One of the biggest difficulties that drivers face when they’re on the road for extended periods is keeping on top of finances.  Drivers have to watch their spending on the road on meals and other necessities that pop up. While out on the road, bills still pile up at home that need to be paid like rent/mortgage, utilities, phone, and vehicle loan payments.

Banking at Your Fingertips

Before the internet, it was more difficult for drivers to stay on top of finances and they had to rely on finding a branch of their bank wherever the road had taken them or did their banking over the phone.  Fortunately, most banks now offer their own secure mobile apps so you can connect and view your account or do transactions from anywhere. You can do things like pay bills, transfer money, and track your balance and payments directly with your bank.

Other useful apps for drivers include:

Acorns 

Acorns makes it easy to save money for a rainy day.  Acorns can transfer money automatically from your bank account to your Acorns account so you don’t have to remember to do it.  It’s round-up feature automatically rounds up the change from every transaction and deposits it into your Acorns account for painless savings.

Mint

Mint is a popular app that allows you to track your expenses in all of your accounts―checking, savings, credit card, and investment accounts.  Mint also lets you set financial goals and shows you a path to get there through budgeting.

Concur

Concur tracks travel and business expenses and capture receipts on your phone’s camera.

Cutting Expenses

If you’re going to stick to a budget, you’ve got to cut unnecessary spending.  With a little planning ahead, you can rein in your spending and stay on track.

 Food

Food is one of the ways that drivers overspend the most.  Plan your meals ahead of time. If you buy food from a grocery store and keep it in your truck, you can save money and have healthier food options that may be missing at truck stops and fast food restaurants.  A small fridge and microwave or hot plate for the cab of your truck will help you save on food costs. If you’re going to be cooking or storing food in your cab, make sure you have cleaning supplies to keep everything sanitary and don’t forget the storage containers!

Fees

If you set up automatic payments for all your bills with your lenders, phone company, and utility companies, you can avoid accumulating fees for late payments.  However, it’s important to carefully monitor these transactions for accuracy and to also make sure you always have enough money in the account to cover your bills as overdraft fees from banks can be hefty.  

Avoid fees from traffic tickets.  Have all the right permits if you’re hauling hazmat, don’t speed, keep your truck’s weight under the limit, and make sure your elogs are always accurate.

Use free wifi whenever you can.  Unless you have unlimited data, you’re going to use up those data minutes fast and be charged fees for additional data.    

Your Truck

Don’t skip the preventative maintenance.  Tire checks, oil and other fluid changes, and general maintenance will save you from costly breakdowns and repairs. 

Stay in Shape

 Save money by keeping fit.  Obesity is a risk for drivers who spend the majority of their time sedentary behind the wheel.  By eating a healthy diet and getting regular brisk exercise, you can save a lot of money on medical bills.

Owner/Operators

Owner/operators need to track their expenses carefully.  Truck expenses include truck payments, fuel charges, repairs, and maintenance.  Keep your business and personal accounts separate by using two different bank accounts and keep a close eye on what you’re writing checks for and inspect canceled checks so you know they were processed correctly. 

Taxes

Make sure your taxes are done correctly.  Keep all documentation and receipts and go see a tax professional, preferably one that specializes in truck drivers’ taxes.  It’ll be worth it. 

By tracking spending, sticking to a budget and lowering expenses, you can maximize your earnings and achieve financial independence.  A career in trucking can be a lucrative one but not if you’re spending all your money on the road.  

Direct Freight Services is a web-based load board that allows users to search for loads or post trucks.  It has many helpful features like full credit reports, load filtering, payment expectations, and broker authority information.  Whether accessed online or now through our easy-to-use Direct Freight app, Direct Freight helps you find the loads that will earn you the most money. Go to DirectFreight.com and start searching today!

