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Q: Starting a Freight Brokerage Business ( Answered 4 out of 5 stars,   2 Comments )
Question  
Subject: Starting a Freight Brokerage Business
Category: Business and Money
Asked by: nick_name-ga
List Price: $20.00
Posted: 20 Jan 2004 13:06 PST
Expires: 19 Feb 2004 13:06 PST
Question ID: 298487
I'm researching starting and running a freight brokerage business.  I
have seen http://www.entrepreneur.com/article/0,4621,287017,00.html
and purchased their guide, so please don't include these in your
answer.  I am also mostly familiar with the bond, permit, etc.
requirements, but I have no hands on experience with a carrier or a
shipper.  I am interested in building a web based portal (my
background is in .asp, SQL, etc.) and hiring agents.  I am hoping to
find some information on what I would need to have in place prior to
hiring my first agent.  One area that I'm not clear on is how freight
charges are calculated.  I'm not clear how websites such as
freightquote.com are able to give you an instant quote from several
carriers.  Does their site query the individual carriers in real time,
do they use static tables provided by their carriers, or ???  A great
answer would round out my understanding of this business, hopefully
point me towards my next step, and possibly lead to more questions. 
This is my first question, so if I have missed on my payment amount,
let me know and I will tip accordingly.

Clarification of Question by nick_name-ga on 27 Jan 2004 13:05 PST
Just wondering what is up with my question. Is it to general, boring,
not priced correctly, all of the above???  Anybody?  Anybody? 
Bueller?  I'm not looking for a business plan or anything, just some
general info that will perhaps leed to more questions (and perhaps a
business plan).
Answer  
Subject: Re: Starting a Freight Brokerage Business
Answered By: belindalevez-ga on 28 Jan 2004 05:11 PST
Rated:4 out of 5 stars
 
<Freightquote.com uses XPORTA?s software to calculate costs. The
service enables users to determine complete landed cost, identify
required documents and the need for an export license, and screen
their customers? against federal denied party listings.

XPORTA provides a Global Trade database which allows import duties,
general sales taxes, import taxes, other government fees and
transportation costs to be calculated.
http://www.xporta.com/solutions/trade_intelligence.html

Other companies also provide similar services.

The World Cargo Alliance offers a central online database of freight
costs. Subscribers are able to instantaneously quote their customers
to and from most any points worldwide via air, sea, and surface.
http://www.worldcargoalliance.com/forwarders/exclusiveprog/body_cata.htm

ASKK provides software to allow quotations.
http://www.askk.com/

Leonard?s guide online provides a nationwide freight rating system.
http://www.leonardsguide.com/default.asp?Form=ltl-freight-rates.asp
Leonards Guide.
http://www.leonardsguide.com/

RateBase is an internet based rate database program for freight
forwarders. RateBASE? can store your ocean rates (LCL and FCL),
airfreight rates, surface rates, and just about every other freight or
service cost that you care to submit. The program will display all
entered rates covering the lane requested, allowing the user to
compare rates at a glance.

You can enter your freight rates into RateBASE? on your own via the
simple data entry screens.
http://www.intuitivelogisticresources.com/services5.html

According to ICC Incoterms, the services a forwarder offer must include are:
Logistic options to destination.
Delivered services to exporters.
Letter of credit services.
Electronic exchange of documets.
Internet tracking for shippers, consignees and service providers.
Compliance reviews.
Cost analysis.
Hazardous materials audits.
Marine insurance.
Logistics options based on customer goals.
A single source for knowledge about the export process.
http://66.102.11.104/search?q=cache:6J69dVYx9hoJ:www.medey.com/pdf/Working%2520w%2520selecting%2520Frt%2520Fwdr%2520Dosc%2520Incot%2520Imprtng.pdf+%22freight+forwarders%22+%22quoting+prices%22&hl=en&ie=UTF-8

For further information about running a brokerage.
Transportation Intermediaries Association offers a new brokers kit for
$125.00. It contains a manual with 160 pages of articles covering
every aspect of the industry. It also contains sample contracts,
including carrier contracts.
http://www.tianet.org/tia.asp>


<Search strategy:>


<"freight brokers" association>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22freight+brokers%22+association>

<"freightquote">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22freightquote%22>

<software " freight rates">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=software+%22+freight+rates%22>


<Hope this helps.>

Request for Answer Clarification by nick_name-ga on 29 Jan 2004 13:27 PST
Thank you for the information you have provided, but I'm not sure that
it really answers my question.  I wanted to know

 "...how freight charges are calculated.  I'm not clear how websites such as
freightquote.com are able to give you an instant quote from several
carriers.  Does their site query the individual carriers in real time,
do they use static tables provided by their carriers, or ???"

How does XPORTA (or anyone elses) software actually work to generate
the quote?  I understand that the freight amount is going to be based
on dimensions & weight, but how does XPORTA (for eg) *know* what the
various carriers would charge to move the load.  Do carriers charge a
flat rate per mile, or does XPORTA query each carrier in real time???

Clarification of Answer by belindalevez-ga on 30 Jan 2004 23:42 PST
<I have contacted XPORTA via email to try to get an answer to the
points that you have raised.

I will post their response as soon as I get a reply.

In case you want to contact them directly yourself, I have listed contact details.

Sales
Jim Meagher
Vice President, Global Sourcing Field Operations
jmeagher@xporta.com
(617) 435-3121

Public Relations
Monica Procter
Bolder Communications
monica@bolderpr.com
(720) 320-1297

Address
XPORTA
275 Saratoga Ave.
Suite 260
Santa Clara, CA 95050
Tel: (866) 490-0853 toll free
Fax: (408) 556-1401

Xporta - contact details.
http://www.xporta.com/contact/index.html>

<Hope this helps.>

Request for Answer Clarification by nick_name-ga on 31 Jan 2004 15:31 PST
Maybe my question wasn't worded well enough, but I think you missed
the point or weren't the best person to answer this question.  One
paragraph describing how a freight broker generates a quote would have
been a 5 star answer.  Maybe I will try rewording and reposting to get
my answer...
nick_name-ga rated this answer:4 out of 5 stars
Thanks

Comments  
Subject: Re: Starting a Freight Brokerage Business
From: clockwork_23-ga on 23 Mar 2004 12:57 PST
 
Hello - I have very specific answers to you initial question,
including the names, contacts and numbers of frieght forwarders that I
personally have delt with and have proven to be reliable. If you are
still interested, please post another comment. It is much simpler than
many make that business out to be.
Subject: Re: Starting a Freight Brokerage Business
From: nick_name-ga on 23 Mar 2004 15:19 PST
 
clockwork_23-ga,

I am interested in any/all info you can provide.  I'm still not clear
on how carriers generate a quote (x cents per mile * the weight, or
what???).  Did you want me to repost the question or were you going to
post a comment?  Thank you for your time and interest...

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