Freigth Bible

2016
Motor Carriers
Contents © Copyright 2002 - 2016

Transportation Training Group - Scott Woods
http://www.freightbrokertraining.com
Motor Carriers
Selection of Motor Carriers
Freight Brokers are required to use motor carriers who meet the minimum safety and insurance
requirements as prescribed by the FMCSA. Many freight brokers will place requirements on the motor
carrier that are more stringent than the governing agency. I will explain the vetting process used by
freight brokers ahead.
Motor Carrier Safety Ratings
The motor carrier safety rating is an evaluation given to an interstate commercial motor carrier (a
company which employs truck or bus drivers) by the Federal Motor Carrier Safety Administration
(FMCSA).
A safety rating is determined by a compliance review, an on-site examination of motor carrier

operations, such as drivers' hours of service, maintenance and inspection, driver qualification,
commercial drivers' license requirements, financial responsibility, accidents, hazardous materials, and
other safety and transportation records to determine whether a motor carrier meets the safety fitness
standard. A compliance review may be conducted in response to a request to change a safety rating, to
investigate potential violations of safety regulations by motor carriers, or to investigate complaints, or
other evidence of safety violations. The compliance review may result in the initiation of an
enforcement action.
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Copyright © 2002-2016 Scott Woods – Transportation Training Group. All Rights Reserved
Motor Carriers
One of Three Safety Ratings Will Be Issued Following a Compliance Review
Satisfactory - A Satisfactory rating means that a motor carrier has in place and functioning adequate
safety management controls to meet the safety fitness standard prescribed in §385.5 of the Federal
Motor Carrier Safety Regulations (FMCSR). Safety management controls are adequate if they are
appropriate for the size and type of operation of the particular motor carrier.
Conditional - This rating means a motor carrier does not have adequate safety management controls in
place to ensure compliance with the safety fitness standard found in §385.5 of the FMCSR.
Unsatisfactory - An Unsatisfactory rating means a motor carrier does not have adequate safety
management controls in place to ensure compliance with the safety fitness standard which has resulted
in occurrences listed in §385.5 (a) through (k)of the FMCSR.
Generally, a motor carrier rated unsatisfactory is prohibited from operating a CMV. If a proposed
unsatisfactory safety rating becomes final, the FMCSA will issue an order placing its interstate
operations out of service. Any motor carrier that operates CMVs in violation of this section will be
subject to the penalty provisions listed in 49 U.S.C. 521(b).
Motor Carrier Insurance Requirements
The FMCSA only requires $750,000 primary liability coverage, but most shippers/brokers require
$1,000,000 to load you. The most common request for cargo is $100,000, but this would depend on
what you are hauling and whom you are hauling for;
 Bodily Injury & Public Damage - $750,000 - $5,000,000, depending on commodities

transported; $300,000 for non-hazardous freight moved only in vehicles weighing under
10,001 lbs.
Freight Broker Insurance Requirements
The FMCSA lifted cargo insurance requirements in 2011 for motor carriers. Freight brokers however
have kept them in place for the protection of their company and customer too.
Minimum Carrier Requirements
 Bodily Injury & Public Damage Insurance Coverage of $1,000,000

 General Liability Insurance Coverage of $1,000,000
 Cargo Insurance – $100,000
 Workman’s Compensation “Where Required“
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Motor Carriers
CSA (Compliance, Safety, Accountability)
Each month, the SMS pulls a monthly data snapshot from the FMCSA’s national database. That
information includes roadside inspections, safety violations, crashes reported by State law
enforcement, motor carrier registration and census data, and investigations conducted by State and
Federal authorities.
That data is then used to compare carriers of similar size across several Behavior Analysis and Safety
Improvement Categories, or BASICs:
 Unsafe driving
 Fatigued driving, or Hours of Service
 Driver fitness
 Controlled substances/alcohol
 Vehicle maintenance
 Cargo-related
 Crash indicator
The higher the score, the poorer the carrier’s performance—and the more likely they’re to be involved
in a crash, according to the FMCSA.
And it’s this data that the FMCSA uses to determine carriers in need of intervention, insurance
companies review in their underwriting process, and shippers check when hiring safe, reputable
carriers, thereby reducing their own liability in the event of a crash. (It’s important to note that cargo-
related and crash indicator BASICs data are not available to the public.)
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Motor Carriers
CSA Key Features
Shippers and Freight Brokers should be positioned and prepared for these changes. They must
investigate the Federal Motor Carrier Safety Administration’s safety measurement on all carriers and
implement service contracts with proper indemnification and insurance coverage requirements
relieving you of the concern as to whether or not the carrier is “Safe” to use.
CSA Scores
The higher the scores in any given BASIC or overall score, the inference is that the worse the carrier’s
safety is. For example, a score of 95 means that 94% of peer carriers have a better safety record
SMS and BASICS
 Unsafe Driving - Operation of

commercial motor vehicles (CMVs) in a
dangerous or careless manner.
 Fatigued Driving (Hours-of-Service) -
Operation of CMVs by drivers who are
ill, fatigued, or in non-compliance with
the Hours-of-Service (HOS) regulations.
 Driver Fitness - Operation of CMVs by
drivers who are unfit to operate a CMV
due to lack of training, experience, or
medical qualifications.
 Controlled Substances and Alcohol - Operation of CMVs by drivers who are impaired due to
alcohol, illegal drugs, and misuse of prescription or over-the-counter medications.
 Vehicle Maintenance - Failure to properly maintain a CMV.
 Cargo-Related - Failure to properly prevent shifting loads, spilled or dropped cargo and unsafe
handling of hazardous materials on a CMV.
 Crash Indicator - SMS evaluates a motor carrier’s crash history. Crash history is not specifically
a behavior. Rather, it is a consequence of a behavior and may indicate a problem with the carrier
that warrants intervention. It is based on information from State-reported crash reports and
identifies histories or patterns of high crash involvement, including frequency and severity.
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Motor Carriers
What Are Shipper And Freight Broker Responsibilities?
The Federal Motor Carrier Safety Administration (FMCSA) has clearly stated that the shipping public
(shippers and brokers) do not have the responsibility to interpret the CSA scores and make the
determination as to whether or not a carrier is “Safe To Use”. However, the courts may interpret who
holds those responsibilities differently.
Plaintiffs Are Suing Shippers and Brokers - One Or More Of These (3) Theories:
 Vicarious Liability - The shipper or broker has some liability if they utilized a carrier who they
had some kind of relationship with.
 Negligent Hiring - The shipper or broker should have known what type of safety profile the
carrier had and if they did not, they were negligent in an area that they were responsible for.
 Negligent Retention - If you broker a load and know that the carrier potentially poses a danger,
you bear some level of responsibility.
Freight Broker Negligence
The Schramm v. Foster decision clearly stated that the broker has a
degree of responsibility and that the driver is an Agent for the
Shipper/Broker. A number of things have been pointed out from this
case law and other cases with regard to what is expected to the
broker:
In Schramm v. Foster, a Maryland court found that C.H. Robinson

Worldwide negligent for hiring a trucking company that caused an
accident, Groff Brothers Trucking. The result was a $25,000,000
judgment against the broker and the shipper. Freight brokers and shippers must do more than due
diligence when hiring carriers, carefully evaluating trucking company safety records
Because of the Schramm case involving C.H. Robinson, brokers may be held liable for catastrophic
personal injuries based on "Negligent Hiring" of carriers. A federal district court in Maryland ruled that
brokers must exercise reasonable care (due diligence) when qualifying and hiring motor carriers.
Even the bare minimum of obtaining a copy of a carrier's operating authority, verifying insurance
coverage for personal injury, property damage and cargo insurance, obtaining an insurance certificate
and verifying the carrier does not have an "unsatisfactory" safety rating may not be enough to satisfy
new requirements.
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Motor Carriers
Protection Measures
Here are some measures that may be taken to curtail risk factors for your freight brokerage.
Guidelines
 Freight Brokers should never be designated as an "Agent" of the carrier. A freight broker is an
independent contractor and cannot represent either party.
 Carriers are independent contractors of the freight broker and not sub-contractors. This will
alleviate potential workman’s compensation issues.
 Freight Brokers should ensure their marketing materials represent the broker status of the
operation and not of a carrier.
Due Diligence and Carrier Safety Data
Monitor the carrier's safety rating through the SafeStat Website.
 Do Not Use - If the carrier has an "Unsatisfactory" safety rating,

 Optional - Carriers with "Conditional" safety ratings should be investigated further.
 Good To Go - Carriers with "Satisfactory" safety ratings are generally good to go but should be
monitored for any changes in their rating. A decision to use a carrier should not be based solely
on a satisfactory safety rating.
The General Guidelines
 Create a file on every trucking company to be used in the firm's "Stable" of carriers, and insist
that it be checked prior to loading them the first time. (Review Regularly)
 Include a copy of the carrier's operating authorities and insurance filings with the FMCSA.
 Include the carrier's safety rating with the FMCSA. Don't use a carrier if it has an
"Unsatisfactory" rating.
 Brokers and 3PLs should not knowingly permit their name to be shown on the Bill Of Lading as
the carrier. If a shipper is following that practice, request they discontinue doing so
immediately.
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Motor Carriers
Due Diligence (Motor Carrier Has No Safety Rating)
 Ask the carrier how or what it does to comply with federal safety regulations? Specifically ask about
loading and unloading, hours of service, controlled substance testing and use, driver training and
compliance with equipment and maintenance regulations. Document the responses and keep them
in your carrier file.
 Determine whether the carrier performs its own maintenance or if it's subcontracted to another
organization? If it is subcontracted, verify that the maintenance is in fact performed by that
organization.
 Review your rate confirmation sheet. Insert a clause that states "delivery and pick-up dates and
hours will not require the driver to violate hours of service regulations". Insert a statement that says
"routing instructions are for informational purposes only".
 Obtain a copy of the carrier's operating authority and check with the FMCSA to ensure their
authority is not inactive or pending revocation for any reason.
 Obtain an insurance certificate from the carrier's insurance agent. If the carrier provides you with a
copy, verify the policy information with their insurance agent. Make sure it covers cargo, public and
auto liability - including non-owned, hired autos and property damage.
 The name of the insurance company listed with the FMCSA should be the same as what is on the
insurance certificate. Should the names differ, do not load the carrier until you learn why.
 The motor carrier name on the insurance certificate should match exactly with the name on the
FMCSA operating authority certificate. You can also verify the motor carrier name using the
FMCSA website. If the names do not exactly match, you should not load the truck. (d) Verify the
insurance effective dates and monetary limits with the insurance agent.
 Ask the insurance agent if there is any action pending or threatened for suspension, termination or
revocation of the policy for any reason. If the answer is "yes", you should not to load the truck
pending further investigation.
 Ask the insurance agent whether there are any exclusions in the insurance policy that would
preclude coverage for the freight being tendered. For example, rust and corrosion are common
exclusions for carriers hauling steel.
 Every carrier you use must sign and return your broker/carrier contract before tendering freight.
Make sure someone authorized to sign it on behalf of the carrier signs on the contract, including
their job title. If the signature shows someone's title as "dispatcher", it would be wise to check and
make sure that person has signing authority.
 Your freight broker agents should only be authorized and instructed to use pre-qualified carriers.
Any violation of this corporate policy could subject them to immediate disciplinary action, which may
include termination of employment.
 Apply your carrier qualification process consistently. Also be sure to keep records for carriers that
are rejected, along with reasons why, to support the consistent application of your due diligence
efforts.
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Motor Carriers
Evaluate Carrier Safety and Other Documents:
Monitor the carrier's safety rating and SafeStat SEA values using the SafeStat website. If the carrier has
an "Unsatisfactory" safety rating, do not use the carrier. Carriers with "Conditional" safety ratings
should be investigated further. Carriers with "Satisfactory" safety ratings should be monitored for any
changes in their rating. A decision to use a carrier should not be based solely on a "satisfactory" safety
rating. Safety evaluation area (SEA) scores should be checked but are known to be unreliable. The SEA
scores, if used at all, should be only one of many considerations made in carrier selection.
The toughest case to investigate is when a carrier has no carrier safety rating and no SafeStat scores.
New carriers may not get rated for a considerable amount of time. If there is no safety information, ask
the carrier to provide references and check them. Regardless, this is a good practice to follow in any
situation.
If There Is No Carrier Safety Rating:
a) Ask the carrier how or what it does to comply with federal safety regulations? Specifically ask
about loading and unloading, hours of service, controlled substance testing and use, driver
training and compliance with equipment and maintenance regulations. Document the
responses and keep them in your carrier file.
b) Determine whether the carrier performs its own maintenance or if it's subcontracted to
another organization? If it is subcontracted, verify that the maintenance is in fact performed by
that organization.
c) Review your rate confirmation sheet. Insert a clause that states "Delivery and Pick-Up Dates
and Hours Will Not Require the Driver to Violate Hours of Service Regulations". Insert a
statement that says "Routing Instructions are for Informational Purposes Only".
d) Have a transportation attorney review your broker/carrier contract. Ensure it contains all the
necessary representations to protect your company as much as possible in the wake of the
Schramm case.
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Motor Carriers
Things to Avoid in Your Promotional Materials:
Brokers should never be designated as an "Agent" of the carrier or shipper for any reason. If the broker
is truly an independent contractor, then the broker is not an agent of carriers or shippers.
Carriers should never be a "Subcontractor" of the broker. It raises workers compensation and other
potential liability issues. Claims have been made against brokers based on the analogy to the
construction industry where contractors are sometimes liable for the actions of their subcontractors.
Brokers should not be a "Partner" with carriers. Representations should not be made to the public that
state if the carrier's insurance limits are insufficient that the broker's insurance will cover the loss. That
could be construed to mean the broker is assuming the carrier's liability. This representation was
present in the Schramm case. This is different than telling a shipper that the broker has contingent
cargo insurance to cover cargo loss and damage if for some reason the carrier's policy does not cover a
cargo loss.
Brokers should check their website, along with other marketing and advertising materials, to ensure
they represent themselves only as a broker and not a carrier. Courts look at all circumstances of the
case, including how the broker "Holds Itself out to the Public" and how it was acting in order to
determine whether it will be treated as a broker or carrier for liability purposes. Courts will follow the
"Duck Theory". If you look like a duck and act like a duck, the court will rule that you are a duck,
regardless of what your contracts say.
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Motor Carriers
Carb Compliance Rules
California Reefer Regulations
Freight Brokers and other Freight Forwarders are required

to verify that refrigerated trucks hauling for them in
California have CARB-compliant Transport Refrigeration
Units (TRU.) That means that if you are hiring, or contracting
with, a carrier to transport perishable goods through
California, you must:
Only CARB-compliant TRUs may be contracted for transporting freight on California Highways.
Provide your contact information to the carrier so that drivers can present it to enforcement personnel
upon request.
These requirements apply to every Freight Broker or Freight Forwarder that hires a carrier to
transport reefer freight within the State of California.
Compliance Tips
Ask carriers to provide proof of compliance, such as the California’s Air Resources Board Equipment
Registration (ARBER) certification page. Check CARB’s public databases to verify a carrier’s
compliance. There are two lists:
 Carriers That Are 100% Compliant: Website