Sources:

https://www.acorns.com

https://www.mint.com

https://www.concur.com/app-center/listings/550353cc99066b13221bcded

Driving a truck is a popular occupation for many reasons.  Some come for the good pay with job security and high demand for drivers.  Others choose the driver’s life because the road calls to them.  The vastness and the ability to see this beautiful country of ours every single day draws them in.  

Whether driving long hauls or short routes, drivers get to see it all.  Here are some of the most scenic routes for truckers:

1. US Route 89

This road stretches from Canada to Mexico, taking drivers through Montana, Wyoming, Idaho, Utah, and Arizona and through an abundance of national parks, monuments, and heritage areas.  Taking this route will bring you across the Rockies, through the wild Yellowstone National Park, and the awe-inspiring Grand Canyon.

2. Pacific Coast Highway

Running along the coast from Northern California to Southern California, the Pacific Coast Highway shows some of the best views that California has to offer.  If you’re looking for an interesting place to stop, this route has Venice Beach, the Queen Mary, the Bixby Bridge, Hearst Castle, the Golden Gate Bridge, and Glass Beach to name a few.  Your big rig may not fit through a redwood tree but a drive along the Pacific Coast Highway is a must-drive, especially if you’ve got time for a little fun.  

3. US Route 2

If your route takes you into NH in the fall, you’re in for a treat.  New England is awash in reds, yellows, and oranges as the trees burst with vibrant colors.  US Route 2 goes from Northern Maine through the White Mountain National Forest in NH, home to Mount Washington which boasts the second coldest temperature ever recorded anywhere in the world, and through quaint towns in Vermont.  After popping up through Canada, Route 2 picks up in the U.S. again in the Upper Peninsula of Michigan and continues across the upper U.S. through Montana and ending in Washington.    

4. Pikes Peak Ocean to Ocean Highway

Also known as the Appian Way of America, the PP-OO highway is a historical gem.  It was built before the national highway system was put in to bypass small towns.  This road takes you through farmlands, hills, and nearly-forgotten towns.

5. Interstate 77

This route travels from Cleveland, Ohio to Charlotte, South Carolina.  It takes you through the dramatic Blue Ridge Mountains and into downtown Charlotte where you can take a break and check out the NASCAR Hall of Fame.

6. Scenic Byway 163

Traveling along this scenic route through Monument Valley on the Utah and Arizona border, you’ll feel like you’ve been transported to the set of a movie about the Old West with a huge rock formation backdrop.  You’ll definitely want to stop for photos on this one.

7. The Swiss Alps of Texas

Yes, The Swiss Alps.  Of Texas. If you can squeeze part of this loop that spans Highways 337, 187, and 470 into your route, you will be rewarded with picturesque hills and deep canyons and rivers.  It may not be exactly like the real Swiss Alps but it’s a beautiful drive just the same.

Incorporating a scenic route into your drive can make any ride more enjoyable and can break the monotony that sometimes comes with driving a regular route.  If you’re looking for loads that may take you along some of the more scenic routes of the U.S., Direct Freight Services can help. Our full-service load board can help you find loads all over the country and has numerous useful features such as full credit reports, credit scores, load filtering, payment expectations, and broker authority information as well.  Check out the Direct Freight website to find out more. 

Sources:

https://usroute89.com

https://en.wikipedia.org/wiki/U.S._Route_101

https://www.fhwa.dot.gov/infrastructure/us2.cfm

https://www.wmur.com/article/mt-washington-tied-for-second-coldest-place-on-earth-saturday/14769919

http://www.ppoo.org

https://utah.com/scenic-drive/monument-valley

https://www.texasoutside.com/texas-scenic-drives/

Not all loads are profitable.  Fuel costs, competition, and freight type can all impact the shipment rate.  If you’re not careful, you could end up in the red, the load costing more than it’s bringing in.  How do you know? How do you pick a high-quality load that’s going to be the most profitable?

The value of a load is what it pays.  However, there’s so much more to take into consideration than how much it’s going to pay.  A high-quality load is one that not only pays well but isn’t going to have added costs, added work, or increased risk.  By looking at the whole picture, you can better judge the quality of the load before committing to it.  

Is a Load High-Quality?

To understand the quality of the load, there are several questions that should be asked.

What is the pay? 

 Simple and straightforward.  Look at how much the load pays per mile.

Does the freight lane make sense for me?  

The freight lane is the freight going into and coming out of an area.  If it is balanced, it means there is an equal amount of freight going in and coming out.  Freight brokers will aim for a balanced freight lane because it means they’ll be able to eliminate deadhead miles and truckers should look at this too.

Is it a good rate for that particular lane?  

Remember, if it seems too good to be true, it probably is.  Do some comparison shopping.

What is the competition like in this lane?

Load boards can tell you the number of trucks in the area.  If there is little competition, you’ll be able to negotiate a better rate.

What are fuel costs?

If fuel costs are high, there’s less profit and you’ll need to demand higher pay.

What is the load weight?

Heavier loads eat up more fuel.

Is there extra work involved?

Sometimes loads require a lot more work than anticipated.  Tarping is a good example of this and in fact, it’s a deal-breaker for many truckers.  Tarping is when large, heavy tarp must be placed over a load on a flatbed truck. It’s hard work, and it’s dangerous, and most truckers hate doing it.  Shippers generally understand this and will add tarp pay so make sure if you take a job that involves tarping that they pay you for the extra work. (Sometimes shipping have machines that tarp the freight on the truck for you.  Use it. It’ll make the process much quicker and easier.)

Is the load dangerous?

Even under the best circumstances, some loads are downright dangerous such as steel coils.  Steel coils are extremely heavy rolls of steel that are held on a flatbed by chains. Some truckers won’t touch them because of the danger involved with transporting them.  

How to Get Higher-Quality Loads

There are some steps that can improve your chances of obtaining higher-quality loads that will bring in higher pay and improve your business.  

Know your own operating costs.  If you don’t, you could take on a load that will cost you money or one that is worth so little it’s not worth your time.  Knowing the minimum amount that you need to make a profit will give you more negotiating power for rates. Walk away from loads that don’t offer enough.

Look at every aspect of the trip.  Things like wait-times can eat into a trucker’s profits in a big way.  These wait-times usually occur during load pickups and drop-offs. When you’re paid by the mile and you’re not moving, you’re losing money.

Consider government contracts.  Sure, it’s hard work to get them and there’s a lot of competition, but they can pay really well.

Get endorsements.  Getting specialized training and license endorsements can bring in better loads.  Whenever there is special training required, there will be fewer qualified truckers to haul the load. Examples:  

• Liquid hauling.  Driving reefers, hauling liquids, requires added training and knowledge.  If the chemicals are hazardous such as gas or chemicals, a special hazmat certification is required.  
• Oversized loads.  These loads also have a special license and training as well.
• Driving specialty trucks.  Car carriers, dump trucks, mining trucks can all bring in higher pay.

Use a good load board. Load boards can help find quality loads in many ways.  They create a more balanced freight lane by cutting down on deadhead miles, find larger, established shippers who pay on time, show you the freight lanes you want to drive, and help you manage your operation.  Using a good load board can save a lot of time tracking down loads, making the whole process more efficient. After all, time is money and if you’re getting paid by the mile, you aren’t getting paid for looking for loads. 

Direct Freight Services is a web-based load board that allows users to search for loads or post trucks.  It has many helpful features like full credit reports, load filtering, payment expectations, and broker authority information.  Whether accessed online or now through our easy-to-use Direct Freight app, Direct Freight helps you find the right loads. Go to DirectFreight.com and start searching for those high-quality loads today!

In logistics, one thing is connected to the next.  You buy an item online and although it may seem like it miraculously appears on your doorstep a few days later, it actually goes through many coordinated steps to arrive there. 

A supply chain is just that―individual links that make up a long chain.  For example, you want to buy a dinosaur action figure from an online retailer who acquires them from China.  Before you’ve clicked the add to cart button, your dinosaur action figure has already begun its long journey.

