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For more details about these news items or our Freight Broker Training School, call us at (214) 206-1169.

Articles:

Recent articles from our blog (click here to read all freight broker articles, tips and news on our blog):

Tough Times for Brokers

Franchise-like Business

Voice Altering

90-10

A New Start

Online Marketing

Freight Broker Dictionary

A Hard Lesson from my mentor Krish

Increase Your Sales in a Few Days

Why Bid High?

Jump the Sales Slump

Archived articles:

Should a Trucker Be a Freight Broker?

Get the Training That You Need to Work from Home

Price Trends: Pricing Across the Transportation Modes

From Trucking to Freight Brokering

New Services

Bryan Flanagan Teaches for BTTS

Ask the Expert: What Do You Think about the Petition by OOIDA to Raise the Broker Bond?


 

Best Time for the Best

By Jeff Roach

Anybody can succeed when the economy is popping. When things are not spinning like a top, that is when the best shine. Lots of companies have had to make cutbacks. Who are the first to go? The underperformers of course, then the new hires and those close to retirement. Only a foolish CEO would let go of a top performer. When it is harder to land business that is when you need those who keep on working hard, moving forward with integrity and professionalism.

The same goes for freight brokers and carriers. Those who perform consistently, with integrity, succeed even in a down economy. So I'd say it is the best time for the best. The best time for professional, ethical brokers, carriers and training schools.

This business is complicated. Education is a key to success.

I've been talking with some of the brokers who hire agents from among the Brooke Transportation Training school graduates. They are doing great. Why? Because they are well trained. They understand the process of getting business and working that business so first time customers become customers for life. They've learned how to weather any economic climate. Don't be afraid of being knocked down…just get back up.

I'm very proud of our graduates who get out and put to practice what they learned in our quick but effective training program.

As freight brokers, our job is to educate both the shipper and the carrier. Because of the rising cost of transportation we will have to raise rates or more trucking companies will go under. There is a huge shortage of carriers today. For every three loads there is one carrier to move that load. We have to work together in helping carriers stay afloat so we brokers can do the job of moving our customer's freight. Carriers often come to our school and gain great knowledge of how to be a better carrier for brokers. They are taught to know if or when it is the right time to start their own brokerage.

Freight Brokering is consistently one of the top picks as a work from home opportunity with the most potential for great earning. The cost to get in is minimal compared to the cost of getting in most any other business. For way less than the cost of a franchise you can have your own freight brokerage. Most of our graduates start as an agent for a larger brokerage then may strike out on their own if they desire. It is very similar to being an insurance agent. Some stay under the State Farm name others become independent insurance agents.

It is a tough time for lazy brokers but a great time for ethical, hard-working brokers.

Professionals are developed through training and experience. We all have God given talents. We each chose to develop those talents or to loose those talents.

  1. Attitude is everything
  2. Perseverance is a close second
  3. Focus on progress, not perfection.

 

Tough Times for Brokers

I read an article by Rip Watson about the high bankruptcy rate among freight brokers in Transport Topics. I try to focus on positives not negatives but the reality is that the economy has been tough on most entrepreneurs. I truly believe greatness can arise out of tough times. A while back I blogged about how many incredibly successful businesses were birthed during the Great Depression. What we’ve been going through is nothing compared to then.

I imagine most freight brokers would have had a fighting chance had they gone through my course. I’m not being boastful I’m just looking at successful brokers. When my instructors aren’t instructors they are brokers and they are doing well. Very well. This is why training is so important. This is why the military trains every day for a mission.

The more you learn the more you earn. I have consulted with brokers who are putting out unreal numbers and I can honestly say they have happy customers and happy carriers. I was amazed at the gross margin numbers every day.

I believe in any market place - The guy who knows the most, who is the most informed and the most connected to the industry will be the last business standing. Standing pretty tall I may add.

Learn to negotiate. The good news is we can learn anything. If you don't like where you are in life, change it. Change starts in your brain. What you put in your brain everyday affects your actions. After you fill your brain with great stuff …Take action.

My online course is in 2300 schools and universities and my freight broker / agent course is in 4 states and is more important to you now than ever. Our training teaches a proven process towards success for a broker. Our course is filled with motivation. And in our course you’ll meet others that will help spur you on.

More on Monday.

Moving forward,

Jeff Roach

Franchise-like Business

Freight Brokering as an agent is a real chance to own a franchise like business without paying the franchise fee. If you come to my school – you will be recruited by the industry leading Freight Brokers to become their agents and get the support you will need to get your business done. This is not a get quick rich scheme, it is an opportunity to have a real career with your own business.

If you have the  cash and want to build a brokerage and bring on 1000 agents, I can help you  with that too.  Our class will teach you how to own your own freight brokerage. I know how to do this because I’ve worked in the industry for over 20 years. I know what systems need to  be in place for an investor who wants to build a "non-asset business" with  extremely LOW fixed cost.

The freight broker business is  booming, a great investment opportunity.

I specialize in  helping companies grow their company as a part of the team. My passion is to create passive residual  revenue streams doing honest work. I love teaching others how to do it.  

I love strategic alliances that are done on a handshake. Feel  free to contact me with all small business questions and concerns and  especially if you want me to help you on your project or if you want to help  mine.
I love to talk to entrepreneurs, investors, and venture capitalist.   

Our mission is to educate and motivate the go getters and go  givers.
 
You can do this work from anywhere you have a computer and I will tell you now that our process works if you do. We are associated and do business with the top industry vendors, carriers, brokers, educators plus I will tell you what to do to reach your goals in this business. I have made a lot of good decisions and I have learned from my poor decisions. Let me earn you business. I will if given the chance.

Call Jeff and get the straight skinny on whatever you need to or want to talk about. I will get to your call as soon as possible.

I will be offering more to my shippers and so will you if you come to my class.  

Jeff

Voice Altering

As a freight broker, trainer and salesman I spend a lot of time talking with people on the phone. Just saw an interesting segment on voice coaching. I do some business coaching of freight brokers and other executives by phone. This piece caught my attention and made me think about the image I project with my voice. Here are excerpts:

Most people admit they can't stand hearing their own voice, but what happens when how you speak defines the way people perceive you? "It's OK for everybody to sound different," says celebrity voice coach Roger Love, "but we're supposed to be the best we can be within that difference."

Roger shares his three tips that everyone should know if they're looking to improve their voice:

• Melody. "Most of us speak like we're one note on a piano. A piano has 88 keys -- you gotta touch some of the other keys! You gotta go up, you gotta go down and you have to practice that. Melody is key."

• Volume. "We've become a world of whisperers. We're talking to everyone like we're not public speakers. I say we are all public speakers. You might be talking to one person or your dog -- they're your public. You don't have to have a thousand people. We are all public speakers the second it comes out."

• Breathe. "Most of us are holding our breaths when we speak. You should breathe in through your nose, not your mouth. When you breath in through your nose it sends moist air to the chords. Pretend you have a balloon in your stomach. Fill up the balloon, and then when you're speaking, the whole time you're speaking your stomach is supposed to be coming in. If it's not, then you're holding your breath."

This article also shows how this voice coach helped 3 woman. One had a baby voice, one had a manly voice and one had a heavily accented voice. Their retooled voices gave them a new confidence. To read more click here.

I found that quite intriquing. I speak loud for sure and with lots of melody. I’m pretty sure I don’t hold my breath while I speak but I do have an accent. I often have students with interesting accents. Our voice differences are interesting and make us unique but when your listener has much trouble understanding what you are saying perhaps you should consider a voice makeover.

Moving Forward,
Jeff Roach

90-10

Thought this was a good article on the effectiveness of online learning. I think a person needs to choose what method makes sense for them. Some people enjoy the class room interaction. Some can't sit in a classroom for a week for a variety of reasons. For that reason I offer both online and live classes. Have a read and see what you think.

