As a freight broker/agent, you are responsible for connecting carriers and haulers to transport cargo. You expedite and route the movement of incoming and outgoing shipments in airline, train, and trucking depots and shipping docks. Many freight brokers also take orders from customers and arrange the pickup of consignments for delivery to the loading platform.
Is trucking freight/courier services a good career path? The answer in one word is YES. However, there are a few things that you need to consider before you jump into becoming a freight broker or agent. In this article, we discuss how freight brokers are different from cargo agents. We also shed light on some of the reasons why you should explore a career in the freight brokerage industry.
Differences Between a Freight Broker and a Cargo Agent
People often confuse freight brokers with cargo agents. While both are responsible for handling freight, a major difference lies in their licensure and liability.
A freight broker is licensed through the Federal Motor Carrier Safety Administration (FMCSA) and is legally liable for the freight. On the other hand, a cargo agent is not licensed or legally accountable.
Unlike freight brokers, cargo agents do not have to focus on a customer’s creditworthiness. They are free from responsibilities such as invoicing, compliance, claims, credit checks, and more. Instead, they supervise the fundamentals of logistics and also maintain customer and employee relationships.
Simply put, cargo agents have less liability in comparison to a freight broker. Cargo agents need freight brokers to work, whereas freight brokers can work even without cargo agents.
Top 4 Reasons to Start a Freight Broker Career
Here are some of the top reasons why you should consider becoming a freight broker in 2022 (and beyond):
1. High Demand and Growth
The logistics industry is growing, as is the need for freight brokers. How many jobs are available in trucking freight/courier services? As of May 2021, about 85,750 jobs are advertised for freight brokers each year. According to the U.S. Bureau of Labor Statistics (BLS), industries that hired the most cargo brokers include:
- Freight transportation arrangement (52,450 jobs)
- Couriers and express delivery services (7,570 jobs)
- Scheduled air transportation (7,080 jobs)
- Support activities for air transportation (5,130 jobs)
- Truck transportation (3,600 jobs)
2. Competitive Salary
On average, the yearly freight broker salary in the U.S. is $71,500 ($36.67 per hour). Entry-level positions begin at $45,000 per year, while most experienced professionals earn up to $107,500 per year.
The top five states that offer the highest salary to freight brokers are:
- Connecticut ($71,700 per year)
- Maine ($57,540 per year)
- South Dakota ($56,240 per year)
- Oregon ($55,450 per year)
- Massachusetts ($55,000 per year)
As a freight broker, you can start your own trucking business and become your own boss. With the right training program, you can easily learn how to launch your business, find freight, set up your back office, manage credit and expenditures, scale your operations, and much more.
Becoming a self-employed freight broker increases your ability to earn a better salary than working for somebody else. You have complete control of the direction and growth of the company. Plus, you have the final say in every matter without others telling you what to do. Moreover, you can enjoy flexible work hours (i.e., you can decide when and how long you work).
As a freight broker, you also have the option to work remotely, from home or any location that is convenient for you. You can find tons of remote jobs on Glassdoor, Indeed, ZipRecruiter, and other job-hunting platforms.
Top 5 States for Freight Brokers
We have already discussed the top five states that offer the highest salary to freight brokers. Now, let’s take a look at the top five states that offer the most number of jobs to skilled cargo brokers.
California offers around 12,630 on average to freight brokers each year, which translates into 0.76 employments per thousand jobs. With a location quotient of 1.26, the occupation has a higher share of employment than average. If you choose to become a freight broker in California, you can expect to earn an hourly wage of $24.69 ($51,350 per year). Learn More >
Next on our list of top states with the highest employment level in freight brokers is Florida, which provides about 9,000 jobs each year. A location quotient of 1.72 indicates that freight brokers have more career opportunities than people in other professions. Freight brokers in Florida can earn an average hourly income of $22.67 ($47,150 per year). Learn More >
Texas offers 8,600 jobs, translating into 0.70 employments per thousand jobs. It also appears to be a high-demand market for skilled freight brokers, with a location quotient of 1.16. Freight brokers in this state make an average yearly income of $46,060 ($22.14 per hour). Learn More >
Illinois provides about 7,550 jobs each year to freight brokers. Out of all the states listed in this article, it has the highest location quotient of 2.21, which means you have an exceptional chance of finding a job in this state if you are a qualified freight broker. You can expect to earn an hourly wage of $23.99 ($49,900 every year). Learn More >
With 5,790 jobs advertised each year, New York stands fifth on our list. A location quotient of 1.10 indicates a slightly better share of freight brokerage jobs than average. Freight brokers in New York can earn an average income of $25.87 per hour, or $53,810 per year. Learn More >
Become a Freight Broker with ed2go
ed2go partners with over 2,000 colleges and universities to bring online learning to students across the country. Here are some of our top partners offering 100% online Freight Broker/Agent Training courses:
- University of West Florida
- Mississippi State
- University of Houston
- Los Angeles City College
- George Mason University
In just six months, our online, self-paced course will teach you the fundamentals of the freight brokerage industry. You will become familiar with transportation law, agreements, insurance, and contracts. Once the course is over, you will be able to set up and run your own freight company, including determining quotes, recordkeeping, negotiation, and marketing methodologies.
Ready to get off the road and start your own freight brokerage? We are here to help! Get in touch to learn more about our Freight Broker/Agent Training.
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