Job hunters online looking for a new career to break into frequently see a lot of content about being a freight agent, but the number one question most have is, what exactly is an independent freight agent? That, of course, brings up different analogies like salesperson, phone center caller, commission rep, or logistics coordinator. However, a freight agent involves a lot more than any of those categories.
Every agent needs a couple of things that are essential to the career’s success. First, the person needs a customer base to work with; these don’t magically appear. Experience is also a second necessity. Without knowing whom to call and why, there’s no way to start. Finally, an agent cannot close a negotiation on their own; they need a licensed freight broker. As a result, agents work for a broker who operates with a parent business. In many respects, the setup is similar to working as a real estate agent.
Function
The goal of the freight agent is to be a connecting element between companies that need to ship and companies that do the shipping. While it’s true that a business could just contact a shipper directly, that doesn’t mean everything lines up right with schedules, capacity, location destinations serviced, and more. So, a freight agent helps clients connect with a library of shippers, switching from one to the other depending on what the client needs and the shipper that best fits the demand at the time. The freight broker oversees the activity and makes sure everything lines up correctly from an agreement perspective. For the most part, freight agents generally work with truck shippers and road deliveries, but there are segments that deal with air and train as well.
Administration
As noted above, a freight broker provides the licensing authority for the middle third party function in negotiation as well as taking on financial liability if there is a mistake and loss. It’s a hefty role and why there has to be a license in place. The broker manages both the agent as well as the legalities of the shipping order between the client and shipper. He or she is also responsible for making sure what is scheduled is done per regulation, which can involve multiple states and the federal government. However, it is the freight agent that is handling much of the communication, day-to-day work, and customer support. Eventually, agents with enough skill, experience, and contacts can move up to being a broker for a company.
Compensation
Independent freight agent benefits vary as well as how agents are paid. It can range from commission-based pay to hourly work. Obviously, commission-pay is connected to how many orders an agent closes to commitment and fulfillment. Annual salaries are possible but are typically with much bigger companies that hire experienced staff. Nationwide, the average pay comes out to $58,000 gross annually, but this varies considerably on time, experience, location, and workload.
How to Get Started
The freight agent role can be the entry-level point for someone who wants to work in logistics. It does require a high commitment to organization, skill, and being a self-starter work-wise. The best way to realize success early is to connect with a reputable freight broker company and develop lots of relationships with clients early as well as to produce business for all involved. It can be competitive, especially in regions with lots of freight agents working in the same markets. Those who succeed have discipline and dedication to the work, night and day as needed.
Some company programs offer training, even if a candidate has no experience at all. More than likely, most of these positions are commission-based. There is also an education degree path for the role too. Salary positions tend to be filled by those who already have a solid experience portfolio and move into more secure roles with bigger companies. It’s also important to note as an independent agent you’re working as a contractor, which means most compensation is reported as a MISC 1099. You will be responsible for your own income withholding as well as a result. All of that said, if it’s the right path, many candidates really see their careers take off in a people-oriented business career path.