Jul 19, 2017 • Brokers

Freight Broker License

Freight Broker License

Learn how to get a freight broker license and move freight in a few easy steps.

Freight Broker License

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.

Freight Broker License Cost

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.

Broker Authority

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.

Guide to Become a Freight Broker

TagsFreight Broker

What is a Freight Broker? [p]Have you wondered what is a freight broker? A freight broker is someone who assists shippers with freight ready to haul by finding carriers to haul a load.[/p] [h2]What is a Freight Broker?[/h2] [p] Freight brokers can run their own business or work for a freight broker company. They are responsible for arranging the transportation and tracking of a load hauled by a freight carrier.[/p] [p]Freight brokers make it easier for shippers to find quality carriers that are proven to be reliable in hauling a load as instructed. Meanwhile, freight brokers help motor carriers potentially earn more by having readily available loads to haul. [/p] [p]The responsibilities of a freight broker are not limited to connecting carriers with shippers. They must communicate with both parties it represents as well as track the load and verify it's pickup and delivery. [/p] [h2]How Do Freight