Category Archives: Reference

What is a Loadboard?

A loadboard, otherwise known as a freight board, is an online dispatch/match services that allows a shipper (the consignor) to post, to a forum board, any available freight they may have for the day, while the carrier is allowed to post any available equipment that he or she has free. The two then come to an agreement or work through a freight brokering services to secure terms and conditions before concluding business and launching the aforementioned load.

Independently owned and operated, freight boards, in most cases, charge a small fee to post your available freight and/or your available transport equipment. In some cases however, other load/freight-boards do not charge a fee to create an account or to post equipment and freight. Take a look around online to find something that fits within your operating budget.

It’s important to remember that while a load-board may seem like an incredible resource for the broker, a load-board is simply a tool to help one find and complete a bigger job. Do not count on freight load-boards for income. As you may already know the transportation industry is ever changing so it’s important to learn not to depend too heavily on any one resource. Create a database of carriers located around and about active lanes you may already commonly use, add them to your database and call on them often to show your gratitude

If you don’t already have a copy of PC Miler in your office, you may want to consider signing-on with a loadboard service that also offers this service for free. An all inclusive loadboard such as http://www.getloaded.com is a great place to start as a new freight broker. The staff is rather helpful and as I’m sure you by know, you’ll need all the helpful you can get… You’re a small business owner.

What You Will Need:

A Service Subscription (Getloaded.com, Freightfinder.com)

An MC Number (issued byt the FMCSA)

Computer with High-speed Internet Services

A Fax machine

A Working Telephone Line

You will need to collect a bit of information from the carrier and/or shipper before you will have adequate enough detail to post your load/truck. For example, if you are posting available freight, a carrier service is going to need a few specifics. For example, cargo weight, total mileage, pick-up & drop off locations (addresses), etc.).

Now you will probably want to  create a,  Website/Password folder in order to store all of the web addressees and passwords you are learning. Some of the documents that you will keep in your office are required to be left on record at all times, therefore you may also wish to purchase a sturdy filing cabinet with a key for these types of documents. You may be asked to recall information located on these documents, so a small cabinet that you can keep within arms reach will work well for your needs.

Jason Ledford

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The True Cost of Starting-up a Freight Brokerage

There seems to be an abundance of misinformation online when it comes to the cost of starting up a Freight Brokerage. For example, potential entrepreneurs are often turned off by the idea of putting up $10,000 to secure a surety bond, when in fact in most cases, whereas the owner/partners have positive credit scores, a surety bond requires less than one thousand dollars to secure and post.

In this article we will address the true cost of starting-up your Freight Brokerage. From conception to the first day of operations, we will exam the true cost of start-up, including initial capital requirements, 1st quarter operational cost, and the high cost of failure.

In the beginning there was the conception of a small business idea. Maybe you have a history with the industry, maybe a friend makes a comfortable salary as a freight broker, or maybe you’ve read that the industry is booming and holding steady even in the most difficult of economical times. Either way, undoubtedly this is an exciting time in your life: You’re considering a new venture as a small business owner and you deserve a moment to daydream… there, now that that’s all settled, let’s get down to brass tax.

Local Fees and Requirements – Although fees vary between municipalities, it is common in the United States for your county to require fee-based license and permit requirements to run a business within the limits of the county.  The amount of these fees will vary and may require an investment of between $50.00 and $1000.00. Typical fees for licensing and permit requirements are $500.00 or less.

The Cost of Authority – The cost of authority in the United States i surprisingly low. As of Jan 1, 2012 the cost of acquiring a Motor Carrier’s Authority is $300.00. For this fee you will receive a six-digit authority number, for example, MC# 000000.  This authority will allow you to operate interstate transport. Your authority will last for as long as you remain in compliance with the F.M.C.S.A .

 Surety Bond – A $10,000 surety bond is required by the F.M.C.S.A. to lawfully operate a freight brokerage in the United States. However this does not mean you are required to put up $10,000; there are many services that will happily put this bond up in your name for a fee of $1000.00 or less. This service resembles a loan and requires a positive credit score by the one who seeks to acquire it. If your credit score is not favorable you may wish to invite a business partner in on your plans otherwise you may be required to put up the entire $10,000 bond yourself.

Operational Cost – The cost of starting-up operations will of course vary between brokerages, budget, and location. However, operational cost in most cases is greatly within the control of the Brokerage Owner. Take this opportunity to create a restrictive budget that only allows only for the upmost necessary expenses.

In many scenarios a new freight brokerage opens within the familiar confines of the home. If this situation seems familiar, your starts up cost are likely relatively low.

 You will need:

  • Telephone Line
  • Fax Machine or
  • Computer
  • Printer

If you don’t already own these items, a thrifty minded entrepreneur could acquire all four of these items for less than $500.00.

Office Equipment & Supplies – It’s rather easy for a new business owner to lose his or her way and overspend with excitement when it comes to building a new home office. Remember, you will need every dime of operational income available to you in the near future. Simplify your dwellings now and focus on your earnings. Do this and there will be time for spending and upgrades in the near future.

Website, Hosting, Email Services – When most people hear website, they think of the high cost involved in production. Well, fortunately this isn’t true anymore. There are websites dedicated to freelancer services that allow you to post a job and pay the lowest bidder a small amount to complete your project. For a thrifty eye, these services are available for less than $500.00. Note: Your brochure, business card, and logo services can all also be obtained through the freelancer services sites mentioned above.

 There may be additional needs, requirements, and cost required for the start-up of your business, needs that have been otherwise neglected within this article, further your research to further understand a day in the life of a freight brokerage owner. 

The True Cost of Starting-up a Freight Brokerage

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