Dinosaur Action Figure  Supply Chain

1. Raw materials are sent to a manufacturing plant in China via boat, plane, train, or truck.
2. Manufacturing plant molds plastic into the perfect dinosaur action figure.  
3. Manufacturing plant sorts and ships dinosaur action figure to a port via truck or plane.  
4. Shipments are loaded into shipping containers and loaded onto a ship bound for the U.S.
5. At the U.S. port, containers are off-loaded and wait for further transportation.  
6. Shipping container or its contents are loaded onto a truck,train or plane and sent to a warehouse.
7. You place your online order and the dinosaur action figure is on the move again.
8. At that warehouse, the freight is sorted and then loaded onto a truck to be sent to another warehouse.  This process could happen several times before the dinosaur action figure arrives at a retail outlet or distribution center for online orders. 
9. Distribution center uses 3PL to deliver your dinosaur action figure to your doorstep.  Hurray!

Of course, this is merely an example of the way a product could get to your front door and the journey is dependant on many things such as starting point and destination, location of the retailer, and the manner in which the shipper chooses to ship their freight.  You may order directly from a foreign company that uses 3PL to get the product to you. Or you could drive to a retailer and buy a product that was flown to the U.S. instead of being shipped by boat.  

The one thing all of these supply chains have in common is that they rely on trucks to move products.  Even if boats or planes are links in the chain, trucks are used to get freight to and from them. Even when trains are used for cross-country journeys instead of long-haul trucking, trucks are still needed to get freight to and from the trains.  

Whether trucks are big rigs or 3PL vans, they will remain the backbone of every supply chain around the world.  It’s why there’s such a high demand for truck drivers with no hint of slowing anytime soon.  

If you’re a trucker who’s interested in becoming one of those important links in the supply chain, a good load board like Direct Freight Services is a great place to start.  With helpful features like a mobile app, quick pay, deadhead miles, text alerts, and turn-by-turn routing, Direct Freight will help truckers find the loads they’re looking for.  Sign up today at Directfreight.com and see how Direct Freight can start working for you!

For anyone who ships freight, a good load board is the most essential tool in the shipper’s toolbox.  It not only allows loads to be posted and seen by many available carriers, but it also has features that help organize loads, track freight, and streamline the shipping process.

What is a Load Board?

A load board is an online system that allows shippers to post loads that need to be shipped and for truckers and carriers to find them.  Essentially, load boards match people with loads to ship with people who ship loads. Good load boards have useful features that make the entire shipping process move smoothly and allow the shipper to include relevant details about the shipment. This weeds out carriers that don’t meet the shipper’s needs or requirements and streamlines the process.

How a Load Board Can Help a Company Grow  

Load boards are much more than a handy tool.  Load boards can help companies that need to ship freight grow.  Even for shippers who have a loyal list of dependable carriers, load boards can be useful for finding a new carrier in a pinch if shipments fluctuate seasonally or business grows and the shipper finds he needs more carriers.  

They are also useful if the shipper needs to send freight to a new location that the current carrier cannot accommodate.  With a load board, anywhere a shipment needs to go, there will be a carrier that can take it there.

As a shipper who doesn’t use a load board but instead works directly with a trucking company to deliver goods, life is busy.  Taking the time to shop around for better rates is probably out of the question. Load boards can be competitive and can help shippers make new connections at competitive rates.  Using a load board allows shippers to expand shipments and expand the business.

It also gives the shipper the lowdown on a carrier’s licenses and whether or not a trucker has a good driving record.  In turn, the carrier can see if the shipper is reputable and pays carriers in a timely manner.

Load boards help shippers and carriers avoid deadhead miles so money is being earned on the return trip instead of paying for an empty truck.

