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What are Truck Brokers?

Article Details
  • Written By: Harriette Halepis
  • Edited By: Bronwyn Harris
  • Last Modified Date: 11 August 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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Truck brokers are individuals or companies that specialize in transporting freight from one area to another. Unlike generalized freight brokers, truck brokers work solely with truck transportation methods. Even though these professionals help to facilitate the transport of goods, truck brokers do not own trucks, operate machinery, or have any physical involvement with the placement or sending of goods.

Companies that want to ship goods across a country or throughout the world often call truck brokers to simplify this process. A truck broker acts as a liaison between a trucking company and a customer. Since these brokers often have access to large databases filled with price information, a truck broker can likely provide a client with an unbeatable carrier price. In addition, most truck brokers have long-term relationships with certain carriers, which means that a customer is almost always guaranteed a great rate.

In most countries throughout the world, truck brokers are required to have a government-issued license prior to working as a truck broker. Within the United States, a company or individual can obtain a license from the Federal Motor Carrier Safety Administration. Further, brokers are often required to have adequate insurance in addition to surety bonds.

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Surety bonds, or bank guarantees, are issued by banks or other financial institutions to individuals for a certain fee. Once a broker has obtained a surety bond, he or she is responsible for paying out any amount equal to that of a bond in the case of an accident or emergency. This type of bond ensures that a broker will be able to handle valuable freight without any risk to a customer. Thus, obtaining a surety bond is an essential part of becoming a truck broker.

While companies that wish to ship goods can contact a carrier directly, this is often a costly mistake. Since brokers can gain a better carrier deal, companies that have a large number of goods to ship can almost always gain a better price by working with a broker. Truck brokers are also an essential part of any carrier business, since these professionals provide carriers with a large amount of constant business.

Those aspiring to become a truck broker may want to obtain an internship with a logistics company. This way, valuable information regarding the transportation industry can be gained. Following time spent working as a truck broker, an individual may be able to work independently. Top truck brokers earn a favorable wage, since these individuals are often the best in the business.

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