In order becoming a broker of freight there is lots of paperwork and it takes plenty of time. Once you are an authorized freight transportation broker, all that effort will be worth it. The first thing that you should consider is enrolling in a training program. There are many of brokering training programs will teach every one of the aspects that are related to being truly a freight broker. You will find freight broker training programs online in addition to classroom programs.
Before you can start work in the field, there are several steps that you should complete so that you are in compliance. The first thing that you should do, is register with the FMCSA (Federal Motor Carrier Safety Administration). You should file the Application for Motor Property Carrier and Broker Authority form.
Also required is a 300 dollar registration fee. When you register a with the FMCSA, you should wait until you are assigned a Motor Carrier Number (MCN), one which just complete the remaining of your application.
The next step is to acquire insurance for the sum of $10,000 dollars or you can post a connection for that amount. You can either work with a local insurance agent to acquire a policy or contact a bank to set up the bond amount.
Once you have the right coverage, you should file proof insurance with the FMCSA. Once you have every one of the proper endorsements you will then need to file a Designation of Process Agent Form (BOC-3 Form) in every state that you will be broking in. What is a BMC 84 bond? These forms also need to be filed with the FMCSA. After you have completed every one of the steps that have been listed above, you’ll now play a small waiting game. It can between 4 and 6 weeks to process your application. Once you are granted a FMCSA Authority, you can start to work as an authorized broker of freight.
Becoming a freight broker is a time intensive process, but when you obtain your license now you can work as your own personal boss, or find job by having an already established company. When you yourself have never been a broker, having a good training program could prove beneficial in that it will show you the procedure of finding truck freight and matching it to a truck driver.
Among the biggest challenges as a brand new broker may face, is the possible lack of contacts, both trucking companies and manufacturers. Patience will be needed since it does take time to build relationships with shippers and carriers. Freight brokers earn a commission on the truck freight which they find, in order relationships grow and trust is earned, hang in there because this can be a very lucrative business, but there i also some challenges having to manage so many people. The broker is held accountable for the freight until it is really delivered so keep that in mind also.