Should You Start A Freight Broker Business in 2024?

The short answer is YES. But let me explain why I believing you should start a freight broker business in 2024.

In this article, I am going to share with you 3 important criteria you should consider before starting a freight brokerage.

We will cover some of the most common questions asked including: 

Are Freight Brokers In High Demand?

Yes! According to Market Growth Reports, the global freight brokerage market size is expected to grow from $51.7 billion in 2023 to $85.9 billion by 2032 (2). 

The fact is, almost 73% of the United States freight was moved by trucks in 2022 (1). That is almost 2/3 of all U.S. freight.

The freight industry is driven by supply and demand and with the baby boomers retiring from the trucking industry at an alarming rate, there is a growing shortage of experienced truck drivers. 

Some people see this shift in the market as a negative, but I consider this a positive for both freight brokers and freight agents. Especially those looking to just get started in 2024.

Why?

Because with less truck drivers on the road, it makes a shipper’s job harder and a freight broker’s job more important. That means it is more difficult and time consuming for shippers to manage their constant flow of inbound and outbound freight. 

As the shortage of truck drivers brings more challenges for shippers, it also brings more demand and opportunities for third-party logistics services like freight brokers.

Many of the drivers/carriers they have been using for years are no longer an option. Never forget, one the biggest value proposition that brokers offer to shippers, is providing a service that saves them valuable time not just cheap rates.

This means growing demand in the logistics industry for freight brokerage business.  

Ask yourself these simple questions. If you were a shipper, would you rather make 10, 20, 30 or more phone calls to move one shipment or would you rather just work with a reliable broker, that will do all that for you? 

Smart shippers love outsourcing to freight to brokers because it saves them time. Not to mention the fact it is way less expensive than hiring experienced logistics professionals internally as full time employees, to do all the work.

Freight brokers simplify the shipping process and are true experts in the freight game. Leveraging their industry expertise and network of carriers, allows shippers to focus on what they do best.

Can Freight Brokers Work From Home? 

Absolutely! Many freight brokers and freight agents have started from home.

All you need is a computer, a phone, the internet and a little bit of training on how to become a freight broker or freight agent and you’re off to the races.

It is definitely a good idea to get some kind of freight broker training from a licensed freight broker (either on-line or in-person freight broker school). 

Now, not all small businesses can be run from home and not all people should work from home. But it’s not unusual for freight brokers and freight agents to start at the kitchen table, a spare bedroom or even an office in the basement. 

freight broker work from home

One of the greatest parts of becoming a broker is you do not need a retail store, commercial office space or even employees as a freight broker business startup. You can start as a one-person operation and expand your team and operations as you grow.

One of the greatest advantages of being a freight broker or a freight agent is the flexibility you have in where and when you work. 

There are tons of advantages to working from home, so I listed a few below:

Advantages to Working From Home

  • No commute to or from work – Say goodbye to rush hour traffic and save 1-2 hours a day without having to commute to and from work.
  • Save money on gas – Another benefit of working from home is saving money on gas, car maintenance, and other related expenses.
  • Tax write off – Home-based businesses often qualify for tax deductions for business-related home expenses. 
  • Spend more time with family – Without having to drive to and from the office everyday, you can spend those extra hours with the people who matter the most.
  • Avoid office politics – Unless your pet is whining about you not giving them enough treats, working from home is free of office gossip or politics. 
  • Less distractions – Once your successful freight broker office set up is complete, you’ll be ready to focus on bringing on new clients and cash flow.  
  • Healthier lifestyle – With more flexibility over your schedule, you can spend more time focused on your health, passion projects, and other interests. 

How Profitable Is Freight Brokerage? 

Did you know that the US third-party logistics (3PL) market is estimated to pass $238 billion USD in 2024 and is expected to reach over $281 billion USD by 2029 (3).

The top 50 freight brokers in the US range from $446 million to as much as $15.2 billion per year in sales (4). So how much of that market do you want?

I remember starting my brokerage with no customers, no carriers and no experience and with some hard work we were able to generate over $1.2 million in sales by the end of 2004. By 2016, when I sold my freight brokerage, the business was doing about $80 million a year in sales.

So regardless if you’re a truck driver, the spouse of a truck driver or just someone interested in starting a freight broker business…now is an amazing time to get started.

The key to success in any new venture is to find and get trained by someone that has already done what you’re looking to achieve. That is why I launched Freight Broker Boot Camp back in 2009 and have helped train over 10,000 students learn how to become a freight broker online.

How To Get Started As A Freight Broker?

If you’ve gone through the 3 questions above and still want to become a freight broker, I’ve got good news!

I will go in depth with a step-by-step guide to starting a freight brokerage company, including how to become a licensed freight broker by the Federal Motor Carrier Safety Administration. 

My article on how to become a freight broker in 7 steps was designed to walk you through step by step.

  1. Get trained by reputable source
  2. Get your freight broker authority (freight broker license)
  3. Find your freight broker niche
  4. Set up your home office
  5. Leverage freight broker software 
  6. Partner with a freight broker factoring company 
  7. Start selling and marketing to shippers

Want more freight broker resources?

Did this article help you out?  If so, I would greatly appreciate it if you would comment below, SHARE on Facebook, Twitter, or LinkedIn and be sure ask any questions in the comments below!

P.S. Did you know that I offer a 60 day 100% money back guarantee to students that enroll in my online Freight Broker and Freight Agent training program?  Give it a try and if you’re not happy for any reason…I will personally refund your money!!!!

Sources:

(1) https://www.trucking.org/economics-and-industry-data

(2) https://www.linkedin.com/pulse/freight-brokerage-market-2023-size-share-trends/

(3) https://www.mordorintelligence.com/industry-reports/us-3pl-market

(4) https://www.ttnews.com/logistics/freightbrokerage/2023

DENNIS BROWN
Owner, CEO

Dennis Brown the freight broker, is the owner of FreightBrokerBootCamp.com and former CEO of Logistic Dynamics, Inc. (LDi) one of North Americas fastest growing logistics providers. Dennis has over 25 years of hands on experience as an entrepreneur and is widely regarded as an expert in logistics, freight brokerage, business growth strategies and B2B sales and marketing. Dennis became a freight broker in 2003, as a one man operations with NO industry experience . He went on to do over $200 million as a freight broker, eventually selling the freight brokerage to spend more time with his family. Dennis Brown has trained over 10,000 students, in 16 different countries, how to become a freight broker or freight agent. Many of his students have went on to build highly successful and highly profitable freight broker businesses.

2 Comments
  1. Mariusz Niebrzydowski

    Hello Dennis,
    I just watched your video with Vespa from Venus Logistics. Very resonating and inspiring to my own story of HaulHub, a 3pl I started a few months ago. Would like to find out about freight sales accelerator. I know Vespa mentioned that but cannot locate that. Thank you

    April 10, 2024 at 7:35 am
  2. DENNIS BROWN

    Great! Yes the interview with Vishakha was amazing. The freight broker sales accelerator is sold out currently but there is a waitlist to be notified as soon as spots open up. http://www.freightbrokerbootcamp.com/waitlist

    April 11, 2024 at 2:20 pm

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