Is a 3PL a broker?
Though the terms are occasionally used interchangeably, they are not the same thing. In simplest terms, a 3PL is a partner for your business's full supply chain needs. On the other hand, a freight broker is an intermediary that works between your business and a shipping partner.
Do freight brokers make a lot of money?
Freight brokers make their money in the margin between the amount they charge each shipper (their customer) and what they pay the carrier (the truck driver) for every shipment. Although it varies from one transaction to the next, healthy freight brokers typically claim a net margin of 3-8 percent on each load.
Is becoming a freight broker worth it?
Being a freight broker can be very lucrative. After completing the freight broker training and entering the industry, a competent freight broker can earn commissions ranging from 6 to 7 figures per deal! Some brokers even go all the way to 8 figures!
What are the benefits of a 3PL brokerage?
Let's talk a bit about each of these 3PL core benefits.. Increased Supply Chain Efficiency. To do their jobs well, 3PLs continuously work to optimize their customer's supply chains. ... Improved Transportation Spend Analysis. ... Saved Time That Can Be Focused Elsewhere. ... Transportation Experts Join Your Team.