Currently, there are several possibilities available to those who want to work independently as freight agents. Nonetheless, there are many misconceptions concerning the true duties of independent freight agents. Freight brokers or even other types of freight agents are commonly mistaken for independent freight agents. If you're considering becoming a freight agent, it's imperative that you are well aware of your responsibilities and tasks. Learn more about the actual responsibilities of independent freight agents by reading on.

What Freight Agents Do

After getting training and obtaining their licenses from the Federal Motor Carrier Safety Administration, freight agents connect shippers and carriers.

In essence, freight agents serve as the middleman between a company that needs to send a consignment and a Sydney transport company that can manage the shipment.

The agent recognizes clients and then satisfies their needs by finding a trucker in the right place with the right tools to carry the client's load. Moreover, agents haggle over costs. The agent is also in charge of planning pick-up and delivery timings. Last but not least, a freight agent is in charge of handling any problems that come up during the consignment's passage, like cargo damage or theft.

Differences Between Freight Agents & Independent Freight Agents

According to their similar job titles, freight agents and independent freight agents do essentially the same duties on a daily basis. The only distinction is that independent freight agents are self-employed individuals who serve as independent contractors for freight brokers. Freight agents, on the other hand, work for brokers. Independent freight agents may have greater freedom, but they also may make significantly less depending on the time of year and their network of contacts. Freight agents working with brokers have a more stable income; many of them are even salaried employees with benefits.

Freight Brokers vs. Freight Agents

Although they both operate in the same industry, freight agents and brokers have very different responsibilities. The procedures for turning into a freight agent vs a freight broker are likewise very dissimilar. Brokers are required to get licenses from the federal government. They must also have a bond with them that is at least $75,000 in value. However, because bond issuers provide these bonds to brokers for a charge of between 1% and 10% of the amount annually, they don't have to pay the full $75,000 immediately. Finally, freight brokers will need to obtain both general liability and cargo insurance in the event that something happens to a load.

Freight brokers are in charge of the big picture, whereas freight agents are in charge of specific loads. Brokers pay the trucks after obtaining their commissions from the shippers. Freight agents actually manage the logistics of loading while brokers take care of the rules, liabilities, and payment processes. Many brokers have several freight agents operating under them, especially if the brokerage is significant and well-established. Because they are also independent contractors, some brokers only work with independent freight agencies. Even large brokers, though, frequently use independent freight brokers.

Independent Freight Agent Benefits

Working for a private freight company has many benefits. Independent freight brokers can set their own schedules and do their business remotely. Also, they can engage with a number of brokers and swiftly sever ties with those that they find objectionable. You may make sure that your freelance income originates from clients who pay on time by carefully choosing the brokers you work with. You can also change up the tasks you take on to expand your skill set and learn every aspect of the freight brokerage industry.