A Guide on How to Become a Freight Agent

In logistics and transportation, the role of a freight agent is crucial. If you’ve got an interest in this area, read on to learn how you can become one.

There’s no better time to become a freight agent than now.

It has become very clear the crucial role a freight agent plays in the logistics industry.

So, there’s an increasing need for new agents in the freight industry.

If you’ve been eyeing a spot in this sector, rest assured it can be a rewarding career path.

But to be involved, you have to first know what it takes to be successful as a freight agent.

At D&L Transport, we offer freight agent opportunities to help interested individuals join our team.

We offer a full Freight Agent Program created to support new agents in the logistics industry.

We offer one of the best commission payouts in the industry. Agents can enjoy 70% commission on both truckload and less-than-truckload shipments, with payments made weekly.

In this article, we want to show you what you need to know to become a successful freight agent.

Keep reading to learn more.

What is a Freight Agent?

A Freight Agent is someone who independently handles the transportation of goods for shippers.

Their work is to negotiate with carriers to arrange the pickup, transit, and delivery of the cargo.

This means that they’ll manage logistics details, ensure fast delivery, and maintain communication with both shippers and carriers.

This role is critical in the shipping industry because it directly runs the operational aspects of freight movement.

This independent contractor is responsible for connecting shippers with carriers, ensuring that every cargo reaches its destination smoothly.

The Difference Between Freight Agents and Freight Brokers

Freight agents and freight brokers are usually confused with each other.

They play vital roles in the logistics business, but their responsibilities and operations differ.

Freight brokers operate mostly on the legal and financial side of shipping. They are licensed through the FMCSA (Federal Motor Carrier Safety Administration).

Freight agents, as we’ve stated earlier, run the operational side of logistics. They are not licensed.

Freight agents maintain client and employee relationships. But they work under a freight broker or a parent freight company.

How to Become a Freight Agent

This is as straightforward as anything else. All you need to become a freight agent is to first have an interest in the business.

Then, the initiative and applicable skill set in logistics.

But the fundamental skills you must have to become a freight agent are:

• Excellent communication
• Time-management and
• Organization skills

It’s helpful to have an existing relationship with different shippers and some useful industry experience.

Your main journey begins by finding a trustworthy freight broker or a parent company with a strong financial standing and a reliable market presence with which you can partner.

If you can secure that, the next step is to set up an office and start hiring employees, if necessary.

At D&L Transport, we provide our agents with the tools needed to succeed.

We are a proud member of the Transportation Intermediaries Association (TIA) and adhere to its strict code of ethics.

So, partnering with us provides you with the support system you need to work effectively with shippers and carriers.

The Role of a Freight Broker in Your Success As an Agent

To have a successful career as a freight agent, you must understand the freight broker’s role you’ll be partnering with.

Properly understanding the unique roles of freight brokers and agents will help you to succeed in the logistics industry.

One of the roles you must recognize is that freight brokers, who are licensed through the FMCSA, are legally responsible for the cargo.

Also, they handle many of the regulatory and liability aspects.

So, as a freight agent with this understanding, you can focus more effectively on the customer service and sales side of the business.

It’ll also encourage you to build the right skills and strategies for your role so you can have a more productive partnership with freight brokers.

How Much Do Freight Agents Make?

Freight agents make a lot of money. But it’s not fixed. Their earnings can be $58,000 to over $100,000.

The amount differs based on how it’s paid, whether hourly, annual, or commission.

If the pay is commission-based, then the earning is determined by the amount of money the freight agent generates for the freight broker.

At D&L Transport, we pay our agents a 70% commission, which is paid weekly.

The possibility of earning beyond six figures is unlimited due to the commission structure and other advancement opportunities.

What Do Freight Agents Actually Do?

Freight agents help move goods from one place to another. Their jobs change from day to day, and things can move very fast.

One day, they might be finding new customers or talking to truck companies to agree on prices.

Another day, they might be making sure deliveries happen on time.

They have to stay organized and pay close attention to details because they’re in charge of the whole shipping process.

They ensure customers feel at peace knowing their shipment is being handled properly.

They don’t only manage logistics. They also build trust with both the people who send the goods and the ones who deliver them.

What’s It Like Working as a Freight Agent?

Freight agents do a lot of behind-the-scenes work to make sure everything goes smoothly when something needs to be shipped.

They’re the middleman between the person sending the goods and the one delivering them.

A good freight agent is someone who can:

• Handle a lot of complex logistics at once
• Keep customers happy and answer questions
• Deal with the administrative side that comes with shipping

How Does a Freight Agency Work?

Freight agents don’t own the trucks or planes. Instead, they sell shipping services to customers.

Even though they’re doing most of the work, the parent company (a bigger freight broker) sends the bills and official messages to the customer.

The parent company also helps by covering the agency with insurance and letting the agent use their good reputation.

In return, the agent and the parent company usually split the profit or work on commission.

Freight agents are paid as independent contractors (this is called being a 1099 worker).

That means they don’t get a regular paycheck like an employee.

They have more freedom in how they work, but they usually need help from an accountant to manage their money and taxes.

Conclusion

That’s it! Everything you need to know about becoming a freight agent.

Working as a freight agent can be rewarding and enjoyable and foster growth.

To be successful, you have to work with a reputable parent company like D&L Transport.

We provide the experts you need to work with and a management team with over 70 years of experience.

To learn how much money you can make and take the next step in your career, connect with us today!