Before we can get into how much do freight brokers make, the first thing to discuss would be what a freight broker is. Freight brokers are intermediaries between a shipper and a carrier. They manage the contact and agreements between the two sides for the transport of the goods.
They often offer other similar services except transportation, like logistics and distribution of the products. Freight brokers do not take part physically in the process. They organize and schedule the products' delivery.
Helping manufacturers or shippers to choose the best deal for their needs, and helping the carriers to be always on the move and transport products even on their return journeys, they stand between as an important part of the chain.
You can also check out some training about how to become a shipping agent all over the internet or libraries to learn more. Now let's get to the meat.
The average salary of a freight broker is approximately 43 thousands dollars in a year, ranging from 30 to 80 thousands dollars in the US. This depends mostly on the experience, personal skills and work done.
Still, like most broker agents, their earnings vary depending on commissions, bonuses or profit shares. While the novice brokers earn up to 30 thousands dollars in commissions, the more experienced agents can easily reach up to 100 thousands dollars in a year.
One of the most deciding factors in their earnings is their contact network. It is important for freight brokers to have a big database of carriers to offer the shippers the best price and quality.
From a business perspective, freight broker companies have an average income of 5 million dollars per year in the United States. With the top ones earning up to 11 billion dollars, it is a very inviting business field.
One of the problems to be addressed here, is the fact that high revenues do not always mean high profit. This line of business operates in average with a 15-20% profit from its revenues.
Adding taxes and other costs, show that the real profit is not that high. The average profit in the United States for the freight broker agencies is 250 to 500 thousands dollars.
This does not diminish the possibilities of earning big. The freight brokers business has had a steady growth since 2013, when a new law destabilized the market. There has been an increase in the number of new companies and licensed brokers. This showcases stability and potential of profit in the sector.
In conclusion, though the market for freight brokers is not new, it is still a developing one. And the main reason is, that it is still considered profitable and stable by the newcomers.
How Much Do Freight Brokers Make Per Load