The logistics of freight movement from the point of origin to the final destination are directed by a transportation broker, also known as a freight broker. The broker finds and arranges the most efficient methods for moving goods by using land, air, and sea carriers. A transportation broker does not need to see the goods that need to be moved. The job can be completed as long as he or she has a detailed description of what is being moved.
Government transportation agencies in many areas require a transportation broker to be licensed. Some jurisdictions also demand that the broker have surety bonds or liability insurance. The insurance shields the broker from liability in the event that freight is damaged, lost, or stolen.
The broker must determine which modes of transportation are most appropriate for a shipment. This could entail loading the shipment onto a truck and driving it away, or planning a series of transportation options that include trucks, trains, and ships. Scheduling begins after the best methods have been chosen.
A transportation broker’s primary responsibility is scheduling. The times for pick-up and drop-off must be coordinated. For example, if the shipment will begin on a truck and then be transferred to a train for the remainder of the journey, the broker is responsible for coordinating schedules so that the goods are not left in transit between the truck and the train.
Each stage of the shipment process is tracked by the broker using a computer. Shipment tracking assists in ensuring that the goods are not misplaced. Any issues that arise are handled by the broker, who is usually available on weekends and evenings if problems arise.
A transportation broker’s other responsibilities include prospecting for clients. The broker can secure future work by researching potential clients, contacting them, and securing a contract for their transportation needs. Websites, business organizations, and networking are all common ways to market a transportation broker company. Brokers may also conduct market research as part of their efforts to grow their business.
A transportation broker’s financial responsibilities include preparing financial reports, spreadsheets, and insurance claims. The broker is usually in charge of setting the shipping rates. The broker creates financial budgets as he or she adjusts the client base.
Most companies require their transportation brokers to have a high school diploma at the very least. Other than any required government certifications, a broker who opens an independent business is not required to have a specific education. The broker may work alone or supervise a team of people.