Are you thinking about working as a freight agent? Or maybe you've finished some freight agent training and want to know how to work from home as a freight agent?
Freight logistics is the process of managing the transportation of goods and materials. It includes planning, coordinating and carrying out every part of a shipment. In business, logistics is the management of the flow of resources from the point of origin to the point of consumption to meet the needs of customers.
Working from home as a freight agent can be a good way to get started in freight. It gives you a chance to build your own customer base and set your own schedule. Because you're not tied to one location, you can work with customers in many places.
If you're interested in working from home as a freight agent, there are some essentials to keep in mind. We'll go through them below.
Who is a freight agent?
A freight agent works in freight logistics to coordinate the movement of goods. Agents work with shippers to understand their shipping needs, then find qualified carriers to move the freight.
Once a carrier is found, the load is booked and tracked through delivery. A freight agent doesn't hold their own broker authority. An agent works with a licensed freight brokerage, under that brokerage's own FMCSA authority and a written agent agreement.
If you think working from home as a freight agent is right for you, there are a few things you can do to get started. First, you need a good understanding of the freight industry: how to find and vet carriers, book shipments and track deliveries.
You also need to communicate well with shippers and carriers, understand their needs, research the industry and learn the basics of freight logistics. Then start building relationships with shippers and carriers.
Working from home can also be isolating. To do well, you'll need to be self-motivated, disciplined and organized, able to handle several customers at once, and comfortable working independently.
Working from home as a freight agent has become more common as technology has improved. With internet access, a computer and a phone, a freight agent can coordinate loads from a home office.
A day in the life of a work-from-home freight agent
What does a typical day or week look like for a freight agent working from home? Here's a general picture.
Logistics
Part of the job is coordinating trucks and solving any problems that could affect a smooth pickup and delivery.
Sales
On a typical day, a freight agent may be quoting and negotiating rates with shippers and carriers, calling potential customers and following up on quotes.
Customer support
A freight agent keeps customers informed about each shipment's progress and makes sure pickups and deliveries are scheduled and completed on time.
Challenges shippers face with freight agents
There are a few reasons shippers are careful about which freight agents they work with.
- If an agent isn't familiar with freight or doesn't have adequate training, it's easy to make mistakes that cost the customer money. Shippers want to work with knowledgeable people before handing over their freight.
- Agents who handle many customers can spread themselves too thin and miss important details. Shippers want to know the agent's carriers will actually show up and deliver.
- A freight agent must work with a licensed freight brokerage, under that brokerage's authority, to arrange freight for compensation. Arranging freight for pay without being a broker or working under one is not legal.
Skills and qualities a work-from-home freight agent needs
Freight agents need knowledge of the freight industry, the ability to find and vet carriers and book shipments, the ability to track deliveries, and strong organization. They also need the discipline to work full time from home and an understanding that due diligence on every carrier and every load is critical.
Why become a freight agent?
People become freight agents for different reasons. Some want a career change. Some like the challenge of coordinating shipments. Some want the flexibility of working from home. If you're organized, detail-oriented and good at handling several things at once, freight agent work may be a good fit.
What do you need to become a freight agent?
There are no formal education requirements to become a freight agent. What matters is knowledge of transportation and logistics, strong communication and customer service skills, and comfort with the computers and software used to track shipments, prepare documents and communicate with customers. Training through Freight University covers these basics.
How are freight agents paid?
Freight agents are usually paid a commission on the loads they coordinate, so pay depends on the volume and margin of the freight they handle. Commission terms are set by each brokerage's written agent agreement and differ from one brokerage to another. Income varies widely, and a new agent may earn little or nothing while building a customer base.
What are the hours like for freight agents?
Many freight agents work regular business hours on weekdays. Because shipments move outside those hours, agents may need to work some evenings or weekends. Agents who work from home often have more flexibility in setting their own hours.
Where do freight agents work?
Some freight agents work in a brokerage's office. Others work from home. Agents who work in an office are often employees of the brokerage. Agents who work from home are usually independent contractors working under a written agreement with the brokerage.
Freight agent vs. freight broker
What's the difference between a freight agent and a freight broker?
A freight agent is usually an independent contractor who works with a licensed brokerage to arrange shipments.
A freight broker is a company licensed by FMCSA to arrange the transportation of freight for its customers. The broker makes sure qualified trucks are available to haul the shipper's goods.
The broker is also responsible for the business's financial side, which includes paying carriers and agents, handling claims, invoicing shippers and extending credit.
More on what a freight broker does
Freight brokers connect shippers and carriers. A big part of their job is load matching: making sure a shipper gets a qualified carrier at a fair rate.
Here's how it often works. Brokers post loads on a load board, an online marketplace where carriers look for freight. Carriers search those boards for loads that keep their trucks full.
After finding the right carrier, the broker handles the paperwork and requirements for moving the freight. Brokers usually work with many carriers to find the right rate and service for each customer.
FMCSA and freight brokers
The Federal Motor Carrier Safety Administration (FMCSA) is the government agency that regulates the trucking industry, and it regulates freight brokers too. A broker needs its own operating authority, a process agent filing (BOC-3) and $75,000 in financial security, and must follow the broker rules in 49 CFR Part 371.
What is a surety bond?
A surety bond is a promise from a surety company to pay valid claims when a broker doesn't pay the carriers or shippers it owes. It isn't insurance for the broker: when the surety pays a claim, the broker generally has to pay the surety back. A property broker must keep $75,000 in financial security on file with FMCSA, either a BMC-84 surety bond or a BMC-85 trust fund (49 CFR 387.307).
Benefits of working with a licensed brokerage
Working from home as your own boss has its benefits, but you also need the right support behind you to serve returning customers well. That's where the brokerage comes in. Here are some of the benefits of working with a licensed brokerage as an agent.
1. Access to carriers
Most brokerages have an established network of carriers. When you bring in a load from a shipper, the brokerage's carrier network can help cover it.
2. Expert freight knowledge
Licensed brokerages know their field, and as a work-from-home agent you can learn a lot from them. Their processes for vetting carriers for insurance and operating authority, and for getting complete information from the shipper, can help earn your shipper's trust.
3. Handling more customers
Working with the right brokerage makes it easier to serve more than one customer, because you have the brokerage's systems and support behind each shipment.
4. Payment handled by the brokerage
The brokerage invoices the shipper, pays the carrier and pays the agent's commission. When and how you're paid depends on your written agent agreement and on customers paying the brokerage. Read the payment terms carefully before you sign.
Final remarks
A freight agency can be a good home-based business for people with an entrepreneurial mindset who are willing to learn the work. Freight agents arrange freight for shippers with carriers that have available capacity, working through a licensed brokerage, and are paid a commission under that brokerage's agent agreement.
If you're interested in working from home as a freight agent, start with training. Freight University trains freight agents, and agents trained there may be placed with brokerages in the LFS network, each under its own authority. Placement isn't promised. You can learn more about freight agent placement or contact us with questions.
