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11 tips for freight brokerage success

 The process of moving freight sometimes requires the use of a freight broker. Technology is making it easier for brokers to enter the space, but there are some basics you need to know if you wish to be successful.
The process of moving freight sometimes requires the use of a freight broker. Technology is making it easier for brokers to enter the space, but there are some basics you need to know if you wish to be successful.

If it seems that freight brokerage – both digital and traditional services – are popping up on a daily basis, it could be because they are, or it at least it seems that way. Digital freight matchers (DFMs) include familiar names such as J.B. Hunt 360, Convoy, CargoMatic, Haulfox, Transfix, HaulHound and Freight Rover. Most recently, Uber made major headlines as it entered the space.

The reason DFMs have become so popular is market opportunity and technological advances. Plus, there are few barriers to entry with relatively few capital risks – making it an attractive place for entrepreneurs to get their start. When there is over $700 billion worth of an industry pie available (and an estimated $50B in brokerage commissions every year), it’s natural that everyone wants a piece of that pie. Until the last few years, freight brokering was handled by someone sitting in an office manually matching trucks with loads. Technology has changed that. Now, with a few clicks of the mouse or taps of the finger, any trucker or carrier can instantly see available loads along their route. That lowered bar to inclusion has resulted in an explosion in the number of firms entering the business.


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Brian Straight

Brian Straight covers general transportation news and leads the editorial team as Managing Editor. A journalism graduate of the University of Rhode Island, he has covered everything from a presidential election, to professional sports and Little League baseball, and for more than 10 years has covered trucking and logistics. Before joining FreightWaves, he was previously responsible for the editorial quality and production of Fleet Owner magazine and fleetowner.com. Brian lives in Connecticut with his wife and two kids and spends his time coaching his son’s baseball team, golfing with his daughter, and pursuing his never-ending quest to become a professional bowler.

One Comment

  1. We have 3 offices and 11 brokers. We use the Ascend TMS and it’s awesome. works great and helped us be more profitable. We do more loads today with less people on staff than we did 2 years ago. I would guess Ascend does the work of 2 or 3 people for us.

  2. In our business, we hear this question a lot. And the answer is easy: business complexity and market size. Perhaps the same question about business software for other industries has the same answer, but I will attempt to shed some light for the trucking business looking to purchase new software as to why the cost of <a href="http://www.exspeedite.com/blog/exspeedite-introduces-repair-maintenance-inspection-reporting-feature/">Trucking Software</a> seems high.

  3. Great tips!! I appreciate you time to post them here. Hopefully freight brokerage professionals will get benefits from following your tips. Thanks

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