Adapted from “e-learning the 90-10 Solution”
by Bob Livingston

How much of the training in an organization can be done on-line? In a recent conversation, an executive concluded that all training could be done online. Others have offered opinions that run the gamut of percentages. Most run between 40% and 60%. And yes, there is still the occasional person who believes that e-learning can't do anything well. My own conclusions put it more at the 90-10 level.

Great online training can provide a learning experience that will provide the same results as great classroom training. However, the program must remain sound from a learning standpoint to reach this level of accomplishment. Online courses must have that right blend of involvement and reflection that makes the classroom so important. That is missing in many courses. Involvement is limited, and any reflection on the material is almost non-existent. There no longer exists any technical reason why these can't be included. That's why I think the number is at, least, 90%. What is the 10% that can’t be learned online? Skills that demand actual person-to-person practice. Sales skills and team skills are the first that come to mind. Concepts can be taught on-line, but you have to train the skills in the field.

Team skills require a classroom to promote the bonding required when the learning takes place. That's it! Field training and bonding! I believe we are at a point where 90% of training can be accomplished online. What do you think?

Moving Forward,
Jeff Roach

A New Start

I enjoy articles that recognize trucking as an industry that weathers economic storm. In a modern society we will always produce goods in one part of the country that need to be shipped to another part. It is not feasible economically to have a plant everywhere there are consumers, you can’t grow certain fruits and veggies just anywhere and unless we all go out a buy a chicken we need to get our eggs shipped from farm to market so we can make an ommelot every now and then. Here’s the story of a guy in Amarillo, Texas who changed industries in light of the current economy.

A New Start
Shaky Job Market Drives People to Trucking

After five years at an oilrig, Ben Touchstone was laid off. Leaving him, like many others, looking for a new start.

"I read the newspaper everyday, everyday I'd find four or five places that needed a truck driver," he said about his job search. "And all of them required a CDL."

Which led him to Amarillo College's Truck Driving Academy. The school prepares students to get their commercial driver's license (CDL).

"Once you have the CDL you can drive a school bus, a greyhound. You will have license to do that," said Robert Mathews, Truck Driving Academy Director of Operations.

Elen Harding joined the class to become a bus driver when her career in nursing took a wrong turn.

"I decided since that's not working out, I'd go here and do something different and make a better life for myself," Harding said.

"People want to go to work. You tell me where you can go for six weeks and come out with a profession," said Mathews.

Mathews says his classes remain full because of the high demand for truck drivers, especially in our area.

"This is I-40 corridor, everything goes past here from coast to coast," he added.

For Touchstone, who has been out of work since November, the opportunity of work is something he doesn't want to pass up.

"I just want a job," he said, “a job in an industry that won't run dry.”

In my decades in this industry I’ve seen shortages of trucks and shortages of loads. As a freight broker you work with both sides. Many truck drivers drive for a while then when they want off the road some they train to be freight brokers. No training is ever wasted because it gives you more options and keeps your brain muscle in shape. Now is a great time to learn something new, switch careers and start a new adventure. It may be scarey but worth working through the fear.

If you are even considering any job in the transportation industry, give me a call. I’ve worked in most of those jobs and love to talk about my experiences. Have a great week as we reflect on approaching Easter.

Moving Forward,
Jeff Roach

Online Marketing

July is Brooke Transportation Training’s biggest month typically. So if you’ve been thinking about joining us in July to start a new future in freight brokering, sign up now.

“The course not only helps you learn about the freight brokering business, it also helps you improve other areas of your life. The confidence built in me alone pays for the class. Even if I never become a freight broker I think the class was worth the time and money I spent on it. Thank you.” Jose G

Freight Brokers are in high demand because no matter the state of the economy, goods must be shipped across country. Our economy is thriving so now really is the time to train for this exciting career. Freight Brokers match loads with trucks to move those loads. In Freight Broker Training you will learn the ins and outs of this business. Learning to find goods and the appropriate truck is only the beginning. We will teach you about insurance concerns, accounting, tracking, internet tools, sales inspiration and more. So come join us in Jacksonville Florida or Dallas Texas to train for a bright future.

There is no greater thrill for me than seeing a student succeed.

Moving Forward,
Jeff Roach

Freight Broker Dictionary

After you’ve been working in this industry or any industry for that matter you use terminology and acronyms that are industry specific. I’ve started putting together a freight broker dictionary of terms students have asked me to define. If you hear a term you don’t understand tell me, I’ll shoot you a definition…or tell you I don’t have a clue what that means. Here are a few starter words important to understand as a freight broker:

Truck Supply or Truck Capacity - the availability of equipment for any given period.

On the fence - an empty trailer or tractor sitting on the

Loaded miles - trucks running with freight

Fuel surcharge – bonus paid to the broker then to the carrier to transport a hard to transport load.

Bid Package - forms a shipper will ask a broker to fill out to compare their rate per mile and other offerings to that of competitors. Each shipper has a unique package.

Spotted Equipment/spotted trailers - empty trailers left at a shipper's dock door to be loaded or unloaded at a specific time (=extra warehouse space for company)

Headhauls and backhauls, and hot zones - places and cities where you can find a truck easily and places you can't.

Moving Forward,

Jeff Roach
www.brooketraining.com

A Hard Lesson from My Mentor Krish

Of all the advice I have been given over the years this may very well be the hardest one for me.

"Forgive those who hurt you while thanking them for the experience".

Krish Dhanam, Brooke guest speaker and mentor, says the unwritten part of this statement is that you do not thank the offender in person for the pain they have inflicted on you, you must thank them and forgive mentally. Unforgiveness does not hurt anybody but you because holding grudges fills you with bitterness. Forgiving gives freedom. Pain produces growth and maturity, for that we are thankful.

Forgiveness without gratitude is like a pen without ink. It is a good idea but actually worthless. God himself forgave us with grace and mercy for an eternity filled with promise. Hans Selye, the great stress specialist, said gratitude is the most beneficial of all human emotions and anger and resentment the most destructive. Mahatma Gandhi said " an eye for an eye will leave the whole world blind.

These words came right out of Krish's book, The American Dream from an Indian Heart. I can tell you, I do not have this principle down yet. I am trying but not there yet. Thanks Krish for reminding me.

Funny thing about Krish - I have never left a meeting with him feeling bad. Whenever he comes and speaks to the Brooke Training class, all my students tell me the same thing.

Thank you Krish! (krish@krishdhanam.com)

Moving forward,

Jeff

Increase Your Sales in a Few Days

I’ve been in the transportation industry for several decades. I’ve learned a lot working for top freight companies. I built my own highly profitable freight brokerage and now I find joy in teaching others. I can get your company on the fast track to freight brokering with some customized consulting.

I specialize in working with owners to increase sales. In a few days I’ll evaluates what really is happening in your company, makes changes and or suggestions, train assisting staff and often implement new commission based programs. I will consult one on one with the owner of the company.

If you prefer, in a week I can set an entire brokerage in your office, including an accounting office, sales office, operations office, technology, etc. I truly find great contentment in helping others find their pathway to success.

Costs:

Consulting $5,000 per day in your company
Consulting $2,500 per day at Brooke’s Dallas, Texas location
Brokerage set up $25,000
Hourly Consulting $625 per hour

The investment will quickly pay for itself through increased sales and streamlined processes.

If you are interested contact me at jroach@transportationtraining.com

Moving forward,

Jeff Roach

Why Bid High?

You really want to get a load, why on earth should you bid high? When quoting rates, you will learn quickly to build in a cushion - always estimate high. Bid at least 5-10% more than the job will actually cost. That way, when you present your final quote to the shipper, you can easily be lower than the price that you quoted. By doing this, you have also built in a safety net in case your estimate is off. Remember, things change from minute to minute in this industry. It is always better to present an actual bill that, at the very least, is less than the quote. If the actual cost is less than your estimate, be sure to charge your customer the lower amount. Keeping the difference is not as important as keeping your customer.

For example, I had a customer who needed an inbound rate from Georgia to Texas. I knew that my competitor's rate was $200 lower than mine. I also knew that I would be able to get the shipment moved whereas my competitor with the lower rates couldn't cover the freight. A low rate is worthless without service to back it up. I would much rather be a hero than a zero.

Moving forward,
Jeff Roach - President
Brooke Transportation Training Solutions

Jump the Sales Slump

An edited excerpt from "Now Go Sell Somebody Something" by Bryan Flanagan

Sales professionals have something in common with professional baseball players… slumps. Ball players have batting slumps, sales pros sales slumps.

Let’s look at six methods to shorten the length of theses sales slumps (if you allow a slump to last too long you will walk around your office looking like the picture on your driver’s license! That’s not a pretty sight.)

1. Return to the basics. What activities were you doing when things were going well that you are not doing now?
2. Keep a mental victory list. Remind yourself of your past sales success and victories. Think in terms of persistence, you selling skills and your sensitivity to meeting the needs of your prospects.
3. Visit a satisfied customer. Contact them so you will be reminded of the good service you have provided.
4. Enroll in “Automobile University”. Plug a motivational CD in while you drive. When you are in a slump you need pure, clean, powerful and positive brain food.
5. Develop selective memory. FIDO forget it and drive on. Don’t focus on past problems; focus on your major strengths.
6. Don’t compare your Abilities to Your Experiences. You have no control over most of what happens around you … you only have control over your response to those circumstances. You gotta believe in yourself.

Sales slumps are going to happen. You must shorten their duration and work you way out of the slump. If you follow the above methods, you’ll improve your sales effectiveness and consistency.

Moving Forward,

Jeff Roach

Should a Trucker Be a Freight Broker?

by Jeff Roach

Microsoft bundles products that complement each other. Similarly, a trucking company and a brokerage are complementary products easily bundled.  But the timing must be right.

Only when a trucking company has more freight than capacity should they open a brokerage. If a trucking company wants loads for their trucks they could simply use the Gold Book of brokers to get loads or go find some shippers.

The brokerage has to be set up as a separate business all together with a broker MC number. (at the top of the auth it will have MC-B to indicate you’re a broker not a carrier). You will have economies of scale, however, brokers and carriers have completely different regulations and laws and liabilities

Go to the FMCSA web site and do everything on your own. Look up “property broker”.  The fee for the broker authority is around $300.00 as long as you can get a 10k bond and process agents (PA $40 or 50 dollars.)

When you’re ready to either open a brokerage or be an agent for a broker you should get training.  Subscribe to C.Depot or a similar website to learn cost per mile spread.

Tell your shippers that you also have a brokerage.  Explain that you have an asset based transportation company and a non-asset based company to better serve them. In the old days a broker was a dirty word for carriers to the shippers, now, it is no big deal. All the big trucking companies have brokerages - they call them 3pl’s.

I have been fortunate to meet drivers who attend my career school for freight brokers and agents.  I can honestly say the driver does all the work and gets the least amount of respect. I want every carrier out there considering this business to know the truth.

This is a service business where you put the carriers' and shippers' needs together.  Plan on working hard every day all day for  3-6 months before you start making real money.  It is not magic.  It is a strategic business. The Freight broker business is not a get rich quick deal. It requires you to continue to prospect for both shippers and carriers and requires a great attitude.

Realize you will have your ups and downs. Focus on progress not perfection. Keep your cost as low as possible and serve your shipper and carrier as an extension of their office. Keep doing that and you can build a real career that you can work anywhere you have Internet.

