriers. Having sufficient capital and good cash management skills are an absolute necessity and since time is required to run an entire business, the freight agent broker has relatively less time to search for new customers and find trucks. Second, a broker agent is not required to get his or her broker authority and, therefore, this option is less costly but the broker agent splits his or her commission on each load with the freight agent broker. Most of the agent's time is spent searching for new customers and finding new trucks. Third, most freight brokers are seeking experienced agents but there are a few who will accept new inexperienced agents but these freight brokers are far and few in between. If an agent is new or inexperienced, the freight agent broker normally does not want to spend a lot of time training or "hand-holding". Regardless of whether you work as a freight agent broker or broker agent, you may work out of your home and you will meet and work with customers and carriers over the entire country.