When choosing their career path, many people may not consider becoming a freight broker simply because it isn’t a familiar term. Other phrases used are are a truck broker, freight agent, or transportation broker. All of them mean the same thing, which is being the intermediary between a company’s product and the shipping company or carrier. In this position, you are responsible for arranging third-party transport of products and do not ever have physical control of the property.
This career is gaining popularity because it is both challenging and rewarding. You have to be self-motivated, organized, and dedicated. It is also gaining popularity with companies that choose to use the service. In the current economy, it is important to cut costs wherever possible. Many business owners find that utilizing the services of a third party, such as a freight broker, is more cost effective than having a transportation department in-house. There are a few steps you will need to take on your way to becoming a freight broker. The legal requirements are to apply for your operating authority from the FCMSA (Federal Motor Carrier Safety Administration), get a $10,000 surety bond, and file a BOC-3. Prior to taking these steps, however, it is a good idea to take a freight broker training course which will give you the foundation you’ll need to be successful.
Once all the above steps have been completed, you are ready to get your business off the ground. Many of those that have chosen this line of work decide to initially work out of a home office. This is because there is very little initial expense associated with working from home. The basics are a computer with high speed internet, a fax and copy machine, a land line phone with at least two lines, and a broker software program. Most people have everything except the software, so that would be the only initial business expense. Once their business is successful, they may want to expand into a brick and mortar location. This would be an additional expense, but on the other hand would allow the hiring of agents which would allow the business to expand even more. Agents normally work on a commission basis depending on the suppliers they obtain contracts with.
If this sounds like a career that would interest you, the professionals at Transport Training International would be happy to answer any questions. They have many years of experience in preparing individuals for a job in the freight broker business.