 Compliance Status For The TRU Itself: Website
When drafting the contract for a load that will go through California, include language that requires the
carrier to use CARB-compliant equipment. Have the carrier initial or sign that statement. Document
the steps you took to verify that the carrier was required and confirmed to use a CARB-compliant TRU.
California-based Freight Brokers and Freight Forwarders have additional obligations under CARB. If
you maintain an office or other facility in California, you must also require that the carrier you hire has
reported to CARB, or complies with the Tractor-Trailer Greenhouse Gas (GHG) Regulation. The GHG
rules apply to all power units, not just reefer trailers.
In addition to verifying TRU compliance for reefers, in-state brokers must verify GHG compliance for all
trucks domiciled in California. This is a two-step process:
 Check CARB’s Public Database - Website
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Motor Carriers
Carb Compliance Letter
When you are transporting refrigerated freight “In or Out” of California you can also request your
motor carrier send you a copy of his “Certification Letter” to include in his motor carrier package.
Sample
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Motor Carriers
Starting To Do Business
When you first start to do business with a new carrier you will need to get them “Set Up” in your carrier
database, you will need to verify Motor Carrier Authority, Safety Rating and proper Insurance.
Freight Broker - Motor Carrier Paperwork
The Freight Broker will have a “Carrier Set Up Package” which
will contain the following documents for the carrier to complete
and return. The carrier will also attach copies of their
paperwork including a copy of Authority, Certificate of
Insurance and IRS W9.
FMCSA Contract Authority
The “Authority” or “MC” number of the motor carrier is
required on file for your protection. You can check the accuracy
of information provided by the motor carrier here. I suggest you
print a copy of the FMCSA record and include in the carrier file.
 FMCSA Company Snapshot - Website
Insurance
You will also need to have your freight brokerage listed as a “Certificate Holder” on the motor carriers
“Liability & Cargo” insurance. You do this by having the carrier complete an insurance request form or
simply contacting the motor carrier insurance agent. You verify the accuracy and “Minimum Insurance
Requirements” here:
 Automobile Liability Insurance - $750,000 - $5,000,000, depending on commodity.
 Bodily Injury & Public Damage Insurance - $1,000,000.00
 General Liability Insurance - $1,000,000.00
 Cargo Insurance - $100,000.00 ( Reefer - $250,000.00 )
 Workman’s Compensation - “Where Required or Certificate Of Election”
 FMCSA Carrier Insurance - Website
IRS W-9 Form
You will also need a copy of the carriers IRS W-9 Form. You can download a blank one here.
 Download Link
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Motor Carriers
What You Should Include In Your Motor Carrier Set Up Package
What Should Be Included

The Freight Broker’s “Set Up” package consists of the documents that
are required to be completed by the carrier prior to receiving a
tendered load. I will list below the paperwork that should be included
in your “Set Up” package to motor carriers.
Contents
 Carrier Welcome Letter - This will outline a general welcome
message to the carrier for initially transacting business with
your freight brokerage and also any required instructions.
 Company Profile - This will give general information about
your Freight Brokerage such as Dispatch Contacts, Banking
Contacts, Bond Company and Factoring Company.
 Broker Carrier Agreement - This agreement will govern the services provided by the carrier for
your freight brokerage. It will also list the exclusionary rules of how the carrier should operate
and help prevent back solicitation of your customers.
 Operating Authority & Surety Bond - You should always include a copy of these documents.
 Insurance Request - The carrier will send this to his insurance agent to have you listed as a
“Certificate Holder”.
 CARB Compliancy Statement - Required if you’re going to transport Refrigerated Freight “In
or Out” of California.
 Workmen’s Compensation Certificate Of Election - This is a disclaimer and release of liability
stating the motor carrier is responsible to maintain his own Workmen’s Compensation
Insurance and he is also an Independent Contractor.
 Payment Terms - You will include this form for carriers to review for the different types of
payment options you have available such as Thirty (Net 30) Days or Quick Pay Options. This
will also detail what you will require for final settlements such as BOL, Weight Tickets, Lumper
Receipts or other documents.
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Motor Carriers
Marketing Freight To Carriers
The business of being a Freight Broker is to have access to a broad and diverse carrier base to transport
your shipments. We find our carriers through a variety of different methods. This will involve a number
of different marketing resources to be successful.
Internet Load Boards
Load Boards are a necessary resource for Freight Brokers.

They serve as a matchmaker for Freight and Carriers.
Freight Brokers subscribe to these services to “Post
Freight” and to “Search Carriers”. There are many different
load boards available, although only a few of them have the
carrier capacity that should warrant a subscription.
Most Popular
 DAT Transcore 360 - DAT is one of the premier

load bards on the internet. They have terminals in almost every truckstop where drivers can
view available freight. DAT also has a multitude of tools available which will help you with rate
structure and negotiations. This is a must have! - Website
 Internet Truckstop - This is the original load board for Freight Brokers and Motor Carriers. It
still has the largest selection of carriers available. - Website
This Race Is On!
When you are presented with the opportunity to transport a load for a shipper, you must act quickly as
he might be working with other trucking companies or freight brokerages. The quicker you get back to
him with a rate from an actual motor carrier to transport the load the better the chance you have of
obtaining the load from him.
I would suggest you provide your shipper with an actual carrier that it is available for the load. Shippers
want concrete solutions. Many freight brokers have ruined opportunities with potential shippers by
providing a freight rate to them without a firm carrier in place to transport the freight. Do not take risk
a new customer by “Crying Wolf”.
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Motor Carriers
Marketing Opportunities To Your Carrier Database
A successful freight broker will use a variety of methods for marketing freight to his carrier database.
He will work smarter and not harder. Some of these methods will include:
 Email Distribution List - You will market your available loads to the freight dispatchers through
phone and emails. I keep my carrier email list handy to cover my loads quickly when a carrier
cannot be found.
 Texting - I would suggest you maintain a database of mobile phone numbers for freight
dispatchers and owner operators. Everybody has a smart phone nowadays. You are simply
missing out on potential opportunities if you do not do this.
 Private Load Boards - In addition to utilizing the regular load boards for marketing freight you
might want your own. Once you have built up a carrier following you can have a load board
added to your website.
Marketing Resources & Tools

I have listed a variety of resources, tools and tutorials below to which
you can increase your chances of moving more freight.
Opt - In Email Providers (Permission Based)
 Constant Contact - http://www.constantcontact.com
 Mail Chimp - http://www.mailchimp.com
 A Weber - http://www.aweber.com
 Get Response - http://www.getresponse.com
Email Tutorials
 Microsoft Outlook Tutorials - Click Here
 Create A Distribution List In Microsoft Outlook - Click Here
Group Texting Tools
 EZ Texting - https://www.eztexting.com
Smart Phone Applications
 Group Me - This is an excellent application for mass texting and bulk emailing to your
customers or carriers. https://www.groupme.com
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Motor Carriers
Freight Rates
Establishing a freight rate can be very difficult
for a freight broker at times. This will involve a
lot of “Trial and Error”. There are no guides or
software that can give you an exact rate unless
you are booking your loads with a contract
carrier who is providing cartage rates according
to freight tariffs issued by their company.
When you are given the opportunity to work a
load for possible transport from a shipper, you
must first start negotiating the rate with the
carrier. A lot of freight brokers will “Burn Bridges” with a potential customer by providing a freight rate
that will not move their loads. You should always provide your shipper with a “Solution” not a freight
rate. You will get more freight by having reliable carriers available to transport the freight, than by
merely throwing out random rates.
Resources & Tools
These a few resources which can provide you with general rates for equipment types and availability
through America. These are not meant to be “Exact” rates. These are only market indicators on what
you might have to pay a carrier or the availability of carriers in an area.
 DAT Trendlines - Website
 DAT Rate View - Website
Freight Rates Are Determined By The Following:
 Diesel Prices - Gas prices fluctuate all over the country. This always plays a role in the rate.
 Broker Credit Rating - The quicker you pay or the longer your brokerage is in business will get
you a lower rate.
 Equipment Availability - If there is a market shortage for the equipment you require, the rates
will rise. The law of the earth is “Supply and Demand”.
 Freight Availability - If there is a ton of freight available and the carrier has multiple choices for
loads the freight rates “Rise”. A carrier is concerned about where his load is delivering and the
possibility of a good reload being available in the area. If your freight is going to a “Slower” are in
the country the rate will be higher.
 Seasonal Changes - No matter what type of freight that you are transporting freight rates
fluctuate during peak periods of the year.
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Motor Carriers
Negotiating Rates With The Carrier
It is important to develop a
relationship with your carrier base.
Once you have accomplished this, you
will have a better understanding to
which carriers will move your loads for
the rates you want. When moving a
load, a carrier looks at the lane in
which the load is traveling.
For instance if you have a load going

from California to Wisconsin and you
carrier is from Illinois, the carrier is
more likely to give you a better rate to
move the load because it is traveling in the general direction of his yard.
Having a relationship with your carriers also benefits you in other ways by creating a separate income
stream for your brokerage. If you know where your carriers are located and loads become available
from other brokers, you can enter into a co-broker agreement with them and simply dispatch the
carrier to the load. If you have the trucks the freight will find you, it is extremely important to have a
firm hold on where your favorite carriers equipment is located at all times.
Core Carriers
When selecting motor carriers to transport your freight you want to attempt to establish a “Core”
group of motor carriers that provide you with quality and reliable service. You will want to market your
load offerings to these motor carriers regularly. Once the relationship is established with the carriers,
you can generally expect to receive better freight rates from them due to the number of loads that they
transport for you.
Freight brokers and agents who maintain good communication with their core carrier base will stay on
top of the freight lanes in which they focus their time. They also foster a relationship where they can
assist you in “Hard to Move” loads when needed.
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Motor Carriers
Dedicated Freight Lanes
This refers to a company pulling freight for

one specific shipper week after week, with
same pick up and drop off points. The goal
of every freight broker and trucking
company is to obtain freight moving in
dedicated lanes. This will provide
consistent revenue from the shipper. Once
the carrier has been established for the
freight lane, it will only require minimal
involvement from the freight broker.
When a freight broker starts negotiating

freight rates with carriers for this type of
movement, he will typically study a given
freight lane for the motor carriers servicing the lanes in question. It is crucial that you locate a carrier
who has consistent availability of trucks within the freight lane. Freight in dedicated lanes is typically
available for “Bid” on a “Bi-Annual or Annual” basis. In order for you to have “Carrier Capacity” in the
marketplace to service the lane you will need reliable carriers.
How Freight Brokers Determine Freight Rates
 Due Diligence - The freight broker will consult multiple carriers and obtain their rates for the
given freight lane. He will then counter offer negotiated rates to the carrier allowing himself to
make money on the freight.
 Median Rates - Once the freight broker has received or negotiated freight rates with his carrier
list, he will then combine all the rates together. He will divide combine all of the freight rates and
then divide the number of carriers who bid on the lane into the sum of the combined rate. This
will be the median freight rate. This is the rate you can get your freight transported for in most
cases.
 Freight Quote - The freight broker will then add his profit into the median rate and submit his
freight quote to the shipper. I would suggest you also include a small percentage into the freight
quote to allow for “Service Failures” from carriers and also “Fuel Surcharges”. This way if you
have to increase the freight rate to obtain carriers you are covered.
 Multiple Carriers - I would also recommend you obtain “Multiple Carriers” to service the lane.
You do not want to put all of your eggs in one basket. If a selected carrier has a service failure
and is unable to load your freight, you need have a “Backup Plan”.
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Motor Carriers
Market Rates (Spot Bids)
Hypothetical Scenario
A shipper has a load of produce leaving Salinas,

CA in June, the load has (4) pickups and (1)
delivery in Jessup, MD. The shipper is offering
you a rate that is marginal to get the load moved
and you are getting no action from carriers for
interest in the load.
Let us say your shipper is offering you a rate on this load of $7000.00. This is an unrealistic rate during this
time of year. Typically, the carrier commands a rate of $3.00 per mile due to the amount of pickups and
deliveries, and the fact it is an East Coast run.
Pricing Indicators
 The (#) of Pickups - This load is obviously a “Mixer”. This is a load that has several different
commodities. This will require pickups from different locations. This means that loading will require
a lot of time. Time is money. Drivers do not like to accept load like this because of all the headaches
involved.
 Supply & Demand - This is the busiest time of year in this area. Carrier Capacity will be low and
“Load Volume” will be high. In order to get a carrier to transport this load he will be wanting a very
good rate as he has lots of choices.
 Drop Off Location - This load is going to Jessup, MD a terminal produce market on the East Coast.
The backhauls for the carrier will be few and far between. This means he will get a cheap rate loading
out.
The Load Negotiation
Salinas, CA - Jessup, MD is 2870 Practical Miles. If you do your math you will find that the carrier is going to
want around ($8500.00) to transport the freight. You will need to negotiate the price lower to the carrier to
be able to make a decent profit (10%) on the load. The carrier will always start with a higher rate but will
generally lower it with negotiation. In this case I would want to get his rate down to around ($7400.00) or
around $2.60 per mile. I would offer him a “Flat Rate” on the load.
Once I have negotiated the rate with carrier and he has lowered his rate, I will then approach the shipper
with my rate of ($8500.00). Now, I am actually going in higher with the freight rate to the shipper as I know
he is going to give me a counter offer. I am willing to take around ($8100.00) for the transport of the freight.
When you are negotiating it is nothing more than “Liars Poker”. You can always come down on the freight
rate to the shipper, you can however not raise it once it has been given unless load details change.
19
Motor Carriers
Fuel Surcharges
Do They Go To The Carrier? (Yes & No)
Freight Brokers will generally give the carrier an “All in Rate” to avoid paying fuels surcharges. This
means the fuels surcharge is already included as part of the rate. However occasionally a freight broker
will negotiate “Contract Rates” and they will include a FSC (Fuel Surcharge) as part of the negotiated
rate.
Hidden Profit
A FSC (Fuel Surcharge) is a great way to make additional profits for your brokerage. When a shipper is
providing you with a freight rate for the line haul, occasionally they will include a fuel surcharge in
addition to the base rate. If the base rate is a
decent rate for the haul,
I usually just pocket the fuel surcharge on the

load. It is a great way to increase the gross
profit. I have found that most major companies
will include a fuel surcharge, the smaller
companies however will not. Nearly every
dispatcher will ask you if there is a fuel
surcharge on the load. I will most generally
give them a flat rate, depending on how hard
the load is to cover in a specific lane.
An additional charge imposed by motor

carriers due to the increasing price for diesel.
The charge is a percent added to each load
based upon the U.S. National Average Diesel
Fuel Index published weekly by the U.S.
Department of Energy. Fuel Surcharges will fluctuate accordingly as diesel prices raise or lower.
Links
DOE Energy Information - Website
This is the website where the Department of Energy publishes weekly diesel prices across the country.
Shippers will use this data on basing the rate of the fuel surcharge.
20
2016
Freight & Equipment Types

General Freight
General freight transport does not require the use of specialized equipment. The trucks used can
handle a wide variety of commodities. Freight is generally palletized, and generally carried in a box,
container or van trailer.
TL - Truck Load
Truckload shipping is the movement of large amounts of cargo, generally the amount necessary to fill an
entire semi-trailer or intermodal container. A truckload carrier is a trucking company that generally
contracts an entire trailer-load to a single customer.
This is as opposed to a less-than

truckload (LTL) company that generally
mixes freight from several customers in
each trailer. One advantage Full
Truckload carriers have over LTL
carriers is that freight rarely touched by
the driver, whereas an LTL shipment is
typically on several different trailers.
Because truckload carriers ship a wide

variety of items, a truckload carrier will
often specialize in moving a specific kind
of freight. Some carriers will primarily
transport food and perishable items, whereas others may specialize in moving poisonous and hazardous
materials. Many motor carriers will only transport specific types of freight because different equipment
and insurance may be required for the load.
Truckload (TL) carriers usually charge a flat rate or by the mile. The rate varies depending on the
distance, geographic location of the delivery, items transported, equipment type required, and service
times required.
Project Movements
When you are transporting freight for “Dedicated Lanes” and also “Project Moves” you will need to
have the assistance of a good truckload carrier to handle the logistics of the operation. These types of
freight require you to have a reliable carrier which offers you capacity at all times.
1
Equipment Type - Dry Van
Equipment Type: Dry Van

Rate Type: Flat Rate, Per Mile + FSC
LTL - Pallet Rate
Securement Type: Load Bars, Straps, Blankets
Trailer Length: 28', 32', 36', 40', 42', 43', 45', 48' and 53'
Trailer Width: 96"-102"
Trailer Height: 12.5'-13.5' Overall
Max Load Weight: 46,000 Lbs.
Options:  Rear Swing Doors Or Roll Up Doors
 One Or Two Side Doors
 Rollerbeds
 When used for produce “Produce Vents” are added and the tin
roofs are insulated with Fiberglass or Wood. These are referred
to as “Insulated Vented Vans”. Shippers will occasionally use this
type of equipment in place of a “Refrigerated Trailer” during
peak times of the year when weather and temperatures permit.
Trucking Company Agent Opportunities
Trucking Company: Paschall Truck Lines - http://www.truckloadagents.com

Pinnacle Freight Systems - http://www.pinnacletruck.com
RTS Carriers - http://www.rtscareers.com
Baggett Transportation - http://www.baggetttransport.com
Cardinal Transport - http://www.cardinaltransport.com
2
LTL - Less Than Truck Load
LTL is an acronym for Less Than Truckload. This means a shipment that does not require a full 48 or 53
foot trailer. There are many carriers that specialize or offer this service and like full truck load carriers
the LTL carriers themselves specialize in different services such as lift gate and residential pickups and
deliveries, guaranteed services, protect from freeze, transit, and bottom line cost to name a few.
Rates for LTL freight are determined by class, weight, pick up and destination zip codes (in the
transportation industry this is commonly
referred to as the “Freight Lane”), and any
additional services required to meet the
shipper’s and consignee’s needs.
Carriers will offer shippers and brokers

discounts for freight that they are wanting
to secure for business. The amount of
discount is negotiated with the carrier and
FAK’s (freight of all kinds) maybe offered
to lessen the perceived cost of shipments
in addition to the discounted rates.
How Does The LTL Model Work?
Pickup/delivery drivers usually have set routes, which they travel every day, or several times a week, so
the driver has an opportunity to develop a rapport with his customers. Once the driver has filled his
trailer or completed his assigned route, he returns to his terminal for unloading. The trailer is unloaded
and the individual shipments are then weighed and inspected to verify their conformity to the
description contained in the accompanying paperwork.
Transit times for LTL freight are longer than for FTL. LTL transit times are not directly related only to
the distance between shipper and consignee. Instead, LTL transit times are dependent upon the
makeup of the network of Terminals and Break bulks that are operated by a given carrier and that
carrier is beyond agents and interline partners.
3
What Factors Go Into Determining Freight Class?
Before you determine your freight class for your shipment, you must identify certain factors about your
specific freight. Freight class is based on weight, length and height, density, ease of handling, value and
liability from things like theft, damage, break-ability and spoilage. The definitions for each are as follows:
 (Weight, Length, Height) Density and Value: Density guidelines assign classification 50 to
freight that weighs 50 pounds per cubic foot.
 Stow-ability: Most freight stows well in trucks, trains and boats, but some articles are regulated
by the government or carrier policies. Some items cannot be loaded together. Hazardous
materials are transported in specific manners. Excessive weight, length or protrusions can make
freight impossible to load with other freight. The absence of load-bearing surfaces makes
freight impossible to stack. A quantifiable stow-ability classification represents the difficulty in
loading and carrying these items.
 Handling: Most freight is loaded with mechanical equipment and poses no handling difficulties,
but some freight, due to weight, shape, fragility or hazardous properties, requires special
attention.
 Liability: Liability is probability of freight theft or damage, or damage to adjacent freight.
How To Determine Freight Class
Step 1. Measure the height, width, and depth of the shipment in inches. Measure to the farthest points,
including skids or other packaging. On shipments with multiple pieces, repeat step 1 for each piece.
Step 2. Multiply the three measurements (height x width x depth). The result is the total cubic inches of
the shipment. If you have multiple pieces, multiply the height x width x depth for each piece. Take the
results for each piece and add them together to get the total cubic inches
Step 3. Divide the total cubic inches by 1,728 (the number of cubic inches in a cubic foot). The result is
the cubic feet of the shipment.
Step 4. Divide the weight (in pounds) of the shipment by the total cubic feet. The result is the pounds
per cubic foot, i.e., density. For multiple pieces, be sure to add the weight of each piece together before
dividing by the total cubic feet of the shipment.
 Round fractions to the nearest full cubic foot number.

 Multiply 42" x 48" x 48" = 96,768 cubic inches
 Divide 96,768 by 1,728 = 56 cubic feet
 Divide 500 pounds by 56 cubic feet = 8.9 pounds per cubic feet (PCF), i.e., density
4
Top Less-Than-Truckload Carriers
Carrier Name Phone Number Website

FEDEX Freight (888) 465-5646 http://www.fedex.com
Con-Way Freight (800) 426-6929 https://www.con-way.com
YRC Freight (800) 610-6500 http://yrc.com
UPS Freight (866) 598-5814 http://www.upsfreight.com
Old Dominion Freight Lines (800) 432-6335 https://www.odfl.com
ABF Freight Systems (800) 610-5544 http://www.abfs.com
Estes Express Lines (866) 378-3748 https://www.estes-express.com
YRC Regional (866) 465-5263 http://www.yrcregional.com
R + L Carriers (800) 543-5589 http://www.rlcarriers.com
Saia Motor Freight Line (800) 765-7242 http://www.saia.com
Southeastern Freight Lines (800) 637-7335 https://www.sefl.com
Vitran Express (416) 798-4965 www.vitran.com
Averitt Express (800) 283-7488 https://www.averittexpress.com
Roadrunner Transportation (888) 350-7337 https://www.rrts.com
AAA Cooper (800) 633-7571 http://www.aaacooper.com
Central Transport Int’l (586) 939-7000 http://www.centraltransportint.com
Dayton Freight Lines (800) 860-5102 https://www.daytonfreight.com
New England Motor Freight (908) 965-0100 http://www.nemf.com
A. Duie Pyle (800) 523−5020 http://www.aduiepyle.com
Pitt-Ohio Express (877) 366-2449 http://www.pittohio.com
Central Freight Lines (800) 782-5036 http://www.centralfreight.com
Daylight Transport (800) 468-9999 http://www.dylt.com
Oak Harbor Freight Lines (800) 858-8815 http://www.oakh.com
Wilson Trucking (540) 949-3200 http://www.wilsontrucking.com
5
Flatbed Freight
One of the largest facets of the transportation industry is industrial freight. This freight will typically
consist of many types of freight from a range of industry sectors. Your loads could move as little as 25
miles and up to 3000 miles depending upon your customer. This type of freight is typically very easy to
move, as there are rarely any claims involved with it. Rates tend to be good year round for this type of
freight because it is not a seasonal product.
There are many different freight and equipment types involved. The equipment you select will depend
on the freight type transported. Even though almost every type of trailer will have the ability of
transporting most freight types, certain trailers will be able to transport it more economically.
Freight Types
 Cable Reels
 Steel Plate
 Steel Coils
 Pipe
 PVC
 Towers
 Tubing
 Building Materials
 Machinery
 Lumber
Information Needed For Freight Quotes
When preparing a freight rate quote for your customer, you will need the exact measurements to give
to your trucking company. If you have the wrong dimensions in length, width or height can mean
hundreds to thousands of dollars in additional costs assessed by a trucking company. You must also
have the exact weight of the load.
Here is a general guide for “LEGAL” dimensions. For a flatbed, a legal load must not exceed these
measurements and weights:
 Length - 65’ (3’ Overhang Is Acceptable In Some States)

 Width - 8’6” (Any Load Exceeding Width Will Require Permitting)
 Height - 13’6” (Loads Exceeding This Height Will Require Permits In Most States)
 Gross Weight - 80,000 lbs.
6
Equipment Type - Flatbed
Equipment Type: Flatbed

Rate Type: Flat Rate, Per Mile + FSC, Hundred Weight CWT
LTL - Pallet Rate, Partial Truckloads
Trailer Length: 40’, 48’, 53’, 65’ – 70’ Extendable
Deck Height: 5’ (Dock Height)
Securement: Straps, Chains and Binders
Dunnage: Wood, Chocks, Blocks, Coil Racks, Corner Protectors, Pipe Stakes
Tarp Types: Steel, Lumber, Mesh, Smoke
Options:  Air Ride Trailers
 Side Kits
 Conestoga’s
 Extendable Trailer Lengths To 150’
Trucking Company: Fikes Truck Lines - http://www.fikes.com

Trans United - http://www.transunited.com
Admiral Merchants Motor Freight - http://www.ammf.com
Tennessee Steel Haulers - http://www.tenh.com
Sammons Trucking - http://www.sammonstrucking.com
Evans Delivery - http://www.landtrans.net
Mason-Dixon Lines - http://www.madl.com
Mercer Transportation - https://mercertown.com
Matson America - http://www.matson.com
7
Equipment Type - Step Deck
Equipment Type: Step Deck

Rate Type: Flat Rate, Per Mile + FSC, Hundred Weight CWT
LTL - Pallet Rate, Partial Truckloads
Front Deck Height: 5’ (Dock Height)
Rear Deck Height: 36” - 42” Depending On Trailer Manufacturer
 Extendable Trailer Lengths To 150’
 Ramps
 Load Levelers
Trucking Company: Bennett - http://www.bennettig.com

Landstar - http://www.landstar.com
Universal AM-CAN - http://www.uacl.com
Greatwide Truckload Management - http://www.greatwide-tm.com
8
Overweight - Over Dimensional Freight
The legal dimensions and weights vary between countries and regions within a country. A vehicle, which
exceeds the legal dimensions usually, requires a special permit, which requires extra fees to be paid in
order for the oversize/overweight vehicle to legally travel on the roadways. The permit usually specifies
a route the load must follow as well as the dates and times during which the load may travel.
An oversize load (or overweight load) is a load that exceeds the standard or ordinary legal size and/or
weight limits for a specified portion of road, highway or other transport infrastructure, such as
airfreight or water freight. There are also load per axle limits. However, a load that exceeds the per-axle
limits, but not the overall weight limits is not overweight.
Oversize Load Examples
 Cranes
 Wheel Loaders
 Bridge Beams
 Generators
 Windmills
 Combines
 Pressure Vessels
 Storage Tanks
 Oil Rigs
Legal Load Dimensions
Load size is regulated both by federal and state laws. While the following size restrictions apply in most
situations, there can be some variation.
 Load Width - 8'6" (102")

