Owning your own independent freight brokerage company can be an exciting venture, but it is important to understand the financial implications. Here are some key considerations:
Startup Costs: While there are no specific education requirements to become a freight broker, starting your own brokerage does come with costs. Depending on factors like business structure and operational investments, these can range from several thousand dollars to over $10,000. Expenses include licensing fees, office space, technology, insurance/surety bond, and marketing/sales.
Profit Margins: As a licensed freight broker, you’ll earn 10% to 30% profit margins on each shipment. The exact margin depends on factors such as transportation mode, complexity, and distance. Owning your brokerage allows you to maximize profits compared to working as a salaried employee.
Cash Flow Management: Brokering involves managing the gap between money going out (paying carriers) and money coming in (from shippers). You must plan for consistent cash flow to cover operational expenses and ensure smooth operations.
Market Volatility: The freight industry experiences fluctuations due to market conditions, seasonality, and economic shifts. Brokers must adapt to changing demand, pricing, and capacity.
Becoming a Freight Agent: A Viable Alternative
If running your own freight brokerage business seems daunting, consider becoming a freight agent for an established freight brokerage firm or a third-party logistics company with a freight agency program (like Logistics Plus). Here’s why:
Reduced Risk: As a freight agent, you’re not responsible for the entire business. Instead, you focus on sales, customer relationships, and finding loads. The parent brokerage firm handles administrative tasks, carrier payments, and compliance.
Access to Technology: Becoming a freight agent for a larger, more established third-party logistics company often provides you with access to better, more cutting-edge technology, such as a transportation management system (TMS) with robust functionality and API integrations.
Broader Range of Services: Partnering with a third-party logistics company that offers additional services, such as air and ocean freight forwarding, project logistics, warehousing, etc., expands the services you can sell to your customers and opens up additional earning potential.
Training and Support: Established brokerage firms provide their freight agents with training, mentorship, and ongoing support. You’ll benefit from their industry expertise and established carrier relationships.
Earning Potential: While freight agents earn commissions (typically a percentage of the parent broker’s profit), the stability and support can lead to consistent income. As you build your client base, your earnings can grow steadily. However, do your due diligence to ensure you find a growing, fun brokerage firm that is financially stable.
In summary, both options have pros and cons. Owning your own brokerage company offers independence but requires significant investment and risk management. Becoming a freight agent for an established North American freight brokerage firm or a global freight forwarder provides stability and support while allowing you to focus on sales. Remember, success in the freight industry depends on hard work, adaptability, and building strong relationships with shippers and carriers. Choose the path that aligns with your goals and risk tolerance.
Watch this short video on the benefits of becoming a freight agent for Logistics Plus.
Jim Berlin pictured left of Penny Pritzker at the Ukraine Recovery Conference.
G-7 Governments Name 18 Business Leaders, including Logistics Plus CEO Jim Berlin, to New Advisory Council for Ukraine
This new initiative is to support Ukraine’s economic stability and growth and pave the way for future reconstruction.
ERIE, PA (June 13, 2024) – Logistics Plus, Inc. (LP), a global leader in transportation, logistics, and unique supply chain solutions, is proud to report that on June 11 at the International Ukraine Recovery Forum, German Chancellor Olaf Scholz announced the launch of a new initiative to support Ukraine’s economic stability and growth and pave the way for future reconstruction, a Business Advisory Council of 18 business leaders from across the G-7 nations, Ukraine, and key donor states.
Logistics Plus Founder and CEO Jim Berlin is one of three business leaders from the United States appointed to this international Council, alongside fellow US representatives from Northrop Grumman and McDonald’s, under the capable leadership of Siemens CEO Dr. Christian Bruch.
Jim and Derek Berlin at the URC Conference in Berlin.
Jim was joined at the conference by Logistics Plus SVP of Global Government Solutions Derek Berlin. Penny Pritzker, Special Representative for Ukraine’s Economic Recovery, served as Head of Delegation.
Of the initiative, Berlin said, “The first meeting of the Business Advisory Council brought together a group of committed and proactive business leaders, and I am confident that working together, we can serve as the ‘tip of the shovel’ of international business engagement in Ukraine at this critical time and onward to rebuild the country.”
In his welcoming remarks at the Ukraine Recovery Conference, Chancellor Scholz said, “The recovery of Ukraine is and has to be a business case too, and (those businesses) will be front and center to engage right from the start. Together with the United States, (this is) why we have taken the initiative for the Business Advisory Council. (It) will be the voice of the business community.”
Logistics Plus has over 70 employees across three locations based in Ukraine. Since the 2022 invasion, Logistics Plus has donated and raised over $1 million worth of total relief for Ukraine. Last year, working with an American oil and gas supplier, Logistics Plus managed the complex delivery of 22 thousand tons of gas pipes to Ukraine to help with infrastructure rebuilding efforts (as shown in the photos below).
Audio comments from Jim Berlin:
About Logistics Plus, Inc.
