Freight brokers are the people who help businesses move their goods from one place to another. They work with truck drivers and shipping companies to make sure that everything goes smoothly and on schedule. Freight brokers typically get paid a commission percentage for their services. How much they make depends on how many loads they broker each month.
Commission Structure
Most freight brokerages pay their brokers a percentage of the total load rate. The load rate is the amount charged to the shipper for transporting their goods. The typical commission ranges from 10% to 20%. However, some companies offer a lower base rate with the opportunity to earn bonuses for brokerages that bring in a high volume of business.
Average Base Pay
The average base pay for freight brokers is $40,000 per year. However, experienced brokers can earn up to $100,000 per year. The amount of experience a broker has will play a big role in how much they make each year.
Load Types and Commission Percentages
There are six main types of loads: full truckload (FTL), less than truckload (LTL), hazardous, oversized, refrigerated, and time-sensitive.
Full Truckload
FTL loads are usually shipped on trailers that are not shared with other customers. The commission percentage for FTL shipments is typically between 10% and 20%.
Less Than Truckload
LTL shipments are usually smaller shipments that are shipped on trailers with other customers’ goods. The commission percentage for LTL shipments is typically between 20% and 30%.
Hazardous
Hazardous materials are any materials that are flammable, corrosive, or poisonous. These shipments require special handling and training. The commission percentage for hazardous shipments is typically between 10% and 30%.
Oversized
Oversized loads are any loads that are too large or heavy to be shipped on a standard trailer. The commission percentage for oversized shipments is typically between 10% and 20%.
Refrigerated
Refrigerated shipments are any shipments that need to be kept at a certain temperature. The commission percentage for refrigerated shipments is typically between 10% and 30%.
Time-Sensitive
Time-sensitive shipments are any shipments that need to be delivered by a certain time. The commission percentage for time-sensitive shipments is typically between 10% and 50%.
Method of Payment
Freight brokers typically get paid per load. They may also get paid a monthly salary, but this is less common. The method of payment varies from company to company. Some companies pay their brokers a percentage of the total shipping cost, while others pay a set commission per load.
Incentives and Bonuses
Some freight brokerages offer incentives and bonuses to their brokers. These can include a percentage of the shipping cost, a bonus for every load delivered on time, or a bonus for every new referred customer.
Conclusion
Freight brokers are the people who help businesses move their goods from one place to another. They work with truck drivers and shipping companies to make sure that everything goes smoothly and on schedule. Freight brokers typically get paid a commission percentage for their services. How much they make depends on how many loads they broker each month.