Cargo Broker Salary and Earning Potential Explained

Cargo broker salaries can vary widely depending on factors like location, experience, and industry.

In the US, cargo brokers can earn an average annual salary of around $63,000.

Cargo brokers with more experience, typically 10+ years, can earn upwards of $100,000 per year.

Some cargo brokers may also receive commissions on the cargo they move, which can significantly boost their earnings.

Salaries for freight brokers vary greatly depending on the state they operate in.

According to the data, the top 10 states with the highest freight broker salaries are led by Kansas with an average salary of $75,686.

Freight brokers in Kansas can earn significantly more than those in other states, such as West Virginia, which has the lowest average salary of $37,750.

The top 5 states with the highest freight broker salaries are Kansas, Arkansas, Illinois, Utah, and Georgia, with salaries ranging from $63,896 to $75,686.

Here's a breakdown of the top 10 states with the highest freight broker salaries:

If you're considering a career as a freight broker, it's worth noting that salaries can vary significantly from state to state.

Kansas takes the top spot with an average salary of $75,686.

Arkansas comes in second with an average salary of $71,220.

Illinois ranks third, with an average salary of $66,448.

Utah and Georgia follow closely behind, with average salaries of $65,250 and $63,896 respectively.

Florida, Ohio, and Texas round out the top seven, with average salaries of $62,515, $62,268, and $61,921 respectively.

Iowa and New Jersey bring up the rear, with average salaries of $60,744 and $56,470 respectively.

Here are the top 10 salaries by state for freight brokers:

If you're considering a career as a freight broker, it's essential to know the average salaries by state. The bottom 10 salaries for freight brokers are found in West Virginia, where the average salary is $37,750.

West Virginia is followed closely by Vermont, with an average salary of $38,040.

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Alaska and Wisconsin also make the list, with average salaries of $39,620 and $39,710, respectively.

Hawaii rounds out the top five with an average salary of $39,920.

North Dakota, Nevada, Kentucky, Delaware, and Maryland all have average salaries above $40,000, with North Dakota leading the pack at $41,100.

Here's a list of the bottom 10 salaries per state for freight brokers:

Keep in mind that salaries can vary depending on sales commissions, so your actual salary range can differ from the listed average.

The average annual salary for a freight broker in the U.S. is $65,234, according to Indeed.

Freight broker salaries can vary substantially, with the median salary for freight brokers being $43,740, meaning that half of all freight brokers make equal to or less than that amount.

At the lowest end of the spectrum, 10 percent of freight brokers earn $26,780 or less, while the highest-paid 10 percent make $69,040 or more.

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Freight brokers working as salaried employees at a freight brokerage company can earn a median pay of $40,000 salary + 13.2% commission on gross profits, according to Freightwaves.

This means if they bring in $2,000,000 in sales with a 15% profit margin, they would earn $79,600 estimated income.

Licensed freight brokers who own their own freight brokerage business can earn between $150,000 to $200,000 estimated income, depending on their profit margin and business expenses.

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

The higher the profit margin, the higher the freight broker pay will be, whether they're working as a salaried employee or owning their own business.

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Becoming a freight broker or freight agent can be a lucrative opportunity, but it's not a get rich quick scheme. It's more like a get rich slow type of business that requires skills, planning, resources, and hard work.

Researching freight broker earnings potential is crucial before launching a freight brokerage firm. In fact, the author of the article realized this quickly when launching their own business in 2003.

There are different types of freight broker compensation, including W-2 freight broker pay, licensed freight broker pay, and 1099 independent freight agent pay. These options have varying levels of earnings potential.

To give you a better idea, here's a breakdown of the different types of freight broker compensation:

Top 10 licensed freight brokers reported a gross revenue of $10 million in 2023, according to the article.

Most freight brokers are paid on commission, meaning they earn a percentage of the profits on every transaction they facilitate. This commission-based structure can lead to a big difference in pay between entry-level and seasoned brokers.

The average commission rate for a freight broker is 13 to 15 percent of gross margin, according to a survey by FreightWaves. Experienced brokers can earn significantly more due to their expertise in attracting high-value clients and charging higher commission rates.

Junior brokers often close fewer deals than their more experienced counterparts, which means lower profits. Seasoned brokers, on the other hand, can earn mid-$80k to over $200,000 per year with commission included.

Earning potential for freight brokers varies greatly depending on their role and classification. A licensed freight broker plays a crucial role in the efficient movement of freight throughout the United States and around the world.

Freight brokers' income is influenced by a variety of things, making it difficult to determine their earnings. To make sense of this question, it's helpful to divide freight brokers and agents into three categories.

The W-2 Freight Broker's income is typically tied to a salary or hourly wage, whereas the Licensed Freight Broker's income can be more variable and dependent on the number of shipments they broker. The 1099 Independent Freight Agent's income is often tied to their ability to secure new clients and negotiate favorable rates.

Freight brokers can earn more by specializing in high-demand niches or by developing strong relationships with reliable motor carriers. For instance, a freight broker who focuses on shipping perishable goods may earn more than one who focuses on non-perishable goods.

Here's a breakdown of the three categories:

Freight brokers who are new to the industry may find it challenging to determine their earning potential, but by understanding the different categories and factors that influence their income, they can better plan their careers.

As a 1099 independent freight agent, you work as an independent contractor and get paid a commission for the deals you bring in, not a regular salary. You'll earn a percentage of the profits, which can vary based on the commission rate you agree to and any extras or bonuses your brokerage company offers.

If you bring in $2 million worth of sales with a 15% profit margin and a 70% commission rate, you'd make $210,000 in gross freight agent commissions. This is calculated by multiplying the gross sales by the profit margin and then by the commission rate.

Business expenses will eat into your income, but you can estimate earning $100,000 to $150,000 based on your commissions. The higher the profit margin, the higher your pay will be as an independent freight agent.

The average annual salary for a freight broker in the U.S. is $65,234, according to Indeed.

Freight agents, who work under freight brokers, earn slightly less at $61,259 per year.

The median salary for freight brokers is $43,740, which means that half of all freight brokers make equal to or less than that amount.

At the lowest end of the spectrum, 10 percent of freight brokers earn $26,780 or less.

In contrast, the highest-paid 10 percent of freight brokers and agents make $69,040 or more.

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To understand freight broker earnings, it's essential to consider the different types of freight brokers and agents. A freight broker's income can vary significantly depending on their classification.

There are three main categories of freight brokers and agents: W-2 Freight Brokers, Licensed Freight Brokers, and 1099 Independent Freight Agents.

W-2 Freight Brokers are employees who work for a company and receive a steady income. Their earnings are typically reported on a W-2 form.

Licensed Freight Brokers are independent contractors who have obtained a license to operate as a freight broker. They often earn more than W-2 Freight Brokers, but their income can be unpredictable.

1099 Independent Freight Agents are also independent contractors, but they don't need a license to operate. They often work on a freelance basis and earn a commission on each shipment they arrange.

Here's a breakdown of the three categories: