How much do freight brokers make off each load? (2024)

FAQs

How much do freight brokers make off each load? ›

Depending on which sources and data you look at, you can find various reports on the average margins for freight brokers. Data from throughout 2020 has shown us that freight brokers are averaging around 15% overall with each load yielding around $270 in profit.

Many brokers earn a salary and have a commission on top of that. Some work only for commission. The average commission for a freight broker is 13%-15% of the gross margin. The final income depends on what types of freight are involved and what carrier performs the delivery.

Freight brokers typically earn between 10% to 30% profit margins on a shipment, depending upon the mode of transportation, the complexity and distance.

Gross margin numbers are often displayed as a percentage of net sales and for a freight brokerage, usually range from 10% - 20%. This means that for every $1 you pay your brokerage, they usually take away less than $. 15 in gross margin.

Freight Brokers' Income Sources

Rather, it's a percentage of the difference between the price the shipper pays and the shipping rate. According to a Freight Waves survey, the average commission is 13% to 15% of a load's net revenue. Example: A shipper pays $4,000 to a licensed freight broker to move a load.

Can freight brokers make 7 figures? Yes, freight brokers can indeed make 7 figures – many have successfully grown 6, 7 and even 8 figure businesses.

Top Paying Companies

Employers include Western Express, King of Freight and FreightCenter.

One of the biggest downsides to using a freight broker is not having total control over the shipment. Once the load is given over to the broker, the shipper's ability to manage that load may be hindered. Freight brokers must make money somehow. They do that by charging more for a load than they're paying the carrier.

Freight brokers earn a commission on each load they ship. So, a way to earn more money is to ship more loads. However, for some freight brokers, this is easier said than done.

So you might be wondering: is there a demand for freight brokers? Is there still a place for freight brokers in today's ever-changing environment? At Tallgrass Freight, we believe the answer is a resounding yes. The role of freight brokers in the trucking industry has grown dramatically since the early 2000s.

What is the commission split for freight broker agents? ›

Freight Agent Commission Split

According to Freight Tec, companies within the industry offer commission splits that range from 25 – 70% being paid to the agent. The amount of commission varies depending the third-party logistics company/freight broker you work for and how they structure their agent's compensation.

If you're an independent licensed freight broker, you're typically paid a commission percentage, as well as some extra for shipping the freight to the carriers. A larger company will usually get a base salary plus commission, fees, and benefits.

The rise of freight brokerages

In 2000, freight brokerage was a cottage industry, representing a small percentage of the trucking industry — 6%. Fast forward to 2023, and freight brokers handle more than 20% of all trucking freight.

Freight agents are generally on a commission split that will vary around 40-70% of the profit. The licensed freight brokerage keeps 30-60% of the profit which is used for running the back-office tasks and their own profitability.

What Are Common Profit Margins in the Trucking Industry? As in most other industries, there's no standard profit margin that exists in trucking. However, most trucking companies see their margins fall somewhere between 2.5% to just over 8%. Profit margins aren't always what they seem, however.