There are certain people who match the need for transportation with the means for transportation and they are called “freight brokers”. Essentially they are middle men for shipping but are not involved in the physical act of it. When there is business there will always be a need for mediators and this article is about that need and more specifically how to become a freight broker.
Freight broking is one of the best brokerage options that one can pick when associated with a business. These brokers will locate all transportation and shipping, domestic or international, and fulfill all needs appropriately. There are schools that provide the training on how to become a freight broker as it has become a very profitable international business. Global opportunities for trade are open now and because of that, the need for freight brokers has risen. And because of these needs there will be more people asking how to become a freight broker to take advantage of the ever expanding global market. This can very easily be seen as a new challenge with a huge payoff.
An individual needs to have a working knowledge of all of the transport facilities and the ability to develop a good rapport with those running these facilities in order to develop transportation routes and keep these routes reliably available. A freight broker earns commissions on both sides of these deals.
If you want to learn how to become a freight broker, read and follow the tips below:
Step 1: Get Professional Training on How to Become a Freight Broker
There are schools that do offer the training that is needed for freight brokers and many transport organizations offer training programs as well. It should be noted that there is not a formal “degree” requirement. To learn how to become a freight broker you need to learn to have marketing, selling and negotiating tactics.
Step 2: Obtain the Freight Brokerage License and Registration
You are required by the FMCSA or Federal Motor Carrier Safety Administration to obtain a license as a freight broker. The forms are filed at a fee of 300$, in addition to this a collateral must be paid by the freight broker in the sum of a 10,000$ surety bond. This bond is for security purposes in the case that a broker fails to meet their obligations. There is one final piece after the bond and that is the selection of a processing agent and filing a form “BOC-3” this costs 50$. After this is completed you are set to start your freight broking business.
Step 3:Networking
This is a very important part of being a freight broker. You compile a list of the companies that will need transportation as well as those that provide it in your area. With these you can start to make connections and introduce yourself to both of the business creating opportunities on all sides. A lot rides on you as you need to work out paperwork and discussion to make sure people are getting cost effective agreements.
This was hopefully a good start for anyone looking to learn how to become a freight broker. There is a lot more to the position than words can say, much of the process of becoming a freight broker must be actually experienced to understand. As with any well paying job or position the knowledge gained through experience is always the most valuable.
Sources:
Lynn, Jacquelyn Start Your Own Freight Brokerage Business (Entrepreneur Magazine’s Startup) 2006
Stroh, Michael B. A Practical Guide to Transportation and Logistics 2006
