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What is Freight Brokering?
• Making a market between a buyer and seller
• An FMCSA licensed and bonded person arranging
transportation
• Any buyer of transportation who holds another
government authority, must open a licensed and
bonded brokerage to purchase transportation from
another authorized carrier (mode of transportation)
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COLLECTION PROCESSING DISTRIBUTOR
BROKER/WHOLESALER BRAND PACKAGER GROCER
CONSUMER
RECYCLERWASTE
MANAGEMENT
An Act of
Transportation
An Act of
Transportation
An Act of
Transportation
An Act of
Transportation
An Act of
Transportation
An Act of
Transportation
An Act of
Transportation

SUPPLY CHAIN LOGISTICS
A broker can appear in any of
these acts of transportation

How do I start?
As an agent, or get a License
• You need to open a “separate new business”
• If you own trucks – separate business creation required
• As an “agent” for a broker, do I need a license and bond
– NO – see Truckalocity.com
• Don’t want to be an agent, then get your own license
and bond @ FMCSA.DOT.GOV
• We can show you how operate and maintain a
brokering company after you are licensed in our HANDS
ON training in a city near you.

New Opportunity
“Load Finder” – Carrier Sales Agent
• Since MAP 21, the new brokering law, truck brokering is
outlawed, that leaves only licensed and bonded
brokering.
• You are a sales agent, who is not involved in the cash
flow of the carrier, but you invoice that carrier for your
services.
• You negotiate higher rates for the carrier, credit check
and qualify load source, collect and deposit for the
carrier, invoice for your services
• No bond or license required.

Definitions I need To Succeed:
the following examples from the Manual©
• Motor Carrier: person authorized by the FMCSA to take
possession of property for interstate transportation. Seller of
transportation
• Licensed Property Broker: A Bonded person who arranges
transportation between a willing buyer/seller, and is not in
possession nor has an interest in the property.
• Shipper: a person paying for transportation
• Consignor: originator of cargo and creates a Bill of Lading for the
consignment.
• Consignee: receiver of cargo and executes the BOL of the
consignment.

Training I need To Succeed:
Broker Training now required by Law
• If you want detail, order the Transportation Brokering
Operations Manual© 2014, online, it’s downloadable.
• You are the broker in the middle, you cannot afford to
misuse your definitions, when arranging a load
movement.
• Learn more in our HANDS ON programs, where you
will be provided a simple 1 page Contract you can use
to sell load finding service to as many motor carrier
authorities you can sign.

The Freight Broker Marketplace
• You have a trucker on one side. Who wants as much
per mile as possible to truck a load.
• You have a shipper on one side, who wants to pay as
little as possible for trucking services.
• One is “demand, the other is “supply”
• One is a “buyer”, the other is “seller”
• HANDS ON classes will make you an online and on the
phone market player

Trucking in Relation to Brokering
• All of the largest trucking companies in America,
have a “brokerage”, they do both brokering and
trucking.
• One has all of the liability, the broker ostensibly has
none, if his conduct is correct
• MAP 21 , the new law, requires they be totally
operated separately
• Our HANDS ON programs will add dollars the
bottom line of both companies.

How Do I Create a
Freight Brokering Business Plan
• Obtain Databases of shippers and authorized and
insured carriers. The broker with the biggest
databases are the most successful.
• IDENTIFY those prospects who need your services
• Project, the amount of time and money to reach
each prospect.
• HANDS ON program will save you thousands of
dollars and hours of time in executing your plan

Selling Brokering Services and/or
Trucking Services
• Selling transportation is not an art form, but merely
a question of “equipment availability”.
• If you can find, negotiate, then book that truck, you
are a great broker. Shippers can make the twenty
phone calls to find a truck, or they may ask you to
do this for them- you are a travel agent.
• We can show you how to sell, and halve your
investment, in our HANDS ON Class in a city near
you.

Your Sales Plan Roll Out
• You have, by now, a target on each shipper, who can
give your “RETAIL” freight (you bill direct); no more
wholesale brokered loads.
• Your plan defines time and energy needed to complete
your task
• You goal is “TO QUOTE” either truck load or (LTL) less
than load.
• Our 7 DAY HANDS ON class option, you will actually call
shippers and carriers and get business

Ok, I Made a Sale, Now What?
• Congratulations, shipper who is looking for
available truckers, has said OK, get me a quote
• You need to assay backhauling truckers from load
boards, or your own database of truckers.
• We provide a motor carrier database (pre
interviewed) for those who want to obtain
brokering database tools from LoadTraining.com
• Our HANDS ON classes you will actually develop
freight rates to quote shipper.

