Starting a Freight Brokerage Business

This short article gives you a run down of the things you need to know prior to setting up your own freight brokerage business. Gain insight on the industry and its rudiments. Know what freight brokerage business is. Know the skills and requirements to manage a freight brokerage business.

Mammoth is a word that best describes the range and scope of the freight industry as a whole.

Everyday, everywhere, asset owners mobilize their cargoes from point A to point B. In essence, the freight broker functions as a bridge between the shippers and the movers. They find means and ways to unite shippers and their load with carriers and their empty container trucks thereby enabling the transport of cargo from one location to another. As a reward for this effort, freight brokers receive a commission for every deal they close.

Becoming a Freight Broker

Some brokers get agents (contractors that act in their behalf) to work for them. Agents are useful particularly in cases where the geographic range of the brokerage operation is extensive. Agents are most often than not, home based. There is not much they require to start-up; a phone, a computer with internet connection, a fax machine and that’s about it.

Ask any freight broker and they will say that the best way to understand and learn the technical aspects of the freight industry is to gain some sort of work experience from a shipper, carrier, or both. Aside from acquiring a working knowledge of the trade, this will also help you beef up your network. Note that the key to success in freight brokering is the quantity and quality of one’s contacts.

Even better, try to secure a position as an agent since an agent’s job is very similar to that of a broker. The only difference is that the latter is the one in charge of the bills.

Don’t bite off more than you can chew

Once you feel that you have the necessary knowledge and you are ready to venture and start your own freight brokerage business, your next step is to choose your market niche. Tip: It is better to be prudent at this point.

Tailor fitting your marketing thrust towards a specific section of the market is a win-win for both you and your clientele. Your market will most likely get the service they need, at the same time this allows you to learn the ropes without feeling as though you are in over your head.

In choosing your market niche think about the types of shippers/shipments you want to deal with. Note that not all markets are the same, some are easy to handle while others require special attention—perishable commodities or oversized/heavy equipments for example.

Where, oh where?

The wonderful thing about the freight brokerage business is that you can run it from the comfort of your own home. The implication is that your start up cost is almost nil. Most freight brokerages began as a home based operation—eventually transferring to a commercial space after garnering a decent number of clientele.

When working from home, consider having a separate work area. This is infinitely better than working at, say the dining table, where surely disruptions galore. Make sure you have all the necessary tools and equipment within easy access. This will enable you to work more efficiently.

41 Comments

  • syed munir ali said on July 18, 2010
    i want to start freight brokerage from china, new zeland singapore, & middle east
  • pradeep gupta said on March 11, 2011
    my name is pradeep gupta, i am from india, delhi. i want to start a business of freight forwarding. so plz tell me how to start which document is required to start a business.
  • Lav Agarwal said on August 18, 2011
    Hello, Myself , I am Lav Agarwal, I completed my course in shipping and logistic. I am interested to start a freight forwarding company in Aligarh (U.P). Please tell me what is basic things to start this company. please sent the mail as soon as possible Thank you
  • kelvin said on March 19, 2012
    how i can start my own clearing and forwarding company in Dar es salaam Tanzania? Also what are the procedure i can start with?
  • Rosie said on April 5, 2012
    Pls help me find where to take a course on shipping and logistics and also how to set up ship forwarding company in Los angeles thank you
  • muhammed ashraf said on June 18, 2012
    hi my name is muhammed ashraf i am looking for a new freight forwarding license in saudi arabia so please advice how i can start
  • TINASHE said on July 11, 2012
    Hello,how can i start freight brokerage from dubai, china & singapore. i am a zimbabwean resident
  • Remy. said on July 14, 2012
    Please, what are the steps i require to register as a clearing and forwarding agent in Lagos, Nigeria.
  • B.Siva Kumar said on August 15, 2012
    I have my own travel agency in Vizag , Andhra Pradesh , India . How I can take up the fright brokerage from Vizag covering southeran states in India. Provide me the procedure to start up, registration details and other information needed.
  • Muideen Kazeem Olanrewaju beginner adviser said on August 17, 2012
    @B.Siva Kumar, All you need is research on the internet to look for both ends and match them up for your commission.More later.

