A freight broker is a person or a company that acts as an intermediary between someone who needs to ship cargo and a shipper who is willing to make the transport. A freight broker is able to find a reliable shipper that can be hired for an affordable price.
How can I become a freight broker?
There are a few legal steps that you need to take. First of all, you need to get permission from the Federal Motor Carrier Safety Administration. After that you need to post a surety bond and file your BOC-3. You can fill out a form online, and there will also be some fees that you need to pay. The surety bond is about $10,000 and the other fees will add up to about $500.
Is there any difference between being a freight broker and a freight agent?
Yes. A freight broker owns their own business and has the legal right to operate as a broker. A freight agent is a person that works for a freight broker and only receives a part of the earnings.
How can I get started?
Freight brokers and freight agents usually start by working at home. The environment is more pleasant and they can keep the costs down. You only need a computer with a good Internet connection, a fax, a copy machine, a telephone and a broker software program.
Do I need to have some special knowledge about the business before I start?
Not necessarily, but you can go to a freight broker training school to get some extra knowledge. Most of the people who attend these classes are more successful in this business. It can help you improve your management skills and enable you to have a more profitable business.