How to Become a Freight Broker

If you want to become a freight broker, you need the right training and the license. A freight broker arranges for truckers with spare space to transport goods belonging to manufacturers. As a freight broker you will never have to take possession of the goods that need to be transported. Instead you facilitate the contact between truckers and owners of goods.

Training

There are many reputable organizations that offer courses for those wishing to become a freight broker. There are both online and contact classes - so you can choose the course that suits you the most. Even though training is not mandatory for a freight broker, you do need some experience before you can start out on your own. If you do not want to attend school again, try joining an established broker and learning the ropes. This will help you when you start your own brokerage.

License

To become a freight broker you must also be registered with the Federal Motor Carrier Safety Administration (FMCSA). This is because you need this license to operate as a freight broker. For obtaining the license you first need to file the 0P-1 Application for Motor Property Carrier and Broker Authority form that is mandated by the FMCSA. Then, you have to pay a registration fee of $300. After that you need to wait for the FMCSA to assign a Motor Carrier Number to you. Once you obtain this number you can complete the rest of the freight broker application process.

Once the registration is complete, you need to obtain insurance for $10,000. This can be done by contacting an insurance agent for a bond or surety for $10,000. Now, you have to file papers that prove your insurance with the FMCSA. Next you need to choose and appoint an agent in each state in which you plan to have business to represent you in case of legal action. These details have to be filled in form BOC-3 and filed with the FMCSA. It will take six weeks for the freight broker license to be processed and given to you. Once it is in your possession, you can either start your own business or get employment as a freight broker.

Freight Agent

If you are planning on starting your own business, you will need a computer, a telephone, and a fax machine. It is best to work for a broker for some time to get to know the ropes. This will be a cheaper way of getting to know the business than going to school for it. You get paid instead of paying school fees. If you have yet to obtain a license you can start off as a freight agent. This does not require a license, but you do need to work under the umbrella of a licensed freight broker. The broker will take a part of your commission as their fee.

To be a successful freight broker you need to develop extensive contacts both in the trucking industry and in the companies that manufacture goods.