 Load Height - 13'6" (Some Western States Allow 14' High Loads)
 Load Length - The length limit varies depending on whether the load travels on the Federal
Interstate system, U S Highways or State highways. In some situations, loads can overhang 4'
off a 48' trailer. No overhang is allowed on 53' trailers. Loads exceeding 53' can be transported
on properly permitted stretch trailers.
9
Machinery Transport
When considering movement of an “Over Dimensional Load or Oversized Load” you will need to
get very specific information for the carrier to give you an accurate quote. The general information
required is typically:
 Load Origin & Destination  Load Weight
 Dimensions - ( L X W X H )  Specifications & Drawings
 Make & Model Of Machinery  Routes
 Pilot Cars  Permits
Action Plan / Check List
I must caution any new freight broker or agent prior to moving any over dimensional shipment. I myself
only let my most experienced agents undertake these loads as you could easily lose more than what you
would gain in profit. You must possess a basic knowledge of heavy equipment transport. Specialized
carriers transport these loads with the equipment needed.
I. Calculate the Length, Width, Height and overall Weight of the commodity you will transport.
Know the specific location of pick-up and delivery, and have detailed directions to these
locations.
II. Find the Motor Carrier and Equipment necessary for the load. Check his references and
insurance if you have not used him before. When issuing the rate confirmation and load details
make sure this is an “All In” rate for the load. If this does not happen, you could be in for a ton of
“Accessorial Charges” when the invoice comes for the transport of the freight.
III. Make the “Riggers” the responsibility of the shipper or carrier. You are a freight broker not a
carrier or rigging company. They specialize in this you will only muddy the waters if you get
involved.
IV. Communicate with the Motor Carrier to determine how long it takes to acquire the load permits;
a permit is required for every state through which the load travels. The transporting must take
place during daylight hours with exception to a few cities to limit you to nighttime transport
because of traffic congestion. You are also set within a restricted number of days because of your
permits.
V. Plan the pick-up and delivery dates accordingly, and allow additional time for limited driving
time for oversize and overweight loads.
10
Oversize Load Permits
Vehicles and Loads that exceed legal size or weight limits within a given jurisdiction need an
oversize/overweight (OS/OW) permit and route from the DOT. It is the responsibility of the motor
carrier to acquire the correct permits for transport. If the motor carrier fails to obtain the proper
permits, he could face stiff penalties.
Freight Brokers will occasionally obtain the necessary permits for the load in order to gain more profit
from the load. Permits are obtained from the Department of Transportation in the states in which your
load will travel. The Federal government does not issue permits for oversize or overweight vehicles.
This is a State option.
Non-Divisible Loads:
Permits may be issued by the States without regard to the axle, gross, or Federal bridge formula
requirements for non-divisible vehicles or loads. Non-Divisible is defined as any load or vehicle
exceeding applicable length or weight limits which, if separated into smaller loads or vehicles, would:
 Compromise the intended use of the vehicle, i.e., make it unable to perform the function for
which it was intended;
 Destroy the value of the load or vehicle, i.e., make it unusable for its intended purpose; or
 Require more than 8 work hours to dismantle using appropriate equipment. The applicant for a
Non-Divisible load permit has the burden of proof as to the number of work hours required to
dismantle the load.
Divisible Loads:
Designated divisible load permits may be issued by the State based upon historic State "Grandfather"
rights or Congressional authorization for a State-specific commodity or route movement at a greater
size or weight.
State grandfathered rights regarding longer combination vehicles can be found in Appendix C to 23
CFR Part 658-Trucks Over 80,000 Pounds on the Interstate System and Trucks Over STAA Lengths
on the National Network.
Oversize Permits:
States may grant special use permits to motor vehicles, including manufactured housing that exceed the
Federal 102” width limitation.
11
State Oversize/Overweight Load Permit Contacts
To obtain State permits, you will need to contact the State(s) in which you wish to travel. See below for
the State permitting web site, or contact the State permitting office by telephone.
State / Website Telephone State / Website Telephone

Alabama (800) 499-2782 Ohio (614) 351-2300
Alaska (907) 365-1200 Oklahoma (877) 425-2390
Arizona (602) 771-2960 Oregon (503) 373-0000
Arkansas (501) 569-2381 Pennsylvania (717) 787-4680
California (916) 322-1297 Rhode Island (401) 946-0090
Colorado (800) 350-3765 South Carolina (877) 349-7190
Connecticut (860) 594-2878 South Dakota (888) 978-7249
Delaware (302) 744-2700 Tennessee (615) 741-3821
District Of Columbia (202) 442-4670 Texas (800) 299-1700
Florida (850) 410-5777 Utah (801) 965-4892
Georgia (888) 262-8306 Vermont (802) 828-2064
Hawaii (808) 831-6712 Virginia (804) 249-5130
Idaho (208) 334-8420 Washington (360) 704-6340
Illinois (217) 785-1477 West Virginia (304) 558-0384
Indiana (317) 615-7320 Wisconsin (608) 266-7320
Iowa (515) 237-3264 Wyoming (307) 777-4376
Kansas (785) 368-6501
Kentucky (502) 564-1257 Canadian Provinces
Louisiana (800) 654-1433 Province / Website Telephone
Maine (207) 624-9000 Alberta (800) 662-7138
Maryland (800) 846-6435 British Columbia (800)559-9688
Massachusetts (781) 431-5148 Manitoba (877) 812-0009
Michigan (844) 636-8373 New Brunswick (888) 762-8600
Minnesota (651) 296-6000 Newfoundland/Labrador (709) 729-0359
Mississippi (888) 737-0061 Northwest Territories (867) 984-3341
Missouri (866) 831-6277 Nova Scotia (902) 424-5851
Montana (406) 444-7262 Nunavut (867) 975-5300
Nebraska (402) 471-0034 Ontario (800) 387-7736
Nevada (800) 552-2127 Prince Edward Island (902) 368-4291
New Hampshire (603) 271-2691 Quebec (800) 567-7775
New Jersey (609) 530-6089 Saskatchewan (800) 667-7575
New Mexico (505) 827-5540 Yukon Territory (867) 667-5644
New York (888) 783-1685
North Carolina (888) 574-6683
North Dakota (701) 328-2621
12
Federal Commercial Vehicle Size Limits on the National Network
Overall Vehicle Length No federal length limit is imposed on most truck tractor-semitrailers
operation on the National Network.
Exception: On the National Network, combination vehicles (truck tractor

plus semitrailer or trailer) designed and used specifically to carry
automobiles or boats in specially designed racks may not exceed a
maximum overall vehicle length of 65 feet, or 75 feet, depending on the
type of connection between the tractor and trailer.
Trailer Length Federal law provides that no state may impose a length limitation of less
than 48 feet (or longer if provided for by grandfather rights) on a
semitrailer operating in any truck tractor-semitrailer combination on the
National Network. (Note: A state may permit longer trailers to operate
on its National Network highways.)
Similarly, federal law provides that no state may impose a length

limitation of less than 28 feet on a semitrailer or trailer operating in a
truck tractor-semitrailer-trailer (twin-trailer) combination on the
National Network.
Vehicle Width On the National Network, no state may impose a width limitation of more
or less than 102 inches. Safety devices (e.g., mirrors, handholds)
necessary for the safe and efficient operation of motor vehicles may not
be included in the calculation of width.
Vehicle Height No federal vehicle height limit is imposed. State standards range from
13.6 feet to 14.6 feet.
13
Load Specifications
When arranging for the transportation for Oversize Loads or “Heavy Haul” loads you will have to know
how to interpret different spec sheets and/or line drawings. I have included a sample Specification
sheet for you to examine on the following pages.
Shipping Length (Using Example Provided)
When determining the length of the unit to be shipped. You will need to ascertain the overall length of
the “Tracks” of the machine. This can be found in “Figure 5” of the following pages. In this case the
length of the tracks is (16’6”). We need this information to know what size “Well” spacing would be
needed for the equipment contracted. Most generally an RGN will have a (29’6”) spacing. Extended
trailer versions of this type of equipment are available.
Shipping Width
When determining the width of the unit to shipped. We would obtain the dimensions from the farthest
points of both sides. In this case “Figure 8” will provide this. You will notice there are (4) different
widths. To determine the exact width we would need the serial number of the machine. We will use the
widest provided which would be “11’3”.
Shipping Height
When determining the shipping height of the unit. We would find the figure to the highest point of the
machinery. “Figure 1” illustrates this for us. The height is “12’0” to its farthest point depending on
model.
Final Transport Dimensions
 Length - 36’6” - Overall Length (16’6”) - Required In The Well

 Width - 11’3”
 Height - 12’0”
 Weight - 86,200 Lbs
14
15
16
Equipment Type - Specialized

Equipment Type: Double Drop | RGN - Removable Gooseneck
Rate Type: Flat Rate, Per Mile + FSC, $ - Per Mile, Per Axle
Deck Height: Varies By Manufacturer - 18” - 24”
 Out Riggers
 Boosters - Stingers
 Extendables
Trucking Company: Trans United - http://www.transunited.com

Admiral Merchants Motor Freight - http://www.ammf.com
Sammons Trucking - http://www.sammonstrucking.com
Mercer Transportation - https://mercertown.com
17
Pilot Cars
An oversize load escort or pilot car is a

marked vehicle with oversize load warning
signs, amber lights and flags. The pilot car will
operate in front of or behind a large vehicle
that exceeds normal vehicle dimensions in
length, width or height and/or overhang. The
escort vehicle protects the oversize load, and
warns and protects other roadway users.
Their purpose is to warn drivers about the

approaching oversize load. The pilot car warns drivers in the opposite lane to be aware of the load. The
driver of the pilot car must communicate with the driver with a CB Radio to warn him or her about any
low bridges, wires, obstacles, etc.
Pilot Car / Escort Responsibilities:
 Make highways safer for the drivers of the oversize load and public
 Prevent damage to the roadway system
 Prevent damage to the loads that are being transported
 Reduce delays in the normal flow of traffic
These Could Include But Not Be Limited Too;
 Lead Cars / Chase Cars - This is an escort vehicle, which will display signage on its front and
rear bumper of an impending Oversize / Overweight load that is approaching or passing. These
are required as part of the permitting process in individual states and cities. These vehicles are
generally in the front of the load approximately (1) mile, and on occasion if required by
jurisdiction a chase car will also be required in the rear of the load.
 Pole Cars - This is an escort vehicle that has a pole affixed to the front of the bumper for
measuring the height of a load. This required on loads generally over 14’3” tall but can be also
required for less depending on the specific Department of Transportation laws where the load
is travelling through. The use of this vehicle will insure the load will be able to travel under
bridges and overpasses safely without obstruction.
Resources
 US Pilot Cars - http://www.uspilotcars.com
18
Refrigerated Freight
There are many different types of freight available when transporting temperature-controlled
products. They range from Fresh and Frozen Foods, Produce or Pharmaceuticals to Seafood.
Freight Types
America’s insatiable appetite for food and delicacies keep “Reefers” running continuously from all parts
of the country. Produce Warehouses, Wholesalers and Supermarkets need to replenish their
inventories daily with fresh vegetables, meats and dairy to keep up with the demand of the American
consumer.
Potential Shippers
 Meat Processors  Poultry Processors

 Dairy Farms  Egg Farms
 Vegetable Growers & Packers  Fruit Growers & Packers
 Produce Coolers  Produce Brokers
 Produce Wholesalers  Pharmaceutical Manufacturer
 Supermarket Chains  Film Manufacturers
Meat, Poultry, Dairy & Seafood Processors
Transporting foods whether they be fresh or frozen offers

many opportunities for a freight broker. America’s food
producers require consistent availability of carrier resources
to keep the process flowing smoothly. You will find that many
of these companies will require motor carriers to transport
the cargo to “Dedicated” freight lanes on a daily, weekly or
monthly basis. In order to be successful as a freight broker
for this type of freight an expansive carrier database of
refrigerated carriers will be required.
Produce
Produce loads are generally very competitive for pricing, as the shipper needs to keep transportation
cost minimal. Depending on the type of produce transported, shippers will require the carrier to load
minimum amounts or pay on weight. Shippers do this so that the carrier loads the maximum amount of
product that the trailer can hold. This is known as a CWT or hundred weight rate. This rate will typically
apply to Onions, Potatoes, Apples, and Watermelons.
19
General Procedures
When you initially begin to arrange the transportation of any temperature controlled product you will
need to learn the process in which the loading, transport and eventually unloading process works with
the motor carrier. We will outline the main points below. I would recommend that you consult with the
driver on the first few loads to become familiar with the process.
Refrigerated freight is perishable to a

greater or lesser degree, and its safe
transport depends on maintaining suitable
storage conditions. Refrigerated freight
include both frozen and chilled goods, the
latter including fresh produce.
Generally, frozen foods will not be

perishable if over cooled, whereas chilled
goods can be damaged by low
temperatures, either by freezing or by
chilling injury to fresh produce.
Successful transportation is dependent on the carrier instructions, which define the conditions in which
the goods are to be stowed and transported. If these instructions are incomplete, inadequate,
contradictory, or wrong, then problems can be expected. For the shipper, there is the risk of loss of
cargo. For the carrier, there is the risk of a claim even if the goods are undamaged.
Temperature Ranges
Temperature swings of 5 or 10 degrees over and under the set point are tolerable for many
commodities. But some cargoes require steady temps, which require continuous running. And some
shippers demand continuous running even though their products don't need it. Acceptable bands of
temperatures should be negotiated with each shipper prior to signing a contract or picking up a load, so
drivers can correctly set the unit's controls to satisfy the shipper and save as much operating money as
possible.
Products such as beverages, paint, canned goods and candy are safe within wide temperature ranges,
even if shippers want narrower ranges. A wider range might save 50 percent in fuel. Learn what the safe
temperature ranges are for every commodity hauled and try to reason with customers about settings.
20
The Players
 Consignor, is the person sending a shipment to be delivered.

 Consignee, is the person to whom the shipment is to be delivered.
Consigner Procedures
Here are general procedures to list on the “Carrier Rate Confirmation” that should be followed prior to
loading.
 Motor Carriers should arrive “Clean & Dry” to load.

Occasionally your driver will have previously hauled a load
which contained meat, chicken or even seafood. There might be
residue of blood left in the trailer. This is a cross contamination
threat. The driver should be instructed to complete a trailer
wash out and dry the trailer appropriately prior to loading.
 Trailers should be “Pre-Cooled” to desired temperature notated
on the BOL.
 Appointment times should be pre-scheduled by the dispatcher
booking the load.
 If a “Pallet Exchange” is required, make sure your carrier has the
appropriate amount of pallets needed for the exchange or the
shipper will deduct the price of pallets from the load.
Consignee Procedures
 Here are general procedures to list on the “Carrier Rate Confirmation” that should be followed
when unloading.
 The motor carrier should have the consignee inspect the load to make sure it is free from
deficiencies. If a problem occurs, have the carrier contact you immediately. This will keep you
“In the Loop” in case of a possible claim.
 Make sure the carrier has the consignee sign the BOL as “Accepted in Good Condition”. This
will state that the load is “Free of Claims”.
21
TRU - Carb Compliancy
Out-Of-State Freight Brokers CARB Compliance Rules
Freight Brokers and other Freight Forwarders are required to verify that reefer trucks hauling for them
in California have CARB-compliant Transport Refrigeration Units (TRU.)
That means that if you are hiring, or contracting with, a

carrier to transport perishable goods through California, you
must:
 Require the carrier you hire, or contract with, to use

only CARB-compliant TRUs.
 Provide your contact information to the carrier so
that drivers can present it to enforcement personnel
upon request.
Regardless of where your business is located, these requirements apply to every Freight Broker or
Freight Forwarder that hires a carrier to transport reefer freight within the state of California.
Follow these tips to make sure your carriers are compliant. Request carriers to provide proof of
compliance, such as the California’s Air Resources Board Equipment Registration (ARBER) certification
page.
Check CARB’s public databases to verify a carrier’s compliance. There are two lists:
 Carriers that are 100% compliant: https://arber.arb.ca.gov/publicTCCReports.arb

 Compliance status for the TRU itself: https://arber.arb.ca.gov/publicTruSearch.arb
Good Measures
 When drafting the contract for a load that will go through California, include language that
requires the carrier to use CARB-compliant equipment. Have the carrier initial or sign that
statement and return it with the Carrier Set-Up paperwork.
 Document the steps you took to verify that the carrier was required and confirmed to use a
CARB-compliant TRU. (Request A Copy Of Certificate)
 Maintain your own database of carriers with verified CARB-compliant TRUs, and remove all
other carriers from the database until they can demonstrate compliance.
22
Equipment Type - Refrigerated (Reefer)
Reefer Trailers are used in the transportation industry to transport temperature-sensitive goods. In
general, these haulers are refrigerated “REEFER” is slang for “REFRIGERATED” though they may also
be heated.
Equipment Type: Refrigerated Trailer “REEFER”

Rate Type: Flat Rate, Per Mile + FSC, CWT Loads
Trailer Length: 28’, 48’, 53’
Deck Height: 5’ - Dock Height
Securement: Load Bars, Straps
 Bulk Heads
Trucking Company: RFX - http://www.rfxinc.com

CR England - http://www.crengland.com
Pioneer Transfer - www.pioneertransfer.com
Werner - http://www.werner.com
23
Hazmat (Hazardous Materials)
Any person who offers for transportation or transports any hazardous material shall comply with 172
of Subpart F of the 49 CFR code. Part 172 is perhaps the most important of the Hazardous Material
Regulations due to the fact it contains the Hazardous Materials Table, List of Hazardous Substance, List
of Marine Pollutants as well as subparts on marking, shipping papers, labeling, emergency response,
training, security and placards.
Before anyone can transport any type of Hazardous Material, they must first determine if the product
that they are going to transport requires placards. Placards play a critical role in the identification
process of the hazard class.
There Are Nine (9) Different Hazardous Materials Classes
1) Class 1 - Explosives
2) Class 2 - Gas, Non-Flammable, Oxygen, Flammable Gas and Poison Gas
3) Class 3 - Flammable, Combustible
4) Class 4 - Flammable Solid, Spontaneously Combustible when wet
5) Class 5 - Oxidizer, Organic Peroxide
6) Class 6 - Poison and Inhalation Hazard
7) Class 7 - Radioactive
8) Class 8 - Corrosive
9) Class 9 - Not Required for Domestic Transportation
Once the product has been identified on the shipping papers as a hazardous material, when is it
required to place placards on your tractor trailer for identification and how many placards do I need.
Each freight container containing any quantity of a hazardous material must be placarded on each side
and each end with the specific type of placards
Each person who transports or offers for transport hazardous

materials (hazmat), is a hazmat employer or employee. The
Federal Hazardous Materials Regulations (HMR) [located in
Title 49, Code of Federal Regulations (49 CFR)] require
hazmat employers to train, test, and maintain records of this
training for all their hazmat employees. This includes any
employee that has responsibility for preparing
hazmat for shipment or for transporting the shipment.
24
Hazmat Classes - Placards
25
Freight Broker Regulations
Freight Brokers & Forwarding Agents-When acting for a shipper of hazmat, the firm acting for that
shipper is equally liable. You must carry the same HAZMAT certifications as
a carrier if you want to move this type of freight.
Know Your Shipper - Are hazmat’s shipped? If so, what kind and in what
quantity? A broker must know when hazmat is being shipped. This involves
more than just examination of documents. Is the material in DOT/UN
authorized packages?
Verify Hazmat Descriptions - Does it match the proper shipping name,
hazard class or division, Identification Number, and Packaging Group listed
in the Hazardous Material Table (HMT) in 172.101? Is there a conflict
between the documentation and the package marking? Is there an
emergency response telephone number on the shipping paper? Does emergency response information
accompany the shipping paper?
Provide Correct Documentation To The Carrier - Keep in mind that you are assuming shipper
responsibility for a hazmat shipment made by another party. You must rely on the shipper for correct
documentation and packaging. When discrepancies are noted, it is your responsibility to be sure it is
corrected PRIOR to offering the shipment for movement. The documentation you give is the only
information that the carrier receives.
Resources
HAZMAT Online Training - http://www.hazmatschool.com
26
Equipment Type - Hoppers (Agricultural Bulk Freight)
Equipment Type: Hopper

Rate Type: Flat Rate, Hundred Weight CWT, Bushel, Yard, Ton
Trailer Length: 40’,High Side, Low Side
Tarp Types: Mesh Tarps
Commodities:  Corn  Beans

 Cotton Seed  Rice
 Corn Meal  Feeds
 Gravel  Sand
Load Board: http://www.bulkloads.com

http://www.hoploads.com
27
Equipment Type - Containers
Drayage is the transport of goods over a short distance, often as part of a longer overall move and is
typically completed in a single work shift. Some research defines it specifically as "a truck pickup from or
delivery to a seaport, border point, inland port, or intermodal terminal with both the trip origin and
destination in the same urban area. Container carriers are designed to transport standard international
cargo containers of 20'--45'. Some models are able to transport non-standard and oversize containers.
Equipment Type: Skeletal Carrier | Containers

Rate Type: Flat Rate
Trailer Length: 40’
Load Board: http://www.drayage.com
28
Intermodal Freight
Intermodal freight transport involves the transportation of freight in an intermodal container or

vehicle, using multiple modes of transportation (rail, ship, and truck), without any handling of the freight
itself when changing modes. The method reduces cargo handling, and so improves security, reduces
damages and losses, and allows freight to be transported faster, reduced costs versus over road
trucking is the key benefit for intra-continental use.
Rail Transport
In North America, containers are often shipped by rail in container well cars. These cars resemble
flatcars but the newer ones have a container-sized depression, or well, in the middle of the car. This
depression allows sufficient clearance to allow two containers to be loaded in the car in a "Double
Stack" arrangement. The newer container cars also are specifically built as a small-articulated "unit",
most commonly in components of three or five, whereby two components are connected by a single
bogie as opposed to two bogies, one on each car.
It is also common in North America to transport semi-trailers on railway flatcars or spine cars, an
arrangement called "Piggyback" or TOFC (Trailer on Flatcar) to distinguish it from container on flatcar
(COFC).
Major Intermodal Carriers

 CSX Freight Logistics - http://www.csx.com
 BNSF - http://www.bnsf.com
 Norfolk Southern - http://www.nscorp.com
 CN Rail Services - http://www.cn.ca
 Union Pacific - http://www.up.com
 Canadian Pacific - http://www.cpr.ca
 Kansas City Southern -
http://www.kcsouthern.com
29
Equipment Type - Intermodal Rail Cars
30
Equipment Type -Tankers (Food Grade – Chemicals)
Freight Types
Tanker trailers are designed to carry a wide variety of fluid cargo. Some fluid cargo requires specially
designed tanker trailers. (Example) tankers designed to transport caustic soda and certain acids require
sidewalls, exterior paint and fittings that will withstand the corrosive effects of the cargo.
Equipment Type: Tanker
Rate Type: Flat Rate, Volume Rate - Gallon
Max Load Weight: 9000 Gallons Depending On Suspension
Options:  Bulk Heads  Cooking Oils
 Belly Cabinets  Corn Syrups
 Discharge Pumps  Orange Juice
 Metering Equipment  Milk
Chemicals Food Grade

 
Commodities:  Refined Gasoline  Beans
 Heating Oils  Rice
 Natural Gas  Feeds
 Industrial Chemicals  Sand
Load Board: http://www.bulkloads.com
31
Equipment Type - Auto Transport
Auto transport tractor-trailers are designed to transport automobiles, sport utility vehicles, and small
vans, from manufacturing plants to distributors, from manufacturing plants to ports, but most
commonly from seaports (Ro-Ro Vessels) to inland distributors.
Variations
 Auto transporters come in two general configurations:

 Truck tractor trailer combinations where the truck tractor transports up to three vehicles and
the trailer transports up to six vehicles.
 Trailers designed to transport up to nine vehicles pulled by a standard truck tractor.
 Specially designed covered auto transport trailers are available for the transport of high value
Equipment Type: Auto Transport Carrier (RO-RO)

Rate Type: Flat Rate, Per Unit
Options:  Lifts
 Hydraulics
Load Board: http://www.centralautodispatch.com
32
Power Only
Power-Only shipping is a trucking industry term for using an independent driver’s or a trucking
company’s tractor to move a trailer that you has been purchased or leased. There are also many types
of trailers that are designed to remain in one place for an extended period of time.
Power Only Freight:
 Trailer Manufacturers
 Trailer Leasing
 Job Sites
 Exhibits and Promotions
Drop and Hook
“Drop and Hook” or “Trailer Spotting” is for major distribution centers or manufacturers that will load
the trailers out and require a “Power Only Tractor” to pick the loaded trailer up and leave an empty one.
Manufacturers often load products directly from the assembly line into the empty trailer.
33
Cross Border Freight Transport
CANADA
Pre-Arrival Review System (Pars)
The Pre-Arrival Review System (PARS) is a
Canada Border Services Agency (CBSA)
(formerly the Canada Customs Revenue Agency (CCRA) border cargo release mechanism for those
importers with RMD (Release on Minimum Documentation) privileges that expedites the release of
commercial shipments to Canada.
The Canadian PARS system is similar to the U.S. Pre-Arrival Processing System (PAPS) system, but
where PAPS applies to shipments from Canada to the U.S., PARS applies to shipments from the U.S. to
Canada. The key element of PARS is a bar-coded cargo control number, which the carrier or U.S.
exporter applies to the top right-hand corner of the original CBSA invoice for each shipment.
 Certificate(s) of origin
 Invoices
 Shippers Export Declarations, etc.
The PARS can process goods that require permits or certificates. A copy
of the complete set of documentation, including the bar-coded invoice,
is sent to the Canadian importer or broker by facsimile before arrival of
the shipment in Canada. The importer or broker then submits their
import request to CBSA. "PARS" must be clearly marked by the
importer or customs broker on the PARS release package.
Motor Carriers
When shipping goods into Canada your motor carrier must possess
Canadian Motor Carrier Authority. This is the authorization for the carrier to transport goods to and
from Canada. The truck driver must also have the following qualifying items to cross the border.
 Canada Border Services Agency Web Site at: www.cbsa-asfc.gc.ca
34
Cross Border Freight Transport
MEXICO
Motor Carrier Requirements
 Mexican Operating Authority

 Enterprise Driver’s License or Passport
 Birth Certificate
Your shipper will probably have an international

freight forwarder or customs broker who is
assisting the transfer of his freight. These agents
are familiar with the import and export
regulations of Mexico and the documents
related to foreign trade. Exporters should
seriously consider having the freight forwarder
handle the formidable amount of documentation that exporting requires as forwarders are specialists
in this process.
The following documents are commonly used in exporting; but which of them are necessary in a
particular transaction depends on the requirements of the U.S. government and the government of the
importing country.
Required Documents
 Shippers Export Declaration

 Certified Bill of Lading
 Commercial Invoice
 Consular Invoice - Certified by the consular official of the foreign country stationed here, it is
used by the country's customs officials to verify the value, quantity, and nature of the shipment.
 A NAFTA Certificate of Origin is required for products traded among the NAFTA countries
(Canada, the United States, and Mexico).
35
Equipment Abbreviations
2016
Shippers

Shippers
Creating Customer Accounts
Developing Niche Markets
Freight brokering is a very competitive arena, having a well-

defined target market is more important than ever. Small freight
brokers can effectively compete with large companies by
targeting a niche market.
Targeting a specific niche does not mean that you have to

exclude people that do not fit your criteria from using your
services. Rather, niche marketing allows you to focus your
energy and brand your services on a specific freight niche that is
more likely to utilize services provided by your company than other markets. This is a much more
efficient, and effective way to reach potential shippers and generate business
I recommend targeting a specific market segment. When you develop certain markets, you will find it
is easier to learn the freight rates and build a carrier base to transport your loads. When you are
starting in the business initially, it is easier to focus on niche freight markets versus all freight types.
Once you have gained a firsthand knowledge of a particular industry type then you should spread out
and expand your horizons into another.
You Can Target Your Business Based On The Following Criteria:
 Geographic Location - Define your niche by market area.

 Freight Type - General Freight, Machinery, Food, Agricultural Commodities etc.
 Equipment Type - What type of equipment is required for the freight?
In choosing your particular demographic, you need to consider what type of cargo you would be most
comfortable brokering. You may choose to broker general commodity freight that offers more
stability in rates, or you may want to focus your expertise in niche markets such as agriculture, auto
transport, oversized loads, temperature controlled or hazmat loads.
Who’s In Charge?
Once you have found a shipper, you will want to approach the right person. In this industry, you will
need to talk to the appropriate person in charge. This is generally the "Traffic Manager". Thankfully,
in this industry, the "Go to People" are not that evasive and there are very few loops to jump through
to get to the right person.
Key Contacts
 Transportation Manager
 Traffic Manager
 Logistics Department
1
Shippers
Finding the Right Customer
Pre-Qualifying Prospects
Your freight brokerage or agency will rely on a great deal of cold calls and referrals, the importance of
properly qualifying prospects is essential in obtaining freight that motor carriers will transport for
you. Qualifying your potential shipper will allow you to assess the needs of your shipper prospect and
determine your ability to help him or not.
Freight Brokers save time by canvasing in strategic areas by using the telephone to pre-qualify
potential shippers. Traditional sales calls by appointment may be necessary for some of your shippers
but the majority of your business relationships initially come through phone contact.
I would strongly suggest that you utilize a “Contact Manager” to track your progress of the sales
funnel. You will need to decide the level of potential business through your pre-qualification
interviews. When you start making your call backs to the potential customer organize them from
“Hot to Cold”. Spend most of your time working your hot leads but do not forget about the cold ones
either as business may develop with these prospects later down the road.
You will need to have a predetermined list of questions for the potential shipper. It is essential that
you have these questions memorized so that they will flow naturally when asking them. You should
also compose a list of objections or roadblocks from your shipper. You have to anticipate his
objections with a rebuttal of your own.
Here are some ideas to help you overcome your fears and become a successful negotiator.
Understand your service value. Before you try to quote your freight rates, it is critical that you know
and understand your product and its inherent value to your customers. Your previous customers will
give you quite a bit of ammunition for fending off your competitors’ products and services, as they
will be able to tell you your weak points and your competitors’ strong points (in their eyes). You have
to be open-minded and willing to accept the criticism, and use that criticism to develop stronger value
for your service in order to gain the advantage in selling to potential customers.
2
Shippers
Business Networking
Customer Relationship Management
In order to be successful in the transportation industry

you need to build a network of reliable motor carriers and
a solid customer base. This is a performance-based
industry. In order for the transportation process to run,
smoothly all of the parties involved will need to work
together effectively. You leveraging your motor carrier
contacts effectively by do this. If you perform your
services correctly, this will be a “Win - Win” situation for
everyone.
Strategic Positioning
How will you sell your services effectively? Create a good

sales strategy and stick to it. Before you begin negotiating with the potential shipper, anticipate some
of his objections that you may need to overcome, place an emphasis on service and reliability.
 Customer Service - one of the best-kept secrets of creating a profitable freight brokerage,
agency or trucking company is to provide excellent customer service.
 Reliability - Shippers need someone they can count on. They are not looking for a
transportation provider who is “Here Today and Gone Tomorrow”.
 Solutions - You will need to assess your customer needs and find the appropriate shipping
solution that not only fits within their budget but also allows you many opportunities too.
Competitor Sales Strategy
Knowing your competitors' sales strategy and pricing structure can give you an edge. Before going to
market with your services to a potential shipper, research and study your competition. It can be a
great help if you find out what type of rates they are charging. Understand their price points and their
perceived advantages to your prospect base. Also, know that some of your current customers are
likely shopping around. Keeping your competition in your hip pocket will help you continue to
develop services that provide value to your customers, and will keep you strong at the negotiating
table.
Investigate the Competition
 What is their sales pitch?

 What is their pricing structure?
 What do customers like and dislike about them?
3
Shippers
Basic Shipper Phone Script
Hello, May I Speak With Your Traffic Manager,
Hi, my name is Your Name with Freight Brokerage Name. I represent a National Premier Truck
Brokerage and 3PL that specializes in motor carrier acquisition services for shippers across the
country. We easily facilitate any type of freight movement for all your shipping needs.
TIPS. You should give your customer time to respond to whatever questions you are asking; I would
suggest using a Two Second Pause in between questions...
Sample Questions
 Have you ever used a freight broker before?
 What is your process for me to start moving freight for your company?
 What is the frequency of shipping for your company?
 What do you require when you ship Truckload or LTL services or both?
 Do you have any dedicated lanes in which you require quotes on?
 Do you have any loads moving today, I could possibly get you a quote on?
 Do you have a suggested rate on this load?
Send Him Your Info
You have completed the initial cold call regarding your services to the shipper. You should ask his
permission to send him your information. I would suggest some type of a marketing sheet in PDF
format. You can either fax or email it to him.
Data Collections
I also would suggest you collect as much data on the shipper as possible for future marketing efforts.
Data to be collected is:
 Company and Contact Name
 Direct Phone
 Email Address
Ask For The Order. You should continuously promote your services as the dialogue progresses with the
prospect...You might just close the deal.
Follow Up: Once you have sent him your information package, you should follow up with him a few days
afterward to continue the dialogue you have started and to reinforce you as a salesperson.
Consistency: Shippers like consistency. Stay positive and aggressive on every call to let the traffic
manager know you are hungry for his business. If you follow this pattern, he will eventually give you a
shot at his freight.
4
Shippers
Shipper Rate Negotiations
Every freight broker agent will eventually

encounter the following situation:
1. You Need Customers.

2. You Want To Move The Load.
3. You're Unsure about Freight Rates.
So what do you do? You start lowering your

freight rates rather than negotiate with the
customer. Many freight broker agents are
afraid to stand by their rates because of a
single mistaken assumption: "I'll Lose All My
Customers If I Do Not Concede the Freight
Rate". In reality just the opposite will happen. The customer will since a sign of weakness and
continuously work you on prices from here on out.
Here’s How to Keep the Freight Rate Up!
 You’re Entitled To Make Money
You are entitled to make money for the service. A big mistake a lot of freight broker agents make is
believing they should provide their services for little or no compensation. They either have this
mindset for fear of losing or not gaining the customer. What is reasonable percentage of profit to
make? Whatever you can convince your shipper that your service is worth. Your service has “Value”.
 Confidence
If you want to make a good profit on the loads, you have to believe the services you are performing
are worth the cost. Lack of confidence in yourself, your services or your freight rates will come across
as a sign of weakness to the customer.
 No Apologies and No Excuses
Never apologize for your price structure. If you believe your freight rates are good to go, assume the
sale! You have to portray a mentality to your customer of “It is what it is!” Freight Rates are
determined by numerous factors of which you do not control. Obtain the best rate from the carrier
for the freight transport, add your profit in and present the freight rate to the customer.
5
Shippers
Shipper Rate Negotiations
 Walk Away From The Deal
Even if it’s the shipper of your dreams, if the shipper won’t agree to the freight rate you have assigned
in order to be profitable to the freight brokerage, walk away from the deal. This position more often
than not will get you the freight rate you’re looking for, as the shipper doesn’t want to lose out on the
rate.
 Negotiation Time
The exception to the rules. You want to leave yourself an “Out” of negotiating a lower price but only if
it’s in your best interest. In other words, you will lower your price only if you discover there is a
change in the marketplace.
What Are Those Exceptions?
For Example, I will lower my freight rates

when I find that there is an abundance of
carriers in the market area of the customer.
You might consider offering a discount
freight rate if the customer will assign more
loads or dedicated lanes to you.
 Don’t Give Away The Farm
If you appear too eager to negotiate a

reduced freight rate the shipper will view your services of no value or reduced value. One of my
favorite negotiations that actually happens quite frequently in this industry is from a shipper who
received a freight rate from a competitor of who wanted his business that they offered to transport
his freight with a much cheaper freight rate. My customer tried to convince me that I should lower
my fee, but I refused due the rate being so low, I was convinced my competitor would not be able to
provide a motor carrier for him. At the end of the day it was I thought my competitor could not
produce a motor carrier to transport the freight and he went with my price.
 Lighten Up
You never want to let negotiations become too tense. Always feel free to smile and inject some
humor in the conversation. Lightening up the mood can ingratiate you with your shipper while also
conveying your negotiating strength. If you do not appear to be taking the negotiation extremely
seriously, your opponent may conclude that you are ready to move on if you don’t get the price you
want.
6
Shippers
Negotiating Freight Rates
Negotiating freight rates as a freight broker is very similar to that of an asset-based carrier. Many
freight brokers assume that a motor carrier has more negotiating advantage than a 3PL will have.
This would be true if motor carrier capacity was not an issue:
Freight Broker (Advantages)
 Ability to offered negotiated rates with motor carriers.

 Personal contact and relationship management of shipper accounts.
 Knowledge of freight lanes and rates nationally by equipment type.
 The ability to provide a shipper discounts during peak market periods through negotiations.
Considerations
It is the responsibility of any freight broker to keep the market prices stable for your shippers. This
does not mean you move the freight for cost or that you have to make small profit margins. It means
that you have to provide your customer with freight rates based upon what your carrier network will
transport the goods for and still return a profit.
You have to understand the true cost of moving your freight. You must know how you need for
expenses such as operating cost, surety bond, agent percentage, collections and profit. There is
always a chance that your customer will not pay the freight bill, this would cause you to be upside
down with the load. This means you have to make up those cost in other places or on other loads.
The bottom line is you must understand the “Risk Vs. Reward” that exist on every load, so that when
you are negotiating a freight rate you know when to refuse services to a potential customer because
there is simply no profit in the load.
Customer Relationships
Any successful business relationship is one that benefits both parties.

It must be a “Win-Win” for the potential customer and you the
freight broker too. If you have worked at creating a good logistics
relationship with the shipper, and they refuse to respect the value of
the services you provide then you have to move on to other
customers.
From the initial phone call to the prospective shipper, you have to set
the ground rules with him regarding the expectations on both sides.
Letting him know exactly what you expect up front will help you when proposing a freight rate,
ultimately more of your freight quotes are accepted in the end if you initially provide a “Service
Value” to the customer.
7
Shippers
Negotiation Tips and Tricks
Strategy # 1 (The Flinch)

Customer: "What! How much!! $ 2950! I’ve already got a better rate than that." This is one of the
negotiation tips working for the shipper. Here the customer acts as if he has not heard the price
correctly, but a new benchmark is set that will now act as the basis of the negotiating to follow.
A concession typically follows from the sales person. Something like “I Have a Carrier Today for
Your Freight.” The freight broker agent will stress that his carrier is available now for the freight
rate.
Freight Broker Agent: "I have a guaranteed carrier whereas you have received a freight rate only
from my competition. I have a solution!"
Customer: "It is still more than the other freight rate than I have currently”.
Freight Broker Agent: "I can approach my carrier again for a better freight rate if you are ready to
move on this project right now!"
Strategy # 2 (Set Aside)

You are in a meeting where the purchasing manager is talking to the representative of an
automotive parts manufacturer.
Customer: "Look, we only do business with companies that give us sixty (60) days terms. If you
cannot, why are we wasting our time?"
The Freight Broker Agent is in danger that the negotiation will collapse before it has begun,
before a relationship is built, before all the facts are out in the open. An inexperienced negotiator
will either now give a concession or allow the negotiation to collapse.
Now, some negotiation tips work better than others but in the end the success lies in the skill used
to apply them. A skilled freight broker agent will respond by saying: "Let's put that aside for a
moment and first see if I can provide a solution for your transportation needs”.
Strategy # 3 (Splitting the Difference)

