In this short post I will be comparing a freight broker authority vs a carrier authority.
The goal is to answer the question of, “should a carrier get their freight broker authority?”
The short answer is YES!
Freight Broker Authority vs Carrier Authority
When comparing freight broker authority vs carrier authority the income opportunity is much higher as a freight broker. But when you combine the two it can be a real win win.
In my opinion, it makes complete sense for these small trucking companies to get their freight broker authority. Let’s say you were to add a freight broker division and only broker full 1 truckload ($1,500) per week. Assuming a 15% profit margins you could earn an extra $11,700 in profits a year.
All without having to buy another truck!
As a motor carrier it makes total sense to offer both asset and non asset based services.
- It allow carriers to service their customer more effectively due to increase capacity that brokerage can bring.
- It allows you to optimize your equipment utilization because there are times when it makes more sense to broker a load then to put it on your own equipment.
- It allows you to save your customer money by brokering loads ta rates you would not accept for your own trucks.
- It adds another profit center for your business without having to purchase and or go into debt for another truck or trailer.
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