With the ever-growing e-commerce industry, the demand for freight brokers is only increasing. Online shopping requires more efficient and reliable shipping, which freight brokers can provide. In addition, the current shortage of truck drivers is also driving up the demand for freight brokers.
Before getting into freight broker training, let’s see why freight brokers are in high demand.
Why Are Freight Brokers in High Demand?
The trucking industry is booming, and freight brokers are in high demand. Here’s why:
- According to the American Trucking Association, the trucking industry is projected to grow by 25% from 2010 to 2020.
- As the trucking industry increases growing, so does the demand for freight brokers. Freight brokers are the middlemen who match trucking companies with shippers who need their goods transported.
- With more goods being shipped, there’s a greater need for freight brokers to coordinate these shipments. And as the trucking industry becomes more complex, with more regulations and paperwork, freight brokers are needed to handle all that paperwork and keep track of all the details.
- Freight brokers are also in demand because they offer a valuable service to trucking companies and shippers. They save both sides time and money by finding the best match for each shipment.
- And as the trucking industry continues to grow, the demand for freight brokers will only increase. So, consider becoming a freight broker if you’re thinking about a career in the trucking industry. It’s a perfect way to get started in the industry and a career with a lot of growth potential.
Why Do Some Freight Brokers Fail in This High Demand Industry?
There are many reasons why freight brokers fail in this high-demand industry. The most common reasons are:
- When it comes to experience, many freight brokers start out without any real experience in the industry.
They may have worked in logistics or transportation before, but they do not understand all the freight business’s ins and outs. This lack of experience can be their downfall, as they may not know how to properly negotiate rates with carriers, find the right loads, or properly manage their business.
- They do not have a good business plan. A good business plan will outline the freight broker’s goals and how they plan on achieving those goals. Not having a good business plan will be very difficult for a freight broker to make a profit and stay in business.
- They do not have the right financial backing. Freight brokers need to have enough money to cover their operating expenses and have some money set aside for unexpected expenses. If a freight broker does not have enough money to cover their expenses, they will quickly find themselves out of business.
- They do not have a good marketing strategy. A good marketing strategy will help a freight broker to get their name out there and attract new clients. Not having a good marketing strategy will be difficult for a freight broker to grow their business.
Because of the high demand for freight brokers, many new brokers fail in this industry. There are several reasons why this happens. Many new brokers do not have the experience or knowledge necessary to succeed.
Many new brokers do not have the financial resources necessary to sustain their businesses. Many new brokers do not have the connections or relationships necessary to build their businesses. To build a career as a freight broker, get freight broker training.