If your cash flow is not working with your trucking company then do not open a freight brokerage because it requires major cash flow. You have to pay the carrier first and on time and then bill the shipper. Turn around time on your money is at least 45-50 days.

You should never use a factor if you’re going to open a brokerage. If you have to do that, then it makes more sense to be an agent for an established broker.

Being a Freight Broker or Freight Broker agent is a great career. Our economy and the role of the broker are evolving as we move into the information age. It is important to stay ahead of the curve. In this industry time is money. Do everything with a sense of urgency.  Have a plan. That is where the training comes in.

“The only thing worse than training your employees and they leave is not training them and they stay” ….Zig Ziglar.

My two cents,
Jeff Roach
President
Brooke Transportation Training Solutions, LLC

Get the Training That You Need to Work from Home

 

Do you need to work from home? If you are unable to afford transportation to or from work, if you are unable to afford the cost of childcare, or if you are disabled, you may need to work from home. However, with a recent increase in popularity, finding a legitimate work at home job or business opportunity can seem like a long and complicated task. If you would like to increase your chances of successfully working from home, you are urged to seek additional training. In the end, this training may set you apart from other candidates or business owners.

When it comes to furthering education, there are many individuals who automatically assume that they need to return to college and get a degree. This, simply, is not true. There are a large number of courses that you can take, locally and online, that are not considered college courses. Despite being unable to earn credits towards a degree, there are a number of different reasons why you should consider furthering your education. These reasons and their benefits are outlined below.

One of the many reasons why you should think about seeking additional training is because it is easy to do. As it was mentioned above, many training courses are offered locally and online. For instance, if you are interested in taking a training course that will help you learn how to work at home as a freight broker, but that class is only available in the Dallas area, you can still take the course. Instead of taking it locally, in a classroom setting, you will just need to take it online. This type of course is often referred to as an eCourse.

Another one of the many reasons why you should think about furthering your education, or at least your training, is because there are literally an unlimited number of fields for you to choose from. Above, freight brokering was used as an example. Freight brokers are individuals who pair truck drivers with product manufacturers; manufacturers who need their products moved from one location to another. Although you may make a substantial profit working from home as a freight broker, it is not your only option. In fact, it is possible to find thousands of different training courses, which specialize in a wide variety of different work from home opportunities, in your local community or online. Essentially, all you really need to decide is decide what direction you would like your career to head in and choose a training course from there.

It is also important to note that many work at home training courses are affordable. When you think of all of the information that you will walk away with, they are actually reasonably price. In fact, the amount of education you receive in one training course is often compared to a four year degree at an accredited college or university; the only difference is the cost. Despite being reasonably price, you may be able to seek financial assistance. A large number of training course companies offering financing to qualifying students. Should you successfully complete the training course in question and start working, whether you start your own company or work for an existing one, you may be able to pay for your training in no time at all.

Since a large number of individuals and companies offer careering training courses, both locally and online, you will want to carefully choose your training course. It may be a good idea to use the internet to research similar training courses, to find the one that best fit your needs. If you are in need of financing, it is important that you search for courses that offer financial assistance, which is often in the form of a loan. It is also important that you take a training course where you will receive a certificate of completion at the end. This certificate of completion will be important, particularly when it comes to starting your own business. It may help increase your chances of obtaining new clients.

The above mentioned reasons are just a few of the many reasons why you should at least look into furthering your education, whether it is with a degree or a career training course. To get you started in your search, you may want to examine the career training courses currently offered at Brooketraining.com.

Price Trends: Pricing Across the Transportation Modes

By Elizabeth Baatz, Thinking Cap Solutions

TRUCK
The U.S. trucking industry pushed through an average 0.7% price hike from March to April. That increase was possible thanks in large part to a 2.2% jump in prices charged by LTL general freight carriers. Truckload operators, in contrast, managed to push up prices just 0.6% over the same one-month period. Looking at tags in April 2006 compared to the same month a year earlier, prices are up 8% and 2.9% for LTL and TL, respectively. After 15 consecutive quarters of price hikes, the trucking industry cut tags by 0.4% in the first quarter of 2006. That's likely a minor and temporary step back. The forecast now calls for average industry prices to grow 4.4% in 2006 followed by a 3% gain in 2007. Higher interest rates ahead should forestall more inflation surges.


From Trucking to Freight Brokering

 

by Aileen Cho
Monster Contributing Writer

Trucking can be a rewarding career, but it may not be right for every life situation. If you're a trucker who wants to stay in the industry but not drive, freight brokering might be the answer.

click here to read entire story


New Services

 

Recently added: Brooke Financial Services and Brooke Consulting Services, considered already as one of the top consulting companies for both shippers and carriers.

Jeff can be reached by email jroach@transportationtraining.com
Visit his web sites www.brooketraining.com and www.justintimefreight.com

His office number is (214) 206-1169.

Brooke Training books Zig Ziglar's keynote speakers.
Call for more information.


Bryan Flanagan Teaches for BTTS

 

The evolution of the sales profession has caused great changes in the world of selling. The focus, strategy, and in some cases techniques, have changed to reflect the varying demands of our prospects and customers.

Our customers, economy, and responsibilities are changing. How are we responding to these changes? Are we going to arrive in the future before our customers do?

Bryan Flanagan believes in the sales profession and he respects salespeople. However, he also understands that selling is a challenge. Just think about it: if selling were easy, sales managers would still be doing it!

Check out Bryan's seminar, CD set and book.


Ask the Expert: What Do You Think about the Petition by OOIDA to Raise the Broker Bond?

 

I support the proposal to raise the broker bond from $10,000, in order to ensure the financial integrity of freight brokers. The current bond level of $10,000 is not high enough to cover losses incurred in the event a broker is not fiscally responsible. Owner operators need a way to know that they are doing business with reputable brokers, especially since they are the ones assuming the insurance cost and taking on the liability for the shipments.

In our freight broker training school at Brooke Training, many of the students who currently go through the course are former owner operators who desire to get off the road, or carriers who want to open up a brokerage division. The students from these backgrounds understand the owner operator, and communicate their plight to the class daily. This can mean the difference of survival for them, and the owner operator cannot afford to absorb the costs of a broker who does not pay. One of the primary things that we teach prospective brokers in the class is that respect for the driver should be of utmost importance – to treat the driver as they desire to be treated.

One of our goals is to raise the standard of the freight brokerage industry, and this bond petition is a step in that direction. We teach prospective brokers who do not have sufficient funds to pay on a timely basis that they should become an agent for a company rather than setting up their own brokerage. A broker needs to pay fair and in a timely manner - let’s keep the trucks and cash flow rolling as quickly as we can.

There are also other steps that the owner operator should take to protect himself. He should ask for references from the broker (from carriers, owner operators and shippers). He can also run a credit report on the brokerage to determine their level of responsibility.

It’s also a good idea for the carrier to start out with a set credit limit for the brokerage.

I agree with Jim Johnston, President of OOIDA, who states that “Obviously, when brokers run up debts of $100,000 or more with truckers, the $10,000 bond does not come close to providing the type of protection intended by Congress.” There are a lot of variable that determine what the magic number should be for the bond, but $10,000 isn’t enough. I believe that by requiring a substantially larger bond for freight brokers, this will help raise the bar for the industry and help further control unnecessary losses for both the carrier and owner operator. It will also give an advantage to the brokers who pay their carriers and reduce fraud.

(BIO: Jeff Roach is president of Brooke Transportation Services, Inc. Roach, a 17-year veteran of the transportation industry, started Brooke Group a decade ago, and it has built up into one of the leading U.S. transportation firms.

Recent expansions include Brooke Transportation Training Solutions, a freight broker training school, and Ashely Transportation. Find out more about Brooke at www.justintimefreight.com and www.brooketraining.com. Email Jeff at jroach@transportationtraining.com or call (214) 206-1169.