5 Key Areas Freight Brokers Must Understand About Traffic Lanes

Freight Broker Traffic Lane

5 Key Areas Freight Brokers Must Understand About Traffic Lanes

Traffic lanes or also called shipping lanes are the most important part of freight brokering any new freight broker must understand and begin with. This is also the area of focus that makes you an income and also the most overlooked part of all freight broker business models. Most new freight brokers and freight agents when starting out in the freight broker industry do not understand traffic lanes and instantly begin to struggle securing daily loads. Make sure when getting started that you look at traffic lanes with great understanding and you focus your plans around this area. Knowing traffic lanes means to you that you know where your freight is and how to begin making money as a freight broker!

A freight broker needs to remember this important rule when building their new broker business, “You’re not trying to move a load, you’re trying to build a consecutive income for the trucking company and your freight broker business.” What we mean by this is when you are getting started don’t always think that your wanting to move a load, and just any load. Look at the industry your trying to do business within and every load available to you and the consistency involved with it when you first set out. As a new freight broker, you want to strategically plan from the beginning and the most profitable traffic lanes within your focused freight industry are your primary target! Below we will explain to you what a traffic lane is.

What Is A Traffic Lane?

Traffic lanes are the directions that freight moves thru on dedicated highways, interstates, and ports. Basically this is the direction freight gets moved thru a shipping channel by trucking companies. Freight from Nashville, TN to Birmingham, Alabama is considered a traffic lane. Freight that moves into Tennessee and the freight that moves back to Alabama is considered a traffic lane for freight. This article will describe below some key features about traffic lanes so you can understand why you must be knowledgeable in the areas and locations of freight that is being moved from location to location. You also need to understand that each traffic lane has a different freight rate and why this is important for you to understand.

1. Traffic Lanes Determine The Cost Of The Freight To Be Moved.

When product is shipped from one location to another the shipping company and the carrier must determine the traffic lane area of where the drop location is and what loads are available to come back. No carrier wants to dead head back without a load so if the drop off location falls into a location that is determined to be difficult to secure getting freight back then this will greatly affect the cost of the freight going in. Usually the freight will be higher priced since available freight coming back is not easily acquired. A good example would be freight moving into Florida will pay more and freight coming out of Florida pays much less since there are more carrier’s available in Florida than there is freight available. One determining factor of this being that Florida is land locked and covered mostly by the ocean. The State also does not produce as much manufacturing and going into Florida and coming out of Florida is considered one way in and one way out. This affects the freight rates of how much a load is paying coming out since there are more carriers available and less shipping. This determination can be used as a reference for why traffic lanes pay different and each State is different. Basically this is a good example of supply and demand determining the rate for which a traffic lane pays for freight movement. As a new freight broker you must learn the States and also learn the Lanes so that you’re not trying to move an average paying load into a State that pays even less coming out. The result would be the owner operator actually could lose money on the entire load.

Also other variables such as terrain, weather conditions, cost of fuel, location of the drop off point from the interstate, and size of town or city and distance to the next pick up location will affect the shipping cost greatly as well. The rule of thumb is if the roads are flat, and there is freight coming out, these are the traffic lane areas most carriers like to move freight within. These traffic lanes usually pay less when moving freight out of since there is a large availability of owner operators. Always keep in mind that each state has different taxes and fuel cost so when the carrier factors the fuel cost in depending the location it can affect the shipping cost. Bottom line is traffic lanes are everything!

2. Plan Your Traffic Lane With Industry Focus.

Planning your traffic lane is where you begin the first steps of building and growing your freight broker business from. A well-defined and planned out traffic lane can create you monthly income with consistent freight. I recently worked on a traffic lane for a shipping customer and it landed me two loads daily, five days a week. Needless to say this is what we always want and this is what will put you into the six figure income bracket working from home as a freight broker agent. Knowing what traffic lane you want to work in and then strategically planning and sourcing the lane to potential carriers for your shipping customers is only the beginning of the excitement of building your freight broker business.

3. Where To Start Looking For Freight?

The traffic lane that you can start to look into for building your freight broker business can be where you are currently located right now. You do not have to look on the other side of the United States to just find freight. Your idea would come from where the carrier is located and for most of us we all know local trucking companies. Where