Freight broker earnings are calculated on a per-load basis and represent the difference between the rate paid to the carrier for transporting the goods and the rate charged to the shipper. For example, if a broker secures a load for $2,000 and pays a carrier $1,500, the broker’s gross earnings for that load are $500. Several factors influence this amount, including market conditions, the type of freight, the lane’s distance and difficulty, and the broker’s negotiation skills.
Understanding per-load profitability is crucial for freight brokers to run a successful business. This metric provides insights into operational efficiency, pricing strategies, and overall profitability. Historically, brokers relied on established relationships and manual processes. However, advancements in technology and increased market transparency now empower brokers with data-driven tools and resources to optimize their earnings per load.