Get the other party to suggest that you split the difference. What tips to use?
Customer: "You want $5900.00 for this load while I only have a budget of $5400.00 It's a shame
that we cannot do business with only $500.00 separating us. Is there anything we can do?"
Freight Broker Agent: "I really would like to move the load. Why don't we split the difference?"
Customer: "How do you mean? Are you saying that we can agree on $5650.00 we can get this load
moved?
Freight Broker Agent: Absolutely! I will schedule the truck.
8
Shippers
Service Dependability
Providing a level of service dependability to your customer will speak volumes. If the customer finds
that, your rates are within market areas and the service provided is higher than expected, you will
have the ability to charge “Premium” freight rates. You will create no value to your shipper as a
“One Hit Wonder”. Your customers are looking for consistency on your part to be able to provide
quality carriers. Consistency is the key to higher compensation from your shipper.
No Cheap Freight
Freight Brokers and Motor Carriers are in the business of obtaining customers so that they might
arrange the transportation of their goods and services. They however are not in the business of
“Giving Away The Farm”. You will find that many freight brokers or sales agents will work an entire
day to make $100 dollars on a load, this is an absurd business practice. These freight brokers or sales
agents will be working at Wal-Mart within the next year.
I say this because as with any business you have to make a sustainable profit to be able to survive. If
you allow yourself or agents to operate on very thin profit margins, you will be finished before you
begin. To properly structure, your freight brokerage for success you will need to establish a
performance matrix for your freight brokerage and stick to it. Successful freight brokerages have
minimum commission percentages that on freight of any type. Do not try to reinvent the wheel in this
business; those who do are out of business quickly.
Freight Lanes
Knowing your freight lanes and the equipment values for

those lanes will give you more negotiating power with
your customer than you can ever imagine. They have
freight and they need to move it. If you stay on top of
carrier rates throughout the country, you hold the
advantage in any negotiation. Knowledge is power.
Shippers are always going to attempt to achieve the best

rate possible for their freight. However, they’re
occasionally not in tune with current pricing structures of motor carriers in certain freight lanes. You
as a freight broker should be aware of market rates prior to furnishing any freight quote. Always
provide a comprehensive freight rate based on market conditions to your customer.
In order for you to be able to provide a good freight rate for a certain lane, you will need to obtain
several quotes from multiple carriers who service the lane. Once you have acquired all of your lane
rates from carriers, you select a median average rate and simply add your profit margin to that rate
and provide it to your customer as the rate to transport the freight.
9
Shippers
The Follow Up
Emails
You have made your initial contact and sales

presentation to your customer now you need to
provide consistent follow up in order to get the
business. I would suggest communicating mostly
by email as this is less intrusive than a phone
conversation.
You can also communicate with a larger audience

quicker through this approach. Prior to starting
any email campaign you should always get there
permission of the prospect. You do not want to
get a reputation as a “Spammer”.
The Distribution List
What Is It?
A distribution list is feature of email client programs that allows a user to maintain a list of email
addresses and send messages to all of them at once. A distribution list is an email equivalent of a
postal mailing list. Your mailing list is one of your most valuable marketing resources. It holds
information on your customers and prospects that can be used to improve customer satisfaction and
increase sales.
Communication
Maintaining communication with your customers is as easy as 1-2-3. They are after all the ones who
give you referrals and potentially come back for future sales. According to USA Today, it costs 40
times as much to acquire a customer and is does to keep a current one.
Develop an email distribution list. Since these people already know you and/or your company, there
is a good chance they will probably use your service. What you have in front of you is a potential
goldmine of referrals, re-sales, up sales and cross sales.
Tips
 Market your services on a consistent basis, remember “Out of Sight is Out of Mind”
 Create a “Distribution Email List” by customer type. You can create specifically targeted
campaigns to the different customer types.
10
Shippers
What Type of Customer Do I Need?
Owner Operators and Freight Brokers rarely

stop for a minute to ask themselves a simple
question: what is their ideal client? When you
start a trucking business or freight brokerage,
you are looking for freight everywhere. You
enter scavenger mode and take whatever
loads you can. Obviously, you have to take this
approach because you need the money.
However, taking any shipper or client is not a

long-term strategy. And it’s definitely not how to make a successful trucking company or freight
brokerage. Instead, you need to be strategic and selective about whom you work with.
Define your perfect client ahead of time. This idea helps you know what to look for when you start
your sales efforts. The following list helps you start defining your perfect client:
 Large Shipper or Logistics Company

 Timely Above Average Pay Rates
 Offers Quick Pay
 Needs your services regularly
 Ships to convenient locations
 Values service and is not focused on getting the cheapest rate all the time Etc.
Obviously, finding a client that meets all your criteria is nearly impossible. But finding a few clients
who meet most of your criteria is certainly doable, if you are willing to put in the work.
Finding Regular Freight Customers
One company I know built his business by securing contracts with local supermarkets and taking
loads for them. He was earning about $20,000 per truck per month. Not bad, considering that most
industry “experts” say you should expect about $10,000 per truck per month.
How did he do it? He started contacting potential shippers directly. He looked for companies he
wanted to work with and called or emailed the shipping department to get more information about
new opportunities. This undertaking was hard work. He called lots of people before finding these
clients – but it paid off.
You have to contact shippers directly. We suggest you call or email them. This method is cheap and
works well enough. Don’t spend a lot on advertising unless you are certain it will work. Most
magazine ads are ignored unless they are really well done and well targeted.
11
Shippers
Industry Associations
One good source of leads is industry groups. I am not talking about trucking industry groups. Rather, I
am talking about industry groups that your prospective clients belong to. These groups are easy to
find on the Internet. Some even publish their membership lists on their websites. If the list is not on
their website, I am sure you can get a copy by joining the group.
Here is one simple example, a list from the National Grocers Association. Do you think their members
move freight? Obviously, they do. And there are hundreds of other similar associations.
The US Government is a Shipper
Keep in mind that one of the largest shippers in the country is

the US government. Many of those jobs are outsourced to
owner-operators and small fleets like yours. One example is
the US Postal Service. They move freight every day via
independent contractors. Here is information on how to pre-
qualify for highway transportation to move U.S. mail.
 You can also look for other US government

opportunities by visiting FedBizOps
In order for your to bid on loads as a carrier or freight broker.

The paperwork is lengthy, once you have all of this then you
will need to register for the TMSS (Transportation
Management Service System) now this is all US government loads and does not include DOD which
is the department of defense www.sddc.army.mil , to be eligible for FEMA loads you will need to
complete all the required paperwork and tasks. FEMA freight in my opinion is where the largest
amount of profit is.
GSA or TMSS loads are not placed out for bid, contracts go about two months before fiscal year end
for rates and quotes to be entered. DOD freight which is issued from the SDDC are bid accordingly,
The SDDC will consider carrier safety records and broker reputation. This freight is not always about
price.
Keep Your Current Clients
One thing to keep in mind is that finding new clients is hard. Keeping them for the “long haul” is even
harder. As a result, make every effort to keep your clients happy. Go the extra mile when you have to.
Remember how hard it was to find them? That’s why you should treat them like gold. I’d like to finish
this article with some great advice on how to keep your contracts.
12
Shippers
How Freight Rates Are Determined
The cost which a shipper (the consumer or business providing goods for shipment) or consignee (the
person or company to whom commodities are shipped) is charged for the transportation of goods is
determined by a number of factors.
The main factors in determining the freight rate are: mode of transportation, weight, size, distance,
points of pickup and delivery, and the actual goods being shipped. All of these factors play their own
independent role in determining the price or rate at which the freight will be transported but they are
also all interconnected. When determining which mode of transportation will be used to deliver the
freight to its destination there are many things which need to be taken into consideration which will
all have an effect on the freight rate.
Federal, State, and Local authorities all have their own laws and regulations with regards to the size,
weight, and type of freight which can be transported on their roads. In general, the more freight you
transport, the cheaper it is. This is an important factor in the rate charged to people or companies
shipping freight.
In the commercial trucking industry, many shippers tender loads to freight brokers whose job it is to
find qualified carriers to move the freight at an acceptable price for all parties. Brokers have access to
a suite of technological tools to help determine the most cost-effective way to move cargo, including
access to load boards. The best load boards provide rate analysis tools based on actual transactions
on every lane in North America, since their databases hold a wealth of pricing information. For
example, DAT offers Rate View for carriers, brokers and shippers, providing access to shippers’
contract rates and spot market (broker buy) rates. This allows brokers to analyze market demand and
capacity to assure competitive pricing.
13
Shippers
The Supply Chain Network
Freight Lanes
Freight lanes represent a directed route that can be used to transport products from the source to
the destination. Freight lanes are used by manufacturers and distributors for shipments of consistent
freight to their customers.
Example:
NUCOR Steel Manufacturing requires “Outbound” transportation for Steel Products from their
Huger, South Carolina facility to the below locations. The diagram below represents the truckload
capacity required. These freight lanes are “BID” on an annual basis.
•Birmingham, •Chicago,
Alabama Illinois
4X 2X
Weekly Weekly
5X 1X
Weekly Weekly
•Dallas, Texas •Tampa,
Florida
Service Solutions
Manufacturers and Distributors will require reliable and dependable carriers to service freight lanes
to avoid in disruption in service. Consistent freight lanes are the “Bread & Butter” of every Freight
Broker and Trucking company. Gaining access to this type of freight will require you to have an
excellent relationship with your customer. These shippers typically will allow only “Asset Based”
carriers to bid on these projects so as to avoid a service failure.
14
Shippers
Freight Lane Bidding
When you are presenting your freight bids to a shipper for a consistent freight lanes you will be
required to complete your due diligence if you
expect to get the freight. Freight bidding can
be a time-consuming endeavor that is
necessary to ensure that you are receiving
competitive rates and quality service
When preparing your bids for the freight start

contacting motor carriers who have the
correct equipment who service the freight
lane. You can do this a few ways. I would
suggest utilizing the services of whatever load
board you have a subscription too. Load boards such as Internet Truckstop and DAT provide
historical freight data which can be essential in getting the best rates. This historical freight rate data
can give you an estimate of charges and also a good starting freight rate to approach the motor
carrier with.
Tools
 Internet Truckstop - Request for Proposal (RFP) Suite - This tool will allow you to submit your
freight lane to a core group of carriers to obtain more accurate cost estimates by basing
proposals on actual carrier costs.
 DAT Rate View - DAT RateView™ is an innovative online tool that puts real-time spot market
and current contract freight rates at your fingertips. Compare your rates with actual
shippers’ contract rates and spot market (true broker-buy) rates. Get today's rates, last
week's, and 13-month lane rate histories. Discover new opportunities in seasonal trends for
vans, flatbeds and reefers.
Preparing Freight Lane Bids
 Contact motor carriers through your database and also place your RFP on load boards to
encourage the carrier participation process.
 Look for opportunities to decrease costs through a change of transportation mode (e.g., from
truckload to rail).
 Leverage volume through a relatively small group of core carriers to yield lower costs and
more capacity.
 Make sure you include a FSC (Fuel Surcharge) and any “Accessorial” charges in all bids.
 Once freight rate has been obtained simply apply your profit percentage to the freight rate
and adjust pricing.
 Submit your freight quotes to the shipper and follow up!
15
Shippers
Market (Spot) Freight Rates
When shippers have freight that is not transported under contract

for a load that requires transport either immediately or in the
imminent future this known or referred to a “Spot or Market Rate”
load. This freight is not locked into contract pricing and the freight
rate will need to be negotiated. You will generally be able to obtain a
lower than normal freight rate for freight lanes and equipment
types.
How to Obtain the Freight Rate
The best method on rating (pricing) a Spot Rate load is to post the load on a load board. Trucking
companies will call to inquire about that load. When they do, ask them how much they would need to
haul it. Do this process with a couple of companies, and you will soon see what freight is moving for in
that lane?
You establish the “Median Freight Rate” by calculating the total numbers of total freight rates
received and then divide the number of carriers into the total. The sum of that total will be the freight
rate you can transport the load.
Indicators That Will Determine Freight Rate
 Does The Shipper Have A Pre-Determined Rate In Mind - Some of your shippers will have
a predetermined amount they have budgeted for the line haul. He offers you the freight for a
flat rate price and you can either find a truck to transport it or not. I will attempt to
accommodate the shipper, however if I cannot make any money on the load, I just do not
accept the freight or I make a counter offer to the shipper.
 Where Is The Load Picking Up And Delivering - When considering a freight rate you will
look at the “Origin and Destination” of the freight. In certain areas of the country, it may be
harder to obtain a carrier to transport the freight. Destination always plays a pivotal role in
the rate you will quote the customer and receive from the carrier.
 Date Of Availability - The rate you pay the motor carrier also is determined by the date of
availability to load. For instance, if your load is available at the beginning of the week you will
most likely get it transported for a cheaper rate because carriers are looking to get loaded
right away. Generally, in the later parts of the week the motor carrier will have the edge on
the rate because he knows you have to get the load moved.
 Equipment Type - There are many different types of equipment available in the
transportation industry. These different equipment types will demand rates according to the
market worth. This is due to the “Power of Scarcity”. Another factor you need to consider is
“Specialized Equipment”. These specialized trailers will transport permitted over
dimensional loads. These specialized trailers will charge you more to transport the freight
due to DOT Permits, Trailer Size, Load Weight, Pilot Cars or associated cost.
16
Shippers
Credit Extensions
One of the policies you will likely have to set for your freight brokerage is how your customers can
pay for your service. The most common options are cash, check, credit card, or debit card. Another
choice is to extend credit to your customers. The decision to extend credit is an important one, given
the costs and risks associated with it, so take the time to consider the pro and cons first.
The Pros
 Higher Sales - Offering credit may increase your freight brokerage sales by making it easier
for some customers to do business with you.
 Industry Standard - If you want to be competitive in this industry, you will have to do so.
The Cons
 Greater Financial Risk - Extending credit increases your freight brokerages financial risk,
since some customers may not pay their bills on time or at all.
 Cash Flow - Offering credit ties up cash that otherwise could be invested in the brokerage.
 Higher Costs - There are a number of costs associated with extending credit. First, you
should do a credit check on each customer before extending credit, which you will have to pay
for. Second, there is a cost to having cash tied up when you extend credit, since you will have
to obtain that cash elsewhere or, if you don't or can't, it will not be available to pay your
business's costs or to invest in growing your business. Third, if a customer does not pay his
bill on time, you will incur costs related to collections efforts. Fourth, extending credit
involves greater record keeping and, therefore, higher administrative expense.
What Makes A Good Credit Policy?
Credit terms are simply the time limits you set for your customers' promise to pay for their services
received. But for many small freight brokers, establishing credit terms can be cumbersome. When
shippers use your services, you expect them to pay within a specific period of time.
As a result of this promise, you agree to give up an immediate cash inflow until a later date. The credit
terms of most freight brokers is 30 days. However, some freight brokers may have credit terms as
short as 7 or 10 days.
Not every shipper is going to credit worthy. Freight brokers will use a variety of means to obtain the
credit score of the customer to evaluate whether to extend credit or not. Often when a shipper fails
to meet the prescribed criteria the freight broker will require pre-payment in the form of Cash,
Credit Card, Wire Transfer or C.O.D.
Tools
 FMCSA Rules For Payment Of Transportation Charges

 What Actions May I Take To Collect Unpaid Freight Bills
17
Shippers
Reading a Business Credit Report
Each business credit bureau has their own way to represent the credit information they collect.
While the layout might vary, or the names for different sections change, the principles outlined below
are the same.
Step 1) Read the Company Profile
First thing first! Check the company profile to get an overview of the company you are looking at.
The Company Profile Will Contain Information Like:
 Company name
 Address
 Telephone and fax numbers
 Information on company principals
Don't spend too much time here. The most important thing is to be sure that the report you pulled is
on the correct company. Match the company name and address to what you have on file. This is
especially important if the company you are considering extending credit to has a generic name (like
Smith Enterprises).
18
Shippers
Translate the Business Credit Scores & Credit Alerts
Towards the top of each business credit report, you will find an overview of how the company pays
their bills. Each business credit bureau has their own way to represent this overview but it will usually
contain three important criteria: a credit rating, a business credit score, and a list of credit alerts.
Credit Rating
We're back to dreaded 74K-38. So what the heck does it mean?
 74K = $74,000 - This is Company XYZ's average monthly balance over the past 6 months.
 38 = 38 days to pay - Over the past 6 months, they pay on average, in 38 days.
To put this all together, a rating of 74K-38 would mean over the past 6 months, Company XYZ has
had an average monthly outstanding balance of $74,000 and pays their bills in roughly 38 days.
Business Credit Score
Business credit scores give you an idea of a company's risk potential. They range from 0-100; the
higher the better. A sophisticated mathematical model calculates the scores based off multiple
factors in each of these four areas:
 Payment history
 Current level of indebtedness
 Current level of delinquencies
 Length of credit history
Business Credit Scores Are Grouped Into Three Categories Of Risk:
1. Low Risk (87 or Above)

2. Medium Risk (70 - 87)
3. High Risk (70 or Below)
19
Shippers
Credit Alerts
A credit alert is an adverse piece of information. We show our credit alerts in bright red, hoping to
literally alert credit professionals of their existence. Examples of credit alerts are:
 Collection Accounts
 Judgment Filed
 Fraud Account
 Credit Hold
 Returned Check
 Phone Disconnected
Alerts are never something you want to see when considering extending credit to a company. If you
encounter a company with a credit alert on their report, proceed with caution. Credit alerts, ratings
and scores are useful in making a credit decision, but the majority of your time should be dedicated to
the next two steps.
Understand Month by Month Payment History
How is a company currently paying their bills? Are they slowing down on payments?
This is the start of the meat of a business credit report. Here you will see actual payment history that
has been reported by businesses who are working with Company XYZ. This data is usually shown in
the standard accounts receivable aging buckets (as seen below).
There Are A Few Basic Things To Remember When Analyzing This Section:
1. The more money that is in the 1-30 day aging bucket the better.
2. The past 12 months of payment history are the most important. I am much more interested in
how a company pays their bills now vs how they were paying 2-3 years ago.
3. You should be able to see how many companies have reported to your business credit
bureau each month. If you do not have this transparency, there is no way to know whether
the information you're viewing was reported 3 months ago or 3 years ago.
20
Shippers
Determine How Your Industry is Paid vs How All Industries are Paid
This is an extremely important section. Here you will see how Company XYZ pays different
industries.
When Looking At Industry Specific Payment History, There Are Two Key Considerations:
1. How is your industry being paid? This is the best indication of how you will be paid.
2. How are all other industries being paid? An often overlooked area, but vital in determining
credit worthiness.
Use the same logic as you did with numbers 1-3 in Step 3 above - majority of the bills in the 1-30 day
aging bucket, information from the past 12 months, transparent data.
Check the Number of Credit Inquiries
Similar to your personal credit report, business credit bureaus track the number of times a company's
credit report has been pulled.
A business credit report having multiple inquiries is not always cause for concern. In many instances,
it can even be a positive sign. Here are a few examples:
 Positive: a business is growing and is seeking new creditors.

 Negative: a business has reached their credit limits and is seeking new creditors.
To determine whether inquiries are good or bad, review the company's days to pay. If these have
been steadily increasing over the past few months, it could mean that they are having trouble paying
their bills.
21
Shippers
Sample Credit Report (Bad)
22
Shippers
Sample Credit Report (Good)
23
Shippers
Sample Credit Report (Good)
24
Shippers
Dunn & Bradstreet Paydex Scores
Freight brokers use Paydex scores which are produced by Dun & Bradstreet to decide whether to
extend credit their customers. The exact definition from Dunn & Bradstreet or D&B is: The D&B
PAYDEX® Score is D&B's unique dollar-weighted numerical indicator of how a firm paid its bills over
the past year, based on trade experiences reported to D&B by various vendors. The D&B PAYDEX
Score ranges from 1 to 100, with higher scores indicating better payment performance.
Understanding Payment Patterns
100 - Anticipate – Payment detail may state: The payment details section may include the
payments are received prior to date of invoice following comments on your payment patterns:
(Anticipated)
ANTIC - payments are received prior to date of
90 - Discount - Payment detail may state: invoice (Anticipated).
payments are received within trade discount
DISC - payments are received within trade
period (Discount)
discount period (Discount).
80 - Prompt - Payment detail may state:
PPT - payments are received within terms
payments are received within terms granted
granted (Prompt).
(Prompt)
SLOW - payments are beyond vendor's terms.
70 - 15 Days Beyond Terms
For example, "Slow 30" means payments are 30
60 - 22 Days Beyond Terms days past due.
50 - 30 Days Beyond Terms PPT-SLOW - some invoices are paid within
terms, others are paid beyond terms.
(#) -indicates that no manner of payment was
provided; the number merely reflects the line
20 - 120 Days Beyond where it appears in the listing. For example,
UN - Unavailable (004) means it is the fourth experience listed.
Transportation Credit Agencies
 Compunet - (CoreLogic) - CoreLogic’s Transportation Services team for the most powerful
credit information on your shippers. As a one-stop-shop, we combine our robust CompuNet™
Credit Report with D&B Paydex® scoring to help you make better, informed business
decisions regarding all of your business partners. Sample Credit Report
 Ansonia - Ansonia Credit Data is the leading alternative to traditional providers of
overpriced and outdated business credit reports.
 Trans AM Financial Service - The best factoring company for Freight Brokers.
25
Shippers
Processing Freight Bills
Invoicing Customers
Freight bill processing is one of the most time-consuming,
expensive and confusing parts of the payables process. I
suggest you establish an organized process in which to do
this quickly and efficiently. To succeed in this business
you will need to get your loads invoiced efficiently so that
you can get paid quicker.
Payment Terms & Conditions
The customary terms for the industry for payment are
(30 Days). This means that you will invoice your customer
with all the proper documents for payment once received
from the motor carrier. Once the invoice has been
submitted for payment the customer has (30 Days) in which to pay the freight. These are as I said
terms that are commonplace within the industry and not set into stone.
Paperwork & Receipts
You need to make sure that include all of the following items with your invoice so that you avoid any
payment issues with your customer. All invoices should include the following:
 Original Bill Of Lading or (Scanned Copy)
 Rate Confirmation
 CAT Scale Tickets (If Required)
 Permits (If Required)
 Pilot Car Receipts (If Required)
 Unloading “Lumper” Receipts (If Required)
Details
 Charges - You will need to prepare your invoice with a detailed list of charges for your
customer to review.
 Flat Rates - If you’re getting paid by the customer for a “Flat Rate” load it is pretty easy, i.e.
your agreed rate for transport was $1500, you would invoice the shipper this amount.
 Hundred Weight / Quantity / Bulk Freight - If you’re using one of these payment matrix to
invoice your customer, you will need to include the “Quantity” transported and multiply it by
the price per unit that has been agreed upon by the parties.
 Miscellaneous Items - These items should be included with your invoice but as a separate
charge from the freight transport. These items could include; Unloading Fees, Detention and
Fuel Surcharges, Permits, or Scale Tickets.
26
Shippers
How You Will Charge Your Shipper
Flat Rate Loads
The simplest type of freight in which to run as a freight broker is a “Flat Rate” load. The shipper will
assign the load to you at an agreed rate between both parties.
Example Load
 Commodity: Steel Product

 Equipment Type: Flatbed / Tarps
 Load Details: Las Vegas, Nevada – Cincinnati, Ohio
 Rate: $4387.50
Loads by Weight - Hundred Weight Loads (CWT)
Some shippers will assign freight that is paid according to the (CWT) or hundredweight. The carrier
will need to provide you with a CAT scale ticket of his empty weight and loaded weight. You then
subtract that weight (the tare weight) from the weight of the loaded vehicle to get the weight of your
freight.
You will submit a copy of your invoice to the shipper with the CAT scale ticket and you will be paid on
the tare weight. The money you will make will depend on how much weight the truck can scale and
transport.
Example Load
 Commodities: Onions, Potatoes, Apples, Watermelons and other produce.

 Equipment Types: Reefers, Insulated Vented Vans, Flatbeds w/ Sidekits and Tarps
 Load Details:
 Rate: $10.00 (CWT)
How To Figure Rate

When a shipper is paying by the hundredweight, he is compensating you for 100 pounds of payload
that your truck can carrier. This does not include pallets, bins, boxes or other materials of which the
cargo is stored in. Here is a way below to figure out how much you will charge the shipper and pay the
carrier.
 Mileage (1825) – Weight (44,200) + Shipper Rate $10.00 CWT
 Rate = $10.00 CWT / Broker Rate $4420.00 – Carrier Rate = $9.00 CWT / $3978.00
 Carrier Mileage Rate = $2.17 per mile.
 Brokerage Profit = $442.00
27
Shippers
Finding Freight
Finding freight is often easier than you think there are millions of potential candidates available if you
look in the right places. In order to be successful you will need to look for directories which contain
multiple companies, this will provide you with a list of potential shippers that are generally of the
same NICHE. I have provided some examples and links below.
Industrial Directories
 MacRAE’s Blue Book - http://www.macraesbluebook.com

 Thomas Net - http://www.thomasnet.com
 Industrial Quick Search - http://www.industrialquicksearch.com
 Hoovers - http://www.hoovers.com
 Industry Net - http://www.industrynet.com
Food & Grocery
 The Food World - http://www.thefoodworld.com

 National Poultry & Food Distributors - http://www.npfda.org
 Careers In Food - http://www.careersinfood.com
 USDA MPI Directory - Click Website Link
 US Poultry Association - http://www.uspoultry.org
Produce, Fruits & Vegetables
 The Packer - http://www.thepacker.com

 Produce Universe - http://www.produceuniverse.com
 Produce Links - http://www.producelinks.com
 Texas Produce Association - http://www.texasproduceassociation.com
Heavy Machinery
 MASCUS - http://www.mascus.com
 Tractor House - http://www.tractorhouse.com
 Equipment Trader - http://www.equipmenttraderonline.com
 Machinery Trader - http://www.machinerytrader.com
28

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Freigth Bible

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2016

Contents © Copyright 2002 - 2016

Motor Carrier Safety Ratings

A safety rating is determined by a compliance review, an on-site examination of motor carrier

Motor Carrier Insurance Requirements

 Bodily Injury & Public Damage - $750,000 - $5,000,000, depending on commodities

Freight Broker Insurance Requirements

Minimum Carrier Requirements

 Bodily Injury & Public Damage Insurance Coverage of $1,000,000

SMS and BASICS

 Unsafe Driving - Operation of

Freight Broker Negligence

In Schramm v. Foster, a Maryland court found that C.H. Robinson

Due Diligence and Carrier Safety Data

Monitor the carrier's safety rating through the SafeStat Website.

 Do Not Use - If the carrier has an "Unsatisfactory" safety rating,

The General Guidelines

If There Is No Carrier Safety Rating:

Carb Compliance Rules

California Reefer Regulations

Freight Brokers and other Freight Forwarders are required

 Carriers That Are 100% Compliant: Website

 Check CARB’s Public Database - Website

What Should Be Included

Internet Load Boards

Load Boards are a necessary resource for Freight Brokers.

 DAT Transcore 360 - DAT is one of the premier

This Race Is On!

Marketing Resources & Tools

For instance if you have a load going

This refers to a company pulling freight for

When a freight broker starts negotiating

How Freight Brokers Determine Freight Rates

A shipper has a load of produce leaving Salinas,

The Load Negotiation

Do They Go To The Carrier? (Yes & No)

I usually just pocket the fuel surcharge on the

An additional charge imposed by motor

DOE Energy Information - Website

Contents © Copyright 2002 - 2016

This is as opposed to a less-than

Because truckload carriers ship a wide

Equipment Type: Dry Van

Trucking Company Agent Opportunities

Trucking Company: Paschall Truck Lines - http://www.truckloadagents.com

Carriers will offer shippers and brokers

How Does The LTL Model Work?

How To Determine Freight Class

 Round fractions to the nearest full cubic foot number.

Carrier Name Phone Number Website

Information Needed For Freight Quotes

 Length - 65’ (3’ Overhang Is Acceptable In Some States)

Equipment Type - Flatbed

Equipment Type: Flatbed

Trucking Company Agent Opportunities

Trucking Company: Fikes Truck Lines - http://www.fikes.com

Equipment Type - Step Deck

Equipment Type: Step Deck

Trucking Company Agent Opportunities

Trucking Company: Bennett - http://www.bennettig.com

Oversize Load Examples

Legal Load Dimensions

 Load Width - 8'6" (102")