Logistics Plus, Inc. (LP) is a 21st-century logistics company and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions. LP works in the background to help businesses manage their supply chains in a constantly changing world. Founded in 1996, today LP has annual global sales of over $600M with more than 1,200 employees located in 50+ countries worldwide. LP is recognized as one of the fastest-growing privately-owned logistics companies, a top 3PL provider, a top 100 logistics company, a top freight brokerage and warehousing provider, and a great place to work. With a Passion For Excellence™, its employees put the PLUS in LOGISTICS by doing the big things properly, plus the countless little things that together ensure complete customer satisfaction and success.
Hotel and hospitality logistics refer to the specialized supply chain management services tailored for the hospitality industry. These services ensure that hotels, resorts, and other hospitality establishments have a seamless flow of the furniture, fixtures, and equipment (FF&E) needed to meet guest expectations. Here are some key aspects of hotel and hospitality logistics:
Supply Chain Management: Logistics play a crucial role in managing the flow of goods, services, and information within a hotel. This includes inventory management, transportation, warehousing, and coordination of operational services.
Warehousing and Storage: Efficient storage and warehousing solutions are essential for managing inventory, including linens, toiletries, food, and other supplies needed for daily operations.
Freight Budgeting: Logistics experts assist in budgeting for freight costs, ensuring cost-effective transportation of goods from suppliers to the hotel.
Project Planning: From hotel openings to refurbishments, logistics experts help design and execute project plans that align with guest expectations.
Transparency and Sustainability: Hotel logistics providers offer transparency by tracking shipments, deliveries, and goods in storage. Additionally, they help hotels achieve sustainability goals through efficient supply chain practices.
Why Choose Logistics Plus for Your Hotel and Hospitality Logistics Projects?
Logistics Plus provides outstanding value-added FF&E logistics and supply chain services through cost-effective operational planning, efficient execution, unparalleled visibility, and exceptional project management.
Our teams listen and then design customized and comprehensive supply chain solutions for our clients. Our world-renowned technology suite and customer portal can be operated independently or seamlessly integrated with virtually any ERP, providing data and analytics that drive efficiency and savings.
Experience: Over 27 years of growth and success for our customers, both large and small, in every facet of logistics.
Expertise: Dedicated project planners, managers, and logistics specialists who understand how things work “on the ground.”
Reach: Access to our established worldwide network of freight carriers, installation service providers, and flexible warehouse locations.
Reliability: Millions of FF&E/OS&E units installed over the past decade with a claim-free ratio of 99.5%.
Passion For Excellence™: We care and find a way to “yes” in everything we do
Ready to learn more? Visit our FF&E Logistics page and download our brochure, or contact us for more information.
Businesses that partner with a reputable third-party logistics (3PL) company to help manage their transportation can enjoy many benefits. Specifically, when you work with Logistics Plus, you enjoy the peace of mind from working with a top freight brokerage firm, a great supply chain partner, and a dedicated team of global logistics professionals.
With a managed transportation solution, the experts at Logistics Plus can identify more significant savings opportunities without increasing your staffing, and the savings we produce more than cover the staff we dedicate to your business. Whether it’s one, two, or ten, our dedicated logistics specialists work relentlessly to reduce transportation costs, protect compliance, improve efficiency, and optimize your supply chain.
Here are several key benefits to a company that partners with a 3PL to manage freight transportation.
Cost Reduction: 3PLs can often negotiate better rates with carriers due to their high volume of shipments. This can lead to significant cost savings for your company, especially if you don’t have high shipping volumes yourself.
Scalability: A 3PL can help you scale your logistics operations up or down as needed. This is especially useful for businesses with seasonal fluctuations in demand. They can provide the resources you need during peak times without you having to invest in extra infrastructure or staff.
Expertise: 3PLs have a wealth of experience in logistics and can help you optimize your supply chain. They can provide advice on everything from warehousing to transportation to customs clearance.
Multi-Mode Capabilities: Some 3PLs can support the management of all shipping modes, including parcel, LTL, truckload, air, ocean, or rail, both domestically and internationally.
Improved Customer Satisfaction: Using a 3PL can offer faster and more reliable shipping to your customers. This can lead to increased customer satisfaction and loyalty.
Technology: Many 3PLs can provide customized and integrated technology solutions for transportation management (TMS) and warehousing (WMS). Combined with business intelligence software, 3PLs can help provide a more complete picture of transportation costs across all modes.
Reduced Risk: 3PLs are also responsible for mitigating risks associated with transportation, such as delays or damage to goods. Some even offer shippers interest cargo insurance policies to cover high-value freight movements.
Focus on Core Business: By outsourcing your logistics to a 3PL, you can free up your time and resources to focus on your core business activities. This can help you grow your business and improve your bottom line.
Working with an established 3PL like Logistics Plus can be a great way for companies to improve their logistics operations, reduce costs, and focus on their core business.
Owning your own independent freight brokerage company can be an exciting venture, but it is important to understand the financial implications. Here are some key considerations:
Hotel and hospitality logistics refer to the specialized supply chain management services tailored for the hospitality industry. These services ensure that hotels, resorts, and other hospitality establishments have a seamless flow of the 
Businesses that partner with a reputable third-party logistics (3PL) company to help manage their transportation can enjoy many benefits. Specifically, when you work with Logistics Plus, you enjoy the peace of mind from working with a top freight brokerage firm, a great supply chain partner, and a dedicated team of global logistics professionals.