Often, shippers use freight brokers as a middleman to facilitate shipping and negotiating while they spend more time running the business.  Of course, this comes with added cost. Others prefer a more hands-on approach to shipping and a load board that has an extensive database and useful tools can facilitate that.  

DirectFreight.com has everything shippers should be looking for in a load board.  With its clear-cut interface, customized features like important saved documents, email and text alerts, and a convenient new app for drivers, Direct Freight is the only load board you’ll ever need.  It not only provides current load and truck information, but it also makes your business more organized and professional. Check it out for yourself DirectFreight.com and watch your shipping company flourish!

For trucking companies, it’s not just a matter of booking as many loads as possible, it’s important to book as many high-quality loads as possible.  High-quality loads come from dependable shippers who have above-average margins, and pay in a timely manner.  A good load board is a useful tool to help keep your trucks rolling, but is the monthly subscription fee worth it?

Load boards can help you:

Get Clients

Using a load board can help you gain trusted clients that you can build long-term relationships with.  This allows you to cut out the middleman and not go through a freight broker, which will increase your margins.

Diversify

A wise investor diversifies his investments to be able to weather any negative periods.  The same approach should be applied to your trucking business. Don’t put all of your eggs in one basket.  If you get all your loads primarily from one source, you’ll be in trouble if that company has a problem.

Find a Trustworthy Broker

As part of their diversification, many companies will work directly with shippers and with freight brokers.  It’s important to find one that is reliable and will earn you money.  To learn more about how to find the right freight broker, go here.

Eliminate Deadhead Miles

If you’re going to be bringing home an empty truck, be sure to include those costs in your rates.  Better yet, line up a load for the return trip. This is where load boards are essential. It’s so easy to search your return route for loads that can be made along the way.  

Shop Around

Load boards allow you to shop around for loads that will be most beneficial to your company.  Think quality, not quantity.

Are Free Load Boards a Good Deal?

As they say, the best things in life are free.  This may be true for many things but for load boards, it is not.  Free load boards will certainly save you a monthly fee that most load boards charge.  However, most top companies prefer to post their loads on the paid sites so you won’t see the quantity or the quality that you would find on subscription load boards.  Also, some of the free load boards are only free for a limited time, have duplicate loads and outdated information.

Tips for Working with Load Boards

Know the Low

Before you reply to a post to negotiate a rate, always know your lowest possible rate that allows you to break even.  This will make negotiating a rate for a shipment much quicker and easier.

Walk on By

Don’t be afraid to say no.  If a load isn’t going to earn much and may cause more problems than it’s worth, keep walking.  Load boards make it easy to find one that will work for you.

Don’t Overbook

If you’re finding a lot of good quality loads on a load board, be careful.  If you book more than your company can handle, you’ll start missing deadlines.  This could hurt your company’s reputation for being dependable and trustworthy. It’s important for your business’s success that you make timely deliveries.

If you’re starting out as a carrier, a good load board is essential.  It’ll help you make contacts with which you can build direct relationships.  Once you have those connections, it’s good to continue to use the load board to fill in gaps and book deadhead miles.  

Direct Freight Services is a full-service subscription load board that can help you maximize your margins with our huge database of quality loads.  With helpful features like the app, load searching, truck posting, credit reports and scores, load filtering, turn-by-turn routing, and text alerts, Direct Freight is the only load board you’ll ever need.  Go to DirectFreight.com and try it out today!

Direct Freight Services, one of today’s leading load boards now has a new app!  The new app lets drivers search for loads from Direct Freight’s extensive loads database right from the comfort of their favorite mobile devices.  

The database has more than 300,000 loads daily that can be filtered to weed out the ones you’re not interested in and return only relevant, potential loads.  You can search and filter by a variety of preferences including origin, radius of origin, destination, ship date, full or partial size, trailer type (dry van, flatbed, reefer, step deck/single drop, double drop, van & vented, curtain van).  The returned results can be sorted by age (newest), pay rate (highest), deadhead (shortest), trip length (longest), origin city (A-Z), origin state (A-Z), destination city (A-Z), destination state (A-Z), trailer type, load size, weight ship date, credit report, and company name.  By customizing with your favorite filters and sorting your results, you can find just what you’re looking for with just a few taps.

