eeds to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-

Freight brokers search for shippers who need to transport their cargo from point A to point B. The broker then searches for a truck to move the cargo. The freight broker, then, puts the two together and acts as a middle-man, collecting a commission for his or her matching-making skills.

There are a multitude of details and procedures that freight brokers follow. These procedures and details involve a great deal of coordination with both the shipper and the carrier.

Here are 7 tips that will help a freight broker manage and coordinate their freight broker duties.

1. Understand the needs and desires of both shippers and motor carriers.

One of the biggest items of importance for shippers is “cost”. Big companies employ entire logistics departments to find the most cost-effective route and method to move their cargo. Some large shippers use their own trucks; some use freight brokers; and some allow their customer to arrange for the transportation. Smaller shippers rely more upon freight brokers to move their cargo. But both large and small shippers have “cost” at the top, or close to the top, of their priorities.

Carriers also place a priority on “cost”. The current situation with high fuel costs and other high operating expenses have taken a toll on the availability of trucks. This availability, commonly known as “capacity”, has been dwindling for several years. While shipper rates have increased, it’s unlikely that rates have kept pace with a trucker’s ongoing costs. The bottom line is, the truck needs to cover not only the actual costs but he or she needs to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-

e a great deal of coordination with both the shipper and the carrier.

Here are 7 tips that will help a freight broker manage and coordinate their freight broker duties.

1. Understand the needs and desires of both shippers and motor carriers.

One of the biggest items of importance for shippers is “cost”. Big companies employ entire logistics departments to find the most cost-effective route and method to move their cargo. Some large shippers use their own trucks; some use freight brokers; and some allow their customer to arrange for the transportation. Smaller shippers rely more upon freight brokers to move their cargo. But both large and small shippers have “cost” at the top, or close to the top, of their priorities.

Carriers also place a priority on “cost”. The current situation with high fuel costs and other high operating expenses have taken a toll on the availability of trucks. This availability, commonly known as “capacity”, has been dwindling for several years. While shipper rates have increased, it’s unlikely that rates have kept pace with a trucker’s ongoing costs. The bottom line is, the truck needs to cover not only the actual costs but he or she needs to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-

t cost-effective route and method to move their cargo. Some large shippers use their own trucks; some use freight brokers; and some allow their customer to arrange for the transportation. Smaller shippers rely more upon freight brokers to move their cargo. But both large and small shippers have “cost” at the top, or close to the top, of their priorities.

Carriers also place a priority on “cost”. The current situation with high fuel costs and other high operating expenses have taken a toll on the availability of trucks. This availability, commonly known as “capacity”, has been dwindling for several years. While shipper rates have increased, it’s unlikely that rates have kept pace with a trucker’s ongoing costs. The bottom line is, the truck needs to cover not only the actual costs but he or she needs to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-

he current situation with high fuel costs and other high operating expenses have taken a toll on the availability of trucks. This availability, commonly known as “capacity”, has been dwindling for several years. While shipper rates have increased, it’s unlikely that rates have kept pace with a trucker’s ongoing costs. The bottom line is, the truck needs to cover not only the actual costs but he or she needs to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-

eeds to generate a profit on top of the costs.

2. Understand that the freight broker needs to negotiate a win-win-win situation whereby everyone achieves their goals – shipper, carrier and freight broker.

Negotiating skills come easy for some people; others hate the idea of “haggling” with opposing parties. A good negotiator will understand that there is, at times, a “give-and-take”. Knowing when to “hold em” and when to “fold em” can result in huge profits over time. The best way to exercise this “hold em and fold em” tactic will come from a broker monitoring his or her profit margin along with other important items such as volume of loads and days-in-collection on the receivables from shippers.

3. Pay attention to sound business fundamentals.

There are many successful freight brokers. Some have been around for quite awhile; others are just getting a good start. Of these successful brokers, each and every one, most likely, has relied upon sound business fundamentals. In fact, that’s probably the very reason for their success. It takes more than just “brokering” to be successful. It takes a person to “purpose” to pay attention to marketing, cash management, planning and creating an operating blueprint.

Each of these four topics has had volumes written about them. Without attention to these, a freight broker is most likely doomed to failure – regardless of his or her brokering knowledge.

4. On finding shippers, find a strategy that works and then stick with it - but keep experimenting as well.

One of the biggest fears for beginning freight brokers is how and where to find shippers. It’s not as difficult to find shippers as one might think. However, it is difficult to find good paying shippers who also have loads that are relatively easy to cover.

One of the most effective (but not easy) methods is to search the internet using unique keywords. There are plenty of various shipper directories availa