Freight Brokerage Monthly Operating Costs?

Discussion in 'Freight Broker Forum' started by Renegade92, Jan 7, 2023.

  1. Renegade92

    Renegade92 Light Load Member

    107
    112
    Oct 2, 2019
    Texas
    0

    I forgot to ask...what do you do these days? OO, broker, etc.?
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

    325
    767
    Aug 23, 2019
    0
    You can probably get away with manual tracking (calling drivers & dispatchers and asking for current location and ETA to shipper/receiver) in the beginning or with a smaller operation.

    And if you are asking do a lot of shippers require macroppoint or fourkites, some do but most don't. It just becomes a real return on investment at some point, as you don't need to manually track those shipments.
     
  4. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

    325
    767
    Aug 23, 2019
    0
    You need a $75,000 surety bond, not sure what the cost is off hand.

    Contingent cargo insurance is insurance that covers you if the carrier's insurance can't cover a claim.

    You don't need to do quick pay, but you do need to be able to pay your carriers quickly or they won't haul for you.

    If a shipper doesn't pay you, you need can turn them over to 3rd party collections and report the issue to Dun and Bradstreet. That being said, you are going to want to do a risk assessment before onboarding a customer as you are going to lose a ton of money if you can't collect payment.
     
  5. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

    325
    767
    Aug 23, 2019
    0
    I work at a pretty large ($500M+) freight brokerage.
     
  6. Renegade92

    Renegade92 Light Load Member

    107
    112
    Oct 2, 2019
    Texas
    0

    Is it your business?
     
  7. John Joel Glanton

    John Joel Glanton Light Load Member

    170
    215
    Sep 22, 2021
    Texas
    0
    My bond was $3,320. Your credit is a factor as well as industry experience. Contingent cargo insurance is not legally required but apparently some shippers want you to have it. I guess it covers the freight if something happens and for some reason the carrier's insurance doesn't cover it. Many say you don't need it but I figured I'd just get it if it helps me look more legitimate in the eyes of shippers. Best rate I found was $800 for the year $100k policy. I think TruckStop sells it on a per load basis if you want to go that route. Can't answer your last question but I'm curious as well. :)
     
    Rideandrepair and Renegade92 Thank this.
  8. Renegade92

    Renegade92 Light Load Member

    107
    112
    Oct 2, 2019
    Texas
    0

    "My bond was $3,320."...that is for the entire year?
     
    Lite bug and Rideandrepair Thank this.
  9. Renegade92

    Renegade92 Light Load Member

    107
    112
    Oct 2, 2019
    Texas
    0

    What do you do...strictly brokerage, or OO too?
     
    Rideandrepair Thanks this.
  10. John Joel Glanton

    John Joel Glanton Light Load Member

    170
    215
    Sep 22, 2021
    Texas
    0
    Yes that's for the year. I'm paying $830 quarterly. I'd save a few bucks if I paid in full. Trying to hold onto as much cash as possible. I'm a company driver at the moment. Putting in my two weeks notice to launch the brokerage in February. Wish me luck.
     
    Rideandrepair Thanks this.
  11. Renegade92

    Renegade92 Light Load Member

    107
    112
    Oct 2, 2019
    Texas
    0

    $3,320 for an entire year, sounds pretty good when you compare it to what an OO has to pay for a month.

    What part of TX are you from? I'm from TX too. I wanted to message you privately, but that wasn't an option.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.