Until now, Direct Freight was available on mobile devices by accessing the website but the new app streamlines everything to run more smoothly and efficiently on Apple and Android smartphones.  

Each screen within the app is clear and easy to navigate.  Posting your truck is simple and quick―simply input your origin, destination, trailer type, and the dates that you’re available and let the shippers find you.  You can also include your vehicle’s length, width, height, maximum weight, and any special comments you’d like to make.

No more sifting through loads that are already taken.  Direct Freight updates its loads in real time so you’ll always get current information.

When searching for loads, it’s difficult to know who to trust.  Unfortunately, there are scammers, dishonest shippers, and ones who are resistant to pay.  The new Direct Freight app has the same helpful credit score feature that is found on the Direct Freight website. You’ll  know exactly who you’re working with, reducing the risk of getting scammed. Along with detailed information on freight brokers and shipping companies, you can also see how long each shipper takes to pay so you can avoid the ones that are slow to pay if you choose.  Reviews are also available. Once you’ve found a shipper that you’d like to contact, there’s no looking up numbers and trying to remember them, just call them directly from the app!

Owner/operators and carriers who rely on Direct Freight to find loads or post trucks know what an invaluable tool it is for the success of their business.  The app is available on the App Store and Google Play and can be used with an existing Direct Freight account. If you don’t have an account, you can sign up in the app or on the website.  

Finding loads has never been easier than with the Direct Freight app.  To find out how Direct Freight can help you find the right loads and keep your trailer loaded go to DirectFreight.com today.

Nobody enjoys sitting in traffic, breathing in fumes, inching along at tortoise-with-a-limp speeds.  Traffic congestion is an increasing problem in the U.S. and is responsible for fender benders, pollution, and missed appointments, not to mention lots and lots of swearing.

Traffic congestion is much more than an inconvenience or an annoyance.  According to ATRI (American Transportation Research Institute), traffic congestion added $49.6 billion to the costs of doing business in the trucking industry in 2014.  For truck drivers, it’s not just a matter of burning through fuel, it causes problems delivering loads on time, increased wear and tear on trucks, and decreases the number of loads that can be taken, along with those ballooning fuel costs.  With the ever-growing population, and companies like Amazon driving a consumer expectation of two-day deliveries, more and more trucks are joining the traffic every day.

It’s a multi-faceted problem and its solution is equally complex.  

What Cities Can Do

Adding more lanes to roads and highways may be inevitable but big government road construction projects that increase capacity for vehicles have become politically unpopular in an era where global warming has demanded we decrease carbon emissions.  Additionally, the results of these big road projects can be unpredictable. Boston’s Big Dig project which took 16 years to complete, cost state and federal taxpayers $15 billion.  By moving the interstate underground, drivers heading to the airport and those in the downtown areas saw some congestion relief, but drivers coming in the city from any direction still face daily stop-and-go traffic.  In fact, it’s been observed that when these road projects are complete, more drivers flock to these roads and abandon the alternative routes that they’ve been taking to avoid the original traffic resulting in congestion all over again.

There are numerous things that cities can do to help ease traffic instead of or in conjunction with road projects such as carpool programs, incentivizing public transportation, creating truck-only lanes, replace tolls booths with high-speed toll sensors, and use moveable median barriers to reverse lanes during peak hours.  

What Truckers and Trucking Companies Can Do

While we look to government solutions, we must also look to truckers and trucking companies to take an active role in solving the problem.  The trucking industry has been focusing on technology to find better routes for trucks to minimize the amount of time spent sitting in traffic.

Some things that truckers can do to save fuel:

Fill those deadhead miles.  Deadhead miles are return miles with an empty truck.  Look for return loads so you’re not driving an empty truck.

