Freight Broker Basics
What is a freight broker?
A freight broker coordinates the transportation of goods and acts as a mediator between shippers and motor carriers
What are 3 standard tool requirements to begin a freight broker/agent career?
High-Speed Internet
Email Service
Unlimited Telephone Service
What does "BOL" Stand for?
Bill of Lading
What is a fuel surcharge?
A fuel surcharge is intended to compensate carriers and offset the rapidly rising cost of fuel
Everything is negotiable. T/F
True
What is a freight agent?
Freight agents arrange for the transportation of goods as well but work under the legal authority of a licensed property broker.
Since October 2013 the FMCSA requires brokers to have a surety bond or trust fund in the amount of ....?
$75,0000
What is deadhead miles?
Dead-head miles are the empty, unpaid miles a carrier must travel to pick up their next load.
How is a fuel surcharged based?
A fuel surcharge is based on the national average retail price of diesel fuel for a particular region where the load originates.
What is a freight proposal?
A proposal is a summary of what you have to offer and why the prospective customer should use your service.
What does "CFR" stand for? What is its definition?
The Code of Federal Regulations is a compilation of books published by the Federal government that contain the current regulations enforced by various Federal agencies.
Most internet load boards range between $_ and $_ monthly.
$30-$50
Why would you need to pay a carrier for dead head miles?
Non Use - When you dispatch a truck and something changes in the load plan.
Time Sensitive - The load must go and your customer is willing to pay extra.
Specialized - If no other truck is available or equipped to haul a specialized load, you may have to offer dead-head mileage compensation to close the deal.
Where do you list the line haul rate, paid miles, tarp pay, extra stops, and fuel surcharge to give to the carrier?
The rate confirmation sheet
Name 3 benefits of negotiating a prepaid method.
What are the 3-freight broker authority requirements?
Contingent Cargo policies can be as little as $__ per year
$1000
If the line haul rate pays the carrier $2,500 on a 1,500 mile trip. How much does the driver earn per mile?
$1.67 per mile
The broker is supposed to keep a portion of the surcharge? T/F
False
On a phone call, you will want to collect information about the shipper/manufacturer requirements. There are seven basic questions to ask. Name at least four.
What is a process agent?
A Process Agent is a representative upon whom court papers may be served in any proceeding (court action, suit, etc.) brought against a motor carrier, broker, or freight forwarder.
Contingent Cargo policies can be as high as $___per month
What carrier expenses play a critical role in line haul rates that a freight broker/agent will submit to the customer (Name 2).
As a result, carrier expenses such as fuel mileage, driver wages, IFTA (International Fuel Tax Agreement) fuel taxes and toll roads play a critical role in the line haul rates you submit to your customers.
Your base fuel price should be between $__ and $___ (no matter what the current price of fuel is)
$1.10 and $1.20
Your customer should know if the load needs permits. A load will need individual state permits if (name 1 reason)