Freight broker salary: how much does a freight broker make

Brokers and charterers need to be able to calculate the transport costs for the intended directions of international cargo flows in order to name the idea of a freight rate. These are intermediaries between shipowners, who are looking for cargo for their ships, and charterers, who demand ships to transport their cargo. What is a freight broker salary and how much should I expect when applying for a job?

How do freight brokers get paid?

The chartering process is a complex and intricate system of actions in which several parties take part:

  • charterer. The person who selects the vessel for the conclusion of the contract. This role can be played by the consignor, seller, buyer, intermediary;
  •  freighter. The person who will transport the goods. This could be a carrier, a shipping company, a ship owner, etc.

Their relations are regulated under the contract, under the terms of which one party (the charterer) is obliged to transfer the cargo within the specified time. The other party must accept the goods on time and at the agreed place, and also pay the set amount (freight).

An important point is the distribution of costs between the parties for loading / unloading the vessel of the so-called stevedore works. As a rule, these works make up from 10 to 30% of the cost of transportation. This moment is prescribed in advance in the contract. In practice, there are the following options for the distribution of costs:

  • Free in – the charterer pays for loading;
  •  Free in and out — the shipowner does not pay for loading and unloading;
  • Free out – the charterer is obliged to pay for the unloading of the vessel;
  •  Free in and out, stowed — the shipowner does not pay for hold work;
  •  Free in and out, stowed and trimmed – the shipper pays for loading, unloading, and hold work.

Theoretically, there is no need for other participants in sea freight: there is a buyer and a seller – so they negotiate with each other. However, in practice the situation looks very different and freight brokers play a huge role in sea chartering.

How much does a freight broker make per load?

For one loading, you can earn about $100, depending on the complexity and weight of the objects. Most freight brokers work on commissions in the freight industry. Freight brokers who provide quality shipping methods at affordable prices develop long-term business relationships with their clients, which is good for earning a commission-based salary. The more hours worked, the more commissions a freight broker can earn. Some freight brokers work part-time, but if the broker has trustworthy clients, the part-time work does not affect their commission.

How much do freight brokers make a week?

The average salary per week is $800 – $1300, depending on how many loads and how much the specialist performs.

How much do freight brokers do per month?

A freight broker’s salary varies depending on the company the freight broker works for, the benefits, the stability of the industry, and the level of experience of the freight broker. However, on average, a freight broker can earn around $3,900. The location where a freight broker works may determine the salary of the worker.

Do freight brokers make good money per year in the USA?

Freight brokers can earn over $100,000 a year. Those freight brokers who make more than the average salary are usually business owners who have freight agents working for them in the office. The costs of owning a freight brokerage business can be high, but if the business generates a steady income, the profits can cover any costs.

The majority of such freight deals are concluded between cargo owners and ship owners through intermediaries – ship brokers. Each of them is famous not for its capital (it is almost always small), but for know-how in the form of a complex set of collected information, knowledge, extensive business connections, rarely in all, more often in certain sections of the global freight market. The average salary in the United States of America is between $3,900 per month or $45,000 per year.

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