
Learn how to get a freight broker license and move freight in a few easy steps.
The freight industry is continually expanding and having a freight broker license gives you the authority to earn money by moving truck freight without actually hauling it.
A freight broker license allows freight brokers the authority to move freight by connecting shippers with carriers, essentially brokering the deal. Freight brokers are hired by shippers who have freight that needs to be hauled from one location to another.
Let’s say there is a furniture warehouse in Texas that needs to ship its freight to department stores in Georgia. The warehouse representative is the shipper, who needs to find a carrier to haul the load. This is where the freight broker comes in.
With a freight broker license you are paid by the shipper to find a carrier to haul the load. You can use your broker authority to find qualified carriers on load boards like Truckloads by either posting information about your freight or by doing a truck search to find a potentially interested carrier.
To get a freight broker license and have broker authority you must apply for a US DOT number with the Department of Transportation first. Once approved, use your DOT Number to get a Motor Carrier (MC) number and broker authority with the Federal Motor Carrier Safety Administration (FMCSA). This is approved through the completion of the OP-1 Form which includes a $300 application fee.
Having broker authority isn’t the only requirement to become a freight broker. You will need to decide if you want to start a freight broker company or if you want to work for an established brokerage company.
Regardless of your choice, you should be sure to do ample research in order to better understand the nuances of the trucking industry and which options are best for you. We’ve provided a step-by-step guide to help you become a freight broker.




What is a Freight Agent? [p] Find out what is a freight agent and how they are different from freight brokers.[/p]
[h2] What is a Freight Agent? [/h2]
[p] A freight agent is an independent contractor who helps connect shippers with carriers willing to haul the freight. A freight agent works for a freight broker and plays a crucial role in the movement of freight, as a customer-facing salesperson of sorts who has to find available carriers to ship a client's freight. [/p]
[h2] Freight Broker vs Freight Agent [/h2]
[p] The difference between a freight broker vs freight agent is that a freight broker has a <a href="https://truckerpath.com/blog/freight-broker-license/">freight broker license</a> through the FMCSA and is liable for the transportation of the load. A freight agent does not require a license, does not assume the risk of client's creditworthiness in terms of invoice collections and does not require a freight broker bond. [/p]
[h2] Freight Agent Salary [/h2]
[p] A freight agent salary can be paid as hourly or annual salary and they can also earn a commission percentage based on the profit they are able to bring in for the freight broker. According to the national average freight agent salary is $58,661 (based on 197 freight agent employee reports). Some freight agent salaries are only commission based so there are endless possibilities for earnings. [/p]
[p]Let's say that you're a freight agent and you work for a freight broker who is willing to pay you 50 percent commission on the profit of moving a truck load. You found a shipper who is willing to pay up to $2,500 to move a load from Los Angeles to Denver as truck freight. [/p]
[p]Using a load board you found a qualified carrier that will move haul the freight for $2,000. The $500 difference is the profit earned for the brokerage and your cut of 50 percent of $500 is a commission payment of $250. It's no surprise to see that a freight agent can have tremendous earning opportunity. [/p]
[p] If being a freight agent doesn't seem as lucrative, you can <a href="https://truckerpath.com/blog/how-to-become-a-freight-broker/">learn how to become a freight broker</a> and even start your own freight broker company. [/p]
[h2] How Freight Agents Find Carriers [/h2]
[button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=freightagent&utm_campaign=aug23"]Try Truckloads for Free[/button-green]
[video id="o_tsuJHWayo"]
[p] The best way for a freight agent to find a carrier is by using load boards. Load boards provide freight agents with a marketplace where they can post their client's freight for potential carriers to agree to haul. [/p]
[p] There is a certain level of trust a freight agent must have in a carrier they choose to do business with. Without the trust that a carrier is qualified to haul the load and will see the job through, a freight carrier puts the freight broker they are working for at risk and can lead to complications and the inability to earn. [/p]
[h2] Importance of Networking and Negotiating for a Freight Agent [/h2]
[p]From the use of load boards like Truckloads, freight agents can network with qualified carriers and work to develop trusted business relationships that last. Keep in mind that negotiations between the freight agent or broker and the carrier is a huge determinant of potential success. [/p]
[p] Although you want to earn the maximum amount, you also need to consider the carrier's needs and the need for knowing when to do a little give-and-take will go a long way in establishing a rapport with carriers. At the end of the day, a freight agent can't make a living if they can't find willing carriers to haul the load. [/p]
Industry Update - April 5, 2019 <h5>By Jeremy Feucht</h5>
<h3><strong><u>Did you Know?</u></strong></h3>
On April 3, 1974, the worst series of tornadoes ever recorded hit the US and southern Canada. With over 50,000 people affected in total and six states declaring a State of Emergency, many big rigs were sent in to do the cleanup. Xenia, Ohio was the first hit and it would need three months and over 200 trucks to finally cleanup the disaster.
<h3><strong><u>Trucking tip of the Week</u></strong></h3>
Its that time of the year again. Spring is here which means warmer weather and concern about your tires needs to be at the front of your mind. As the weather warms, the amount of air pressure in your tires and the tread remaining on them will really start to show. Lower air pressure means more friction on your tires. More friction that your tires create, the more stress that is placed on them. Be careful out there.
<h3><strong><u>Toll Road Fight</u></strong></h3>
OOIDA and the National Motorist Association, for now, have lost its bid against the state of Pennsylvania <a href="https://www.post-gazette.com/news/crime-courts/2019/04/04/Pennsylvania-Turnpike-federal-lawsuit-dismissed-tolls-truckers-organization-Port-Authority/stories/201904040090">to remove the tolls</a> on the Pennsylvania Turnpike. On April 4, 2019, US District Judge Yvette Kane approved a motion by lawyers for the turnpike and the state of Pennsylvania to dismiss the charges that claimed over $6 billion in tolls had been collected illegally since 2007.
<h3><strong><u>Truckers to the Rescue</u></strong></h3>
As I have long stated, this country would fold without the work of truckers. Here is some more proof of that. With the flooding and devastation that has occurred across the Midwest, farmers and ranchers are having a difficult time keeping their heads above water, let alone that of their cattle. Knowing their plight, <a href="https://www.freightwaves.com/news/trucking/truckers-step-up-to-help-farmers">truckers have come to their rescue</a> with hay to help get them through. Where would we be without the American trucker?
<h3><strong><u>Regulations</u></strong></h3>
With so many regulations, and general vagueness that the personal conveyance rule is written, it is no wonder FMCSA’s <a href="https://www.ttnews.com/articles/fmcsa-drivers-dont-overthink-personal-conveyance-time">Joe DeLorenzo had to field so many questions at MATS</a> surrounding the issue. His message was simple: “Don’t over think it.” He basically stated that if what you are doing is for personal reasons, looking for food, parking, etc. then it is personal. If it is not personal, then it falls under hours of service. It does not matter if you are hooked to your trailer or not.
Trucking Authority [p]Trucking authority allows owner-operators an opportunity to be their own boss and potentially maximize earnings by hauling freight.[/p]
[h2] Trucking Authority [/h2]
[p] Trucking authority also known as operating authority means the FMCSA will allow you to transport freight as a motor carrier. Let's say you've been a company driver for over a decade now or that you're a leased owner operator and want to start your own trucking company. Getting your trucking authority is the next step. [/p]
[p]Essentially, you will be on your own to find and book loads giving you the freedom to search on load boards for truckloads that are the best fit for you. This allows you to set your own schedule, decide what type of loads you want to haul and what routes you want to take.
[/p]
[h2] Trucking Authority Requirements [/h2]
[p]Trucking authority requirements are implemented by the FMCS trough the Unified Registration System (URS)for new applicants seeking trucking authority.To get trucking authority you will need to register through the
<a href="https://portal.fmcsa.dot.gov/UrsRegistrationWizard/">Unified Registration System</a> first.
[/p]
[p]It will take about 20-25 business days to process according to the FMCSA (unless subject to further review by the agency, in which case it could take an additional eight weeks).
[/p]
[h2] Types of Trucking Authority [/h2]
[p] The different types of authority will affect the type of insurance a carrier will need to meet the requirements of the FMCSA. [/p]
[ul]
[li] Motor Carrier of Property - requires proof of public liability and cargo insurance [/li]
[li] Motor Carrier of Household Goods - doesn't require cargo insurance [/li]
[/ul]
[p]
Regardless of the type of authority, you will need to complete this <a href="https://cms.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/op-1-instructions.pdf">OP-1 form</a> to file for trucking authority.
[/p]
[h2] Trucking Authority Requires Insurance [/h2]
[p] In order to get your authority the FMCSA requires you to provide proof of insurance that you have liability coverage. Your insurance agency will need to submit form BMC-91 which covers public liability in case of an accident causing injury or property damage.[/p]
[p]Remember DO NOT submit your proof of insurance directly to the FMCSA. The FMCSA requires that your insurance company submit the form and insurance certificate on your behalf.[/p]
[h2]Trucking Authority Cost [/h2]
[p]The tucking authority cost is a $300 filing fee that is associated with registering for the FMCSA URS. [/p]
[p]Before you start booking loads to haul, there are additional costs and fees. When you're ready, explore our detailed guide that is sure to help you <a href="https://truckerpath.com/blog/how-to-start-a-trucking-company/">start your own trucking company</a>.[/p]
[button-green href="https://truckerpath.com/blog/how-to-start-a-trucking-company/?utm_source=blog&utm_medium=authorityJuly27" width="250px"]How to Start a Trucking Company[/button-green]