What is a Freight Broker?
Freight brokers are independent businesses that find the cheapest and safest transportation options for the cargo they are transporting. They do this by using their knowledge of freight pricing, contract logistics, and international regulations to come up with a plan that will save their clients money and have their shipments delivered on time. Freight brokers can be employed by various industries like manufacturing, retail, import/export, or even international business travelers looking to ship things back home.
In addition to earning up to $ 100,000 + per year, successful freight brokers are an essential part of shipping goods and cargo across the United States.
Freight brokers in the United States are responsible for:
- Oversee the entire product delivery process (from warehouse to store)
- Being the communication link between business and career
- Adjust rates and contracts between carrier and business in a small fee
A freight broker company plays an important role in moving goods by connecting shippers and carriers by forming an important link in the freight industry.
How to become a freight broker?
Setting up a freight brokerage business for trucking and transportation means being able to take full responsibility for the entire part of the shipping process. New freight brokers will need a comprehensive understanding of what it takes to conduct a licensed freight broker business before embarking on their journey.
Before you become a freight broker, ideally you must meet a number of requirements before completing a freight broker training course, as well as registering a business and applying for a DOT license with the FMCSA. Finally, to continue the practice and maintain your license, you will also need a $ 75,000 freight broker bond.
Guidelines or steps to follow to become a freight broker
Below is a brief description of some freight broker guides or steps:
- Gain industry experience and study
- Sign up for Freight Broker Training
- Choose a company name and register your business: Sole Proprietor, Partnership, Limited Liability Company, or Corporation
- Develop a Business Plan
- Find the Right Carriers
- Apply for a USDOT number and get your broker authorization
- Get a freight broker bond
- Get contingent cargo insurance and general liability
- Designate a Process Agent in Each State
- Get Your Equipment: Computer, Printer, Copy and fax machine, Landline & Mobile Number, Office Supplies, & Solid Internet connection
- Get adequate initial operating capital
- Market your freight broker business
How long does it take to become a successful freight broker?
Although the duration of a freight broker training course is usually 30 to 45 days, the whole process of qualifying and registering may vary. This is because after your training you will need to collect all the relevant documents and then apply to the FMCSA for your license, as well as get insurance and proper freight broker bonds.
In addition, it is worth noting that most training institutes will allow you to take courses at your own pace if it is important to you or you move from one profession to another.
How much does it cost to be a successful freight broker?
Naturally, you need to invest some cash in yourself and your business to start the process of becoming a freight broker. Upfront costs can range from $ 4,000 to $ 10,000, and there will be annual costs that you need to calculate. In addition, much of the final cost of your freight brokerage will depend on your specific circumstances.
Generally speaking, the account you should have:
- Licensing and Registration
- Surety Bond
- Equipment and Office Space
- Marketing and Advertising