Fill up.  The fuller the tank, the better the mileage.

Avoid idling.  Turn the truck off whenever possible.

Cruise along.  Use cruise control when it’s safe.  Trucks are designed to run efficiently this way.

Keep the truck maintained.  A well-maintained vehicle uses less fuel.  Get regular oil changes, A/C checks, tire condition checks, and wheel alignments.  

Keep tires inflated.  Regularly check tire pressure to make sure tires are not under- or over-inflated.  

Don’t speed.  The optimal speed for saving fuel for trucks is 65 MPH.

Take it easy.  Speeding up and slowing down unnecessarily can eat up fuel.  Regulate speeds.

Limit A/C usage.  At lower speeds, open windows cause trucks to use less fuel than the A/C does.

Be more aerodynamic.  Make sure that the roof-mounted air deflector is adjusted so air flows over the trailer.

Use the right technology.  The right route-planning software can help truckers plan the most efficient route.

Direct Freight Services allows truckers to not only find loads but it also provides tools to deliver those loads as efficiently as possible.  By using the load board to fill return miles, deadhead miles can be minimized. The Direct Freight website also provides information on hazardous weather conditions that can slow delivery times, and the turn-by-turn truck-specific routing can make sure you avoid traffic without getting lost.  

To see how Direct Freight  can improve your fuel usage, go to DirectFreight.com today!

It’s no surprise that the trucking industry is booming.  E-commerce has made it easier than ever to find and purchase anything that businesses and consumers could possibly imagine. The constant thirst for things brings the growing need for shippers and carriers.  

For shippers to do their job effectively, they need to be like an octopus with many arms working independently.  One arm to find a dependable carrier. One to negotiate rates. One to make the arrangements and another to track shipments and make sure they arrive on time.  And several other arms to deal with any breakdowns, slowdowns, or other emergencies. That’s why, as the industry grows, more and more shippers are employing the services of independent freight brokers.  

A freight broker works as a middleman between the shipper and carrier to ensure that the delivery of the freight is on time and on budget.  For a motivated, self-starter, the freight brokering business can be a rewarding and lucrative career choice. While a background in the trucking industry is helpful to understand the business it can provide a boost from the start with already-made contacts. However, not having that experience is not a deal-breaker.  Even industry outsiders can become successful freight brokers if they’re dedicated to learning the business.

How To Start Your Own Freight Brokerage

Get some training.  There are lots of online or classroom classes available to teach the freight brokering business inner workings.  By doing some training, you can hit the ground running instead of learning as you go.

Register Your Company.  You must register as a business or fill out a DBA (Doing Business As) form.  You can register as a sole proprietor, a partnership, corporation, or a limited liability company.  The differences between them can be found here.

Make a business plan.  Lenders will need to see a business plan before they provide any kind of financing.  A business plan also works as a helpful guide to steer you through your business’ the beginning stages.

Insure yourself.  Obtain the required general liability and cargo insurance.  Most shippers won’t do business with an uninsured freight broker anyway, but you also need it before you get your freight broker license.

Get your freight broker license.  You’ll need to obtain a USDOT or MC number and register with FMSCA.  To do so, fill out an application with the Federal Motor Carrier Safety Administration, or FMCSA.  More information can be found here.  

Obtain a surety bond.   This is a type of insurance.  It guarantees that carriers will be paid for their work and that as a broker, you will follow the rules.  Freight brokers are required to have at least $75,000 in a surety bond.

Get a legal process agent.  This is an FMSCA requirement.  There needs to be a legal process agent in every state you do business in case you are sued in that state.

Get money.  You’ll need start-up money to begin operations.  If you don’t have your own money, you’ll have to open a line of credit with a bank.

Equip yourself.  You’ll need a computer, printer, copier, fax machine, phone (landline and cell), office supplies, and an internet connection.  

Make a website.  You need to begin marketing to clients right away so make sure your website looks great, has pertinent information, and is easy to navigate.   

