It’s a Great Time to be a Freight Broker
Shipping is an industry valued in the billions, both in dollars and in tons of cargo being moved on a regular basis. And that number is steadily increasing. With the rise of shipping, a few opportunities come along both domestically and internationally through freight brokers. Freight brokers are a kind of middleman between businesses that need to ship supplies and carriers willing to move those supplies. They make their money by either managing ltl shipments (also known as less than truckload shipments, which deal in smaller freights) or tl shipments (truckload shipments, which are reserved for larger freights).
These brokers are currently making a killing in the market. Almost one-quarter of all freight tonnage that has to be hired can be attributed to retail sales. This is according to the president of the SJ Consulting Group, which is a transportation and logistics company. In addition, the Department of Transportation estimates that the value of freight will be rising by about $500 per ton by 2040. That’s a lot of extra cash to look forward to in this industry.
These transportation brokers can also specialize in the type of carrier that moves product for a business. There are several different kinds, with over 12 million reported carriers currently within the United States. These can include the obvious trucks and rail cars, but also extends to locomotives and other vessels such as boats. Each vessel has its own pros and cons, with trucks being the most popular for moving freight distances of 750 miles or fewer. Rail cars are preferred for much longer distances and can hold heavier shipments as well with no issues. It all depends on what the business prefers. A broker simply makes it happen.
Freight broking is by no means an easy industry to get into, as it takes a lot of moving parts to make sure everyone stays happy. Whether it’s the business, the freight drivers, the shipment transporters, or the customers actually receiving them it can be a lot to handle. However, with the value in shipping only increasing with time, they won’t be packing their own boxes anytime soon.