Becoming a broker

Get ready to put up a $75,000 bond this summer.

 

It ain't that easy. You need contacts, capital , and charisma.
With money being tighter than usual the last few years,some truckers are willing to cut their profit margin to keep the wheels turning. Shippers are looking to save every penny they can. Putting the 2 together can be a chore, but profitable. Some folks have decided they are up to the task, and are calling themselves brokers. Some are drivers tired of being behind the wheel, some are money people who see a chance to turn a quick buck, often at the truckers expense.They do not know a fifth wheel from a load lock, but have a " business model " and a ' five year plan ' straight from a business school.
These things go in cycles, and we seem to in an upswing in the number of load getters.

 

The downswing is coming... Don't worry.

 

Sounds silly but they do not have the budget to implement this. It is more than just the bond and the date is 6-months away and we still don't even have an outline of how all this is going to work. We haven't heard anything on this.

I can see it getting pushed a year or more.

 

It will be interesting to see how it plays out over the next few years. I predict your basic phone jockey type junior broker will soon be replaced by software. But I don't consider them real brokers anyways.

As far as real brokers who develop a stong relationship with their shippers and recievers, understand their needs, and can keep up with the rules and reg's and understand the trucking side as well. The future's probably never been brighter. With ever increasing regulations, the more shippers are going to be relying on high quality brokers and carriers who can step up and get it done. Well, that's the way I hope it goes down anyways. Got a crystal ball ?

 

If I had that I'd have just become the richest man on the face of the earth because I would've made a $500,000 bet on the Seahawks winning... What? The bookie doesn't get the money until I lose anyway.

 

Yes, there is money in becoming a broker or broker agent. With the bond increase coming, it may help to cut your teeth- and gain a book of business- by working for a broker agent, or becoming one yourself. It all depends on the amount of risk you want to take. Highest risk- pay the bond and get your own authority. More risk- become a broker agent. Less risk- work for a broker agent. If your entrepreneurial enough, organized and can get loads, then there is money to be made. Look for the right company with the right back-office support.

 

There are plenty of brokers that make very good money doing what they do. I would suggest going to work for a 3PL though before trying to start your own. There is a lot to learn about the trade before diving in and starting your own operation. Better to work with a reputable company that has done this for a while than to strike out on your own never having done it. Just my opinion though.

 

With ever-increasing regulations, that always = more cost.
When the cost of something goes up, there is less demand. Then there is less freight to be shipped.
I bet that in 95% of situations, the bottom line is who can get it done cheaper.

And markets always come to an equilibrium. Rates might go up or down temporarily, but they will always adjust to normalcy.