The salary of a freight broker can vary. A freight broker can work on commission and some freight workers can be paid a yearly salary. Those freight workers who work for themselves have expenses to pay, such as filing fees, licensing, office equipment, insurance bonds and other expenses. Before a freight broker can begin making money, the shipper needs to build contacts, unless the freight broker works with a company that is already established and has shipping clients.
Job Of A Freight Broker
A freight broker is an individual or business that works as a liaison between individual or company that needs an authorized motor carrier and shipping services. However, a freight broker does not act as a shipper or carrier. The job of a freight broker is to determine the needs of a shipper and connect the shipper with a carrier that will transport the shipper’s items at a reasonable price.
The salary of a freight broker varies, depending on the company the freight broker works for, benefits, the stability of the industry and the experience level of the freight broker. However, on average, a freight broker can make about $39,000. The location where the freight broker works can determine the salary of the worker. For instance, a freight broker in Marietta, GA earns $41,000 on average, and a freight broker in Dayton, OH can earn $38,000 on average.
Benefits Of Owning A Business
Freight brokers have the potential to earn over $100,000 yearly. Those freight brokers who make more than the average salary are typically business owners who have freight agents that work for them in an office environment. The expense of owning a freight broker business can be high, but if the business generates a stable income, the profit can cover any expenses.
Most freight brokers work on commission in the freight industry. Freight brokers who deliver quality shipping methods at affordable prices develop lasting business relationships with their clients, which is good for securing salary based on commission. The more hours worked, the more commission the freight broker can earn. Some freight brokers work part time, but if the broker has credible clients, the part-time hours do not affect his commission.
A freight broker has the option to work as a freight agent, which most freight brokers start off doing. Those who consider working as the agent do not have to obtain a license or carry insurance, because the freight agent typically works as an individual contractor as a representative of a freight broker. The freight broker that the freight agent works for is responsible for obtaining the necessary license, insurance and other business expenses. The average salary of a freight agent is $20,000, however in San Diego, CA a freight agent can make $38,000, the same average of a freight broker in Dayton, OH, but with less duties and expenses.