Freight Brokerage Monthly Operating Costs?

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

  1. Renegade92

    Renegade92 Light Load Member

    Oct 2, 2019
    I currently have a full time job, but am wanting to become self employed. I hate being dependent on others for the opportunity to earn; at any point in time, I can be fired, laid off, etc. I want to be independent in that regard.

    I have a background in logistics, which I would like to put to use.

    In the past, I considered starting a trucking business, but was turned away by how asset heavy that kind of operation is, along with how heavy the monthly operating costs would be too. In other words, the profit margin that I projected, wasn't generous enough for me to be comfortable with.

    In the past, I also considered starting a full service dispatching service for Truckers. But, after hearing input from actual Owner Operators, I determined that the market just wasn't really there.

    The only possibility left, that I can think of, is a freight brokerage.

    To all the Freight Brokers out there, what are the typical monthly operating costs for a freight brokerage? If you would, please itemize, by type along with amount.
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  3. JimmyTwoTimes

    JimmyTwoTimes Light Load Member

    Aug 23, 2019
    ####, you swing by the TRF for a friendly read, only to get hit with homework assignments.

    Would you like anything else? Maybe my 2023 budget and complete OPEX broken up by line for the TTM? Do you need a vendor list as well?
  4. REO6205

    REO6205 Trucker Forum STAFF Staff Member

    Feb 15, 2014
    Quit griping and help the guy out. A list of your best customers and what you charge should be enough.
    And let him in your office so he can job shadow you for a month or so. ;)
  5. D.Tibbitt

    D.Tibbitt Road Train Member

    Apr 26, 2013
    Gettin' down westbound
    Id imagine its just like trucking. Depends on the operation. Probably a hell of a lot easier to buy a truck and trailer and go work off the load boards than it is to start a freight brokerage from scratch with no experience and nobody that you know trying to move loads !

    Probably the best way to start would be to know people who need help moving #### then get ur broker authority...i dont know anything about anything tho. Just my worthless 2 cents
  6. Pepper24

    Pepper24 Road Train Member

    Apr 19, 2016
    Good luck.Starting a freight brokerage business isn’t easy.Any companies you want to get freight from are going to want to see your carrier base and starting out its going to be small to none so starting out your going to have to pay more of the percentage to attract carriers .And a lot of carriers are going to think twice about working with someone with no track record.
    Rideandrepair and Renegade92 Thank this.
  7. DUNE-T

    DUNE-T Road Train Member

    May 10, 2015
    Detroit, MI
    Usually people work for a brokerage for some time, learn everything and then open up their own (if they can get around the "non-compete" clause)
    Rideandrepair, jbatmick and Renegade92 Thank this.
  8. Renegade92

    Renegade92 Light Load Member

    Oct 2, 2019

    LOL. I'll take it if you are willing, but, what I really had in mind was just a simple list of the main monthly expenses, just to give me a rough understanding of funding a brokerage.

    For example, if I were an OO, my monthly expenses would be: fuel, insurance, maintenance, etc.

    Anything you are willing to share would be appreciated!
    Lite bug and Rideandrepair Thank this.
  9. JimmyTwoTimes

    JimmyTwoTimes Light Load Member

    Aug 23, 2019
    Here's some of the items to think of, sorry for the random capitalizations, I'm multitasking like crazy today.

    Load board(s)
    Surety Bond
    Contingent Cargo
    Carrier vetting platform (RMIS, My Carrier Packets, Carrier 411, etc)
    Geofence tracking (Macropoint or Fourkites)
    Employee benefits
    Employee Payroll
    Office equipment (computers, desks, phones, printers)
    Travel & Entertainment (e.g. flying to Chicago to meet with a customer and then take them to dinner)
    Software liscenses (Outlook, phone system, etc)
    Office Space (Rent)
    Janitorial services

    Some of the above won't be needed initially, but could end up being a cost down the line.
  10. John Joel Glanton

    John Joel Glanton Light Load Member

    Sep 22, 2021
    Nice list. I would like Macropoint for tracking but it’s a bit expensive for me at the moment. Can I get by without it for now? Do a lot of shippers require load tracking?
    Lite bug, Rideandrepair and Renegade92 Thank this.
  11. Renegade92

    Renegade92 Light Load Member

    Oct 2, 2019


    Typically, how much is a surety bond?
    And what is contingent cargo?
    Also, is it required that I make "fast pay" available to my couriers, or is that at my discretion?

    Lastly, what recourse do I have if a shipper doesn't pay me?
    Rideandrepair Thanks this.
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