Once you’re all set up and legal, you can get to work.  Just like the real estate agent’s motto is location, location, location, a freight broker’s motto is contacts, contacts, contacts.  A successful freight brokerage relies on its contacts, quantity and quality. If you have a background in the transportation industry, you may already have a wealth of leads to pursue.  Ask people you know where they work. Look for companies in your area that ship products.

Another great way for a freight broker to build their contact list is by using a load board. DirectFreight.com is an easy-to-use load board that allows you to find trucks and carriers. It also has useful tools such as mile calculators, fuel price data, and other useful features.  Call Direct Freight Services today at (888)894-4198 or go to https://www.directfreight.com/home/ to sign up.  With DirectFreight, your freight broker company will have the tools it needs to become a success.

Sources:   

https://www.fmcsa.dot.gov/registration

https://www.fmcsa.dot.gov/registration/process-agents

Freight brokers serve an integral role in the trucking industry today.  They are go-betweens. Consultants. Negotiators. Problem-solvers. They perform all the necessary tasks to move freight from shipper to destination as quickly and efficiently as possible, all while solving any problems that pop up along the way.

So how do they make a profit?  Freight brokers earn their money by moving freight cheaper than the shipper is paying to ship it.  Successful freight brokers don’t simply pick a bottom-of-the-barrel carrier to create the biggest profit margin.  They negotiate the best price they can with carriers who have reliable trucks and reliable truckers. Breakdowns and truckers who don’t show up can be a costly risk, so good freight brokers find carriers who put the money into their equipment as well as their employees.

There are other ways freight brokers can increase margins.

Think globally.  

The world is better-connected and smaller than it’s ever been before.  Sure, setting up operations in another country may be an extremely intimidating prospect, with foreign regulations and the currency exchange.  However, it could be relatively easy to find an untapped market abroad.

Always be on the lookout for leads.

Freight brokers should always be on the lookout for more leads, and ways to generate new leads.  Targeting advertising using social media outlets like Facebook, Twitter, and LinkedIn can significantly increase a freight broker’s reach.  Writing a blog or guest-writing for an established company can develop leads.

Invest in an effective website.

Websites don’t merely tell potential clients who you are.  What good is that information if no one sees the website because it’s lost in a sea of other sites? A professional web designer can create a website that has effective SEO (Search Engine Optimization) so that when potential clients search for freight brokers, your website makes it to the top of the search results.  Adding content such as blogs or videos will help improve SEO on an ongoing basis.

Invest in things that will bring you the highest return on investment.  This could be anything from advertising to nurturing current relationships.

Network, network, network.  

For freight brokers, it’s all about the contacts.  Look for online communities, groups, and forums. Join trucking industry groups like the ATA (American Trucking Associations) or NASTC (National Association of Small Trucking Companies), or think outside the box and join your local chamber of commerce or other local groups businesses that need to ship freight.  

Diversify your client list to include both small and large companies.  

If you only have a few large companies that you work for, you’ll be losing a big chunk of revenue if you lose a client.  

Nurture relationships.

All relationships are vital to a freight broker, and no matter if it’s a carrier, an individual driver, or a shipper, listening is key to keeping them.  Ask questions about shipments, concerns, or even personal getting-to-know-you type questions and listen to the replies. A personal touch helps to build a trusting and long-term relationship.  Honesty goes a long way too.

Use the best freight management software.  

Tools like Direct Freight Services make tracking shipments simple and can easily fill those deadhead miles or fill in gaps in coverage.

If you’re a freight broker, Direct Freight Services can help you grow your business.  It has helpful features like a convenient carrier app, email and text alerts, load posting, truck searches and you can even use Direct Freight to manage all your loads, even ones that aren’t posted on our board.   Direct Freight Services is a valuable tool to add to your Freight Broker’s toolbox.  Go to DirectFreight.com and check it out  today.

Sources:  

https://www.nastc.com

https://www.trucking.org/About.aspx