    thisiskazeem@gmail.com || 2348033670493 || Consultant

  • Raymond said on August 23, 2012
    I'm interested in starting a freight brokerage
  • globalunited cargo and logistics said on September 18, 2012
    my name is uzoukwu chinedu c, i am from NIGERIA, lagos. i want a partner to start a business of freight forwarding. so plz contact me if you are interested from india so that we can join hand together. my very good details are, uzoukwu chinedu cliff, +2348188173040,+2348023284298, globalunited98@gmail.com
  • madhu 09916800007 said on December 8, 2012
    currently running distribution and superstockist business looking for clearing and forwarding business. Madhu chandan, 9916800007
  • Ikechukwu Daniel said on January 17, 2013
    Hello, My name is Ikechukwu Daniel, i am from Nigeria. I need steps and guide to freight forwarding business here in my country. I.k
  • Pankaj Gupta said on February 2, 2013
    I have completed export import course i want to start my freight & forwarding business in mumbai. kindly let me know if i want to start my business what are the documents required to start the business any licenses need to be taken from any of the authority.
  • Garjuean said on March 9, 2013
    i live in MN i want to get a ship forwarding lic plz contact by email or 612 221 5448
  • ONAFAYO SHOLA said on March 19, 2013
    Am a man of 32years of age am working under one companies in Nigeria works as a clearing agent. Am a Nigeria citizen, my state is Ogun State. I want to be connected internationally, with Bigs Logistics Cargo companies Worldwide
  • Rajees said on June 26, 2013
    my name is Rajees, i am from india, Kerala. i want to start a business of freight forwarding. so plz tell me how to start which document is required to start a business.
  • Obioma W. Friday said on July 1, 2013
    I am a Nigerian based here in USA, Arizona to be presided. I am looking forward to start courier/forwarding business from USA to Nigeria, and vise versa. I am also looking for a shipping company and an airline to attach myself to. I have a lot of Nigerian clients who are ready to be bringing things to Nigeria. I am looking for an experienced person who is already in the business. Contact me at my email or my phone number - 1804-503-7857.
  • Kezious Davies Ziwa said on August 29, 2013
    hello, myself, I'am Kezious Davies Ziwa living in Lusaka,Zambia. I am currently running a clearing and forwarding firm by the name of Lake Express Limited within Lusaka, Zambia. I'am planning to open up a branch in Dar es Salaam, Tanzania in clearing and forwarding therefore, how I can go about setting up this projects? any information about this issue shall be appreciated.
  • khatuna Khorava said on September 15, 2013
    Hi I'd like to open mail and cargo forwarding service in Georgia, Caucasus I'd like to organize delivery cargo and mails from US, Europe, China, Russia. I'll be appreciate of getting your advice. my tel 995 5 77 765 965
  • williams said on January 2, 2014
    i am arinze from nigeria, i want to start up a freight company that runs between china and nigeria pls help me in terms of documents required. pls reply to my email
  • Asif said on January 6, 2014
    Hello, Myself , I am Asif, I completed my course in shipping and logistic. I am interested to start a freight forwarding company in kochi(kerala). Please tell me what is basic things to start this company. please sent the mail as soon as possible Thank you
  • charles vianney said on January 29, 2014
    i would like to start up a clearing and forwarding company
  • allen said on January 31, 2014
    I would like to start a logistic & freight forwarding business in dubai. i need the basic start up knowledge and complete working of it.
  • Emmanuel Osho said on March 26, 2014
    @Allen, for purpose of mail feed back...you can send in a mail to: vibraconsulting@inbox.com
  • Nontobeko said on March 30, 2014
    Hello my name is Nontobeko Shange from South Africa, me and husband his from Canada would like to start a freight forwarding company in Canada. We need a basic start knowledge to start our business.
  • Ajish Abraham said on May 30, 2014
    Hi, I would really like to start a logistic & freight forwarding business in Cochin, Kerala, India. Can you please explain me the basic start up knowledge and complete working of it. Ajish
  • Ajay said on June 2, 2014
    hi, i am trying to start my freight forwarding and international courier company in India. Can you please suggest me the compulsory documents required to registers and the working knowledge. thanks and regards, Ajay Tiwari
  • J.S.TIWARI said on June 6, 2014
    DEAR SIR, WE ARE DOING SERVICE OF FREIGHT FORWARDING AND CUSTOM CLEARANCE AGENCY IN NEW DELHI/INDIA .WE WANT TO OPEN OUR LOGISTICS COMPANY IN NEW DELHI. WHAT IS THF FORMALITIES OF REGISTRATION WITH RBI AND INDIAN CUSTOMS. REPL ASAP.
  • Iftikhar Ali Hasan said on July 19, 2014
    hi, am looking to start a freight broker business from home in the uk. Could you please advice me on license requirements and business plan. Thank you
  • zubaid ullah meer said on July 26, 2014
    dear sir, we are registered transporters in Pakistan we have our office in Karachi Pakistan. we need your advice and guideline for manage our business in pakistan and afghanistan
  • Jamil ur rashid said on September 19, 2014
    I want to know how I start this business
  • Ali said on November 13, 2014
    Hello, I completed my course in shipping and logistic. my experience 15 yrs in pakistan freight forwarding I am interested to start a freight forwarding company in pakistan. we need business co-operation & joint venture (JV) type. please send the mail as soon as possible. Thank you
  • reetika said on November 16, 2014
    hi i needed to know how much it would cost me fr initial start as i am starting this business in dubai . What are the government papers required here.
  • Sheryl gordon said on November 26, 2014
    Hi would like to start a business in queens new York
  • VISHWANATHAN PILLAI said on January 2, 2015
    COCHIN, KERALA, INDIA. INTEND TO START CLEARING AND FORWARDING BUSINESS IN COCHIN SO WHAT ARE THE PROCEDURES TO BE DONE
  • jaimon jose said on May 14, 2015
    cochin .kerala.india .to start clearing and forwarding business in kochi .so what are the procedures to be done.
  • yudi said on July 6, 2015
    Dear all, i am planning to start up my own clearance and forwarding business in mumbai. i have warehouse in bhiwandi and taloja (navimumbai). i would be very new to this business...i need a help or suggestions on how to get clients and from where to clients in mumbai, pune...your response would be highly appreciated. Thanks, Regards, Yudi
  • Rzwan said on July 29, 2015
    I am planning to start up my own forwarding business in Karachi, Pakistan. I have no experience in this business.
    1) I would need a help or suggestions on how to get clients from, and which market should i select.
    2) Is there any possibility that without any operation person i could manage all the issues first, and then hire some one in operations later on. What about income possibilities, how much one can earn, any ideas.
    3) I know one company, based at dubai, 2 years experience, is it better to start with that Company name, here at karachi, or shall i start by my own name.
    4) Is there are professional marketing companies which can market you, and we can take there services for marketing my company. (i meant outsourcing)
    Your suggestions and your quick response would be highly appreciated. Thanks & Best Regards, Rizwan
  • David said on September 3, 2018
    i am davd by name and in Nigeria doing fright forwarding business and need partners from Europe, Asia, America, middle east and Africa anybody willing to do business with me should mail me on breavehat2012@gmail.com

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