Can you be a freight broker as a side hustle? (2024)

Can you be a freight broker as a side hustle?

From starting a dispatch business or offering last-mile delivery services to becoming a freight broker, vehicle rental service provider, or get into warehousing these side hustles allow you to leverage your expertise and industry knowledge to generate additional income.

How profitable is a freight brokerage?

What does gross margin mean for freight brokerage? Gross margin numbers are often displayed as a percentage of net sales and for a freight brokerage, usually range from 10% - 20%. This means that for every $1 you pay your brokerage, they usually take away less than $. 15 in gross margin.

Can you work from home as a freight broker?

Many start their freight broker careers working in-house with a transportation company seeking to work remotely. Work from home freight brokers may be on staff or they may be independent contractors that market their services to shipping companies and find clients on their own.

Is becoming a freight broker worth it?

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. As a freight broker, you can start your own trucking business and become your own boss.

What are the disadvantages of using a freight broker?

- Lack of control: When you use a freight broker, you're giving up some control over your shipping process. - Dependence on technology: Freight brokers typically rely heavily on technology, so if there are any problems with their systems, it can cause delays in your shipments.

How do brokers find loads?

Is there a high demand for freight brokers?

The market size of freight brokerage reached USD 51.7 billion in 2023 and is set to witness 6% CAGR from 2024 to 2032, owing to the rise of e-commerce that has led to an increased demand for efficient and flexible freight solutions.

How stressful is being a freight broker?

Yes, being a freight broker is stressful.

This, combined with the significant amount of work it takes to organize and manage shipments, often results in freight brokerage being a stressful job. However, many people find this stress worth it for the money they earn and the freedom of being their own boss.

Is it better to be a freight broker or agent?

Freight agents have less liability in comparison to a freight broker. Freight agents need freight brokers to operate, whereas freight brokers can operate without freight agents. A freight broker will have a more consistent brand look and feel across its office(s) versus freight agents that operate under the broker.

What is the day in the life of a freight broker agent?

By mid-morning, all appointments have been met, schedules set, and the trucks have picked up their loads. The rest of the morning is typically spent following up with customers, scheduling loading and unloading of cargo, tracking deliveries, and other activities that need to be done in relations to cargo delivery.

How hard is being a freight broker?

Becoming a freight broker is a relatively easy and low-cost way to start a business. Still, from there, you're facing a steep learning curve, a fiercely competitive industry, and tight margins—a perfect storm for two-thirds of new brokers who fail in their first year. But it's not all doom and gloom.

What is the average age of a freight broker?

The average age of freight brokers is 40+ years years old, representing 54% of the freight broker population.

How to stand out as a freight broker?

Develop relationships with trusted carriers

Consider using an onboarding platform for carriers and utilize tools like Carrier 411 for vetting and monitoring of carriers. Trucker Tools has developed a trusted network for carriers, allowing the broker to rebook carriers in their network.

Do freight brokers get sued?

While freight brokers generally are not liable for cargo claims (i.e. loss or damage to cargo), there are several ways brokers can become liable for cargo claims.

What percentage do freight brokers keep?

According to a Freight Waves survey, the average commission is 13% to 15% of a load's net revenue. Example: A shipper pays $4,000 to a licensed freight broker to move a load. The freight broker negotiates $3,000 with the trucking company to transport the load, leaving $1,000 net revenue.

Why not use a freight broker?

One of the biggest downsides to using a freight broker is not having total control over the shipment. Once the load is given over to the broker, the shipper's ability to manage that load may be hindered. Freight brokers must make money somehow. They do that by charging more for a load than they're paying the carrier.

Do brokers own their own loads?

The short answer is no. In the transportation world, brokers find loads for carriers. It's the trucking company that owns the trucks, while the shipper owns the freight that must be moved from point A to point B. Still, there's a lot more to explore when it comes to these transportation roles.

How do freight brokers get clients?

What is the best load board for brokers?

What type of freight is most profitable?

Dry vans pay the least, flatbed loads pay higher, and refrigerated cargo pays the most. Each type of load required different driver skills and equipment. Developing the skills and capabilities to haul higher-paying loads is a long-term strategy to build a more profitable trucking company.

What is the most profitable freight?

Hazmat Hauling

The Hazmat industry has some of the best paying trucking companies. This is because Hazmat hauling involves transporting hazardous materials such as chemicals, fuel and explosives.

What states have highest paying broker freight?

Can freight brokers make 7 figures?

Yes, freight brokers can indeed make 7 figures – many have successfully grown 6, 7 and even 8 figure businesses.

Can a freight broker make millions?

The fact is, the freight brokerage business is very fragmented with thousands of brokers and the majority of freight brokerage firms does less than $5 million per year in sales. It's important to note that while gross revenue is great, the key lies in running a profitable and sustainable business.

How do freight brokers make commission?

Freight broker commission is calculated on the gross margin of a booked load. You can determine gross margin by subtracting the amount the shipper is charged from the amount you (the broker) pay the carrier. The margin left over directly impacts how much money a freight broker earns.