Quotation Process
• Simply follow our broker operations mouse pad
(provided to all HAND ON attendees),
• Do mileage, Inventory, and Survey (if necessary),
and you are ready to quote.
• Call shipper, give quote and go for the close- to an
order.

Developing Freight Rates That
Get The Order For Service
• You do not pick freight rates out of thin air, its not
about you and what it takes to truck something, but
what the market will yield
• Supply and Demand determine rates, your job is to
use the supply demand knowledge to guesstimate
what it will take to put a truck under your load.
• Our HANDS ON programs effectively teaches you
how to “CALL THE MARKET” whether TRUCK LOAD
OR LTL

Credit qualifying a shipper
• CONGRATULATIONS, a shipper wants you to
find them a truck.
• YOU ARE EXTENDING YOUR CREDIT (WALLET) to a
complete stranger
• OUR MANUAL has a complete credit
qualification process to establish accounts
• OUR HANDS ON training offers a simple 1
page credit application, shipper, and brokers
readily sign

Truck Finding Process
• Its all about availability that sets the price of a
motor carrier.
• Post your load on a load board, wait for carriers to
call you, or call who did it last, or actually call
carriers and “ask” “what is your rate”.
• Obtain a “BOOKING”
• This is the ART form in brokering. Our HANDS ON
Training will make you a great truck finder.

The “BOOKING”
• You have arbitrated between shipper and carrier
and received their contract commitments to move
this load
• Your position in this negotiation must be learned by
some other method than trial and error, as a
booking is a “verbal contract”
• Learn in HANDS ON how to turn words into action.

The “Contracting” Process
• Turn your verbal into a written contract
• Written contracts although not required by LAW, have
become the norm. We have a one page contract that
you can use in your brokering arrangements.
• You need to avoid motor carrier liability during this
activity. Verify Insurance Acord validity
• Our HANDS ON classes will show you how to turn a
paperwork busy program into a few minute operation
to speed your brokering operations.

Vetting Carriers’ Safety
• You must undertake a “Due Diligence” act to secure
your lack of liability.
• Examine the government website, verify that all
credentials are accepted by the government,
• Give notice to shipper in the event of untoward
tidings.
• HANDS ON classes will direct

The Rate Confirmation
and “Bill of Lading” (BOL)
• After completion of vetting, you are ready to send your
Rate Confirmation to motor carrier.
• We have a time tested form to use for all HANDS ON
attendees.
• Wait 5 minutes, then conduct your first “Check Call” to
carrier. Do not dispatch driver, that is the carriers
responsibility and liability.
• Our HANDS ON Class will make you expert in the
issuance of a Bill of Lading, which is generally made out
by the Consignor.

Avoiding Liability in the Arrangement
of Freight as a Broker
• You are a third party, between the buyer and seller. The
contract is between them, not you.
• Avoid being a party with a “beneficial interest” listed on
the BOL
• Be careful to avoid dispatch activities, you are the travel
agent, you are not giving the pilot (driver)a
breathalyzer.
• This is the most important HANDS ON training class
lecture. Without it you are helpless in the first claim on
a load you brokered.

Voluntary Freight Claims Resolution,
You as a “Mediator”
• Learn “Dave’s” Recipe, for negotiating and resolving
95% of freight claims that appear on your brokering
radar.
• Accurate records of your mediation are critical, as of
this point you have no idea how BIG this claim is going
to get.
• OS&D claims resolution is governed by Statute and
Regulation. Learn how to be compliant, in HANDS ON
class.

Bookkeeping &
FMCSA Record Retention
• The new law, “MAP 21” provides fines to those who
broker illegally.
• New “financial responsibility” requirements exist.
• “Records to be Kept” are important if you as a broker
are “audited” by the government
• The Load Master Ledger process out lined in our
MANUAL” is taught in our HANDS ON classes. We have
a simple one page bookkeeping process to keep you
compliant.

Cash Management &
FMCSA “Financial Responsibility”
• Learn how to manage your cash flow so you will
never have to borrow money to pay motor carrier
on time.
• A “Ding” is what you have to avoid.
• Our HANDS ON Training can help you start, but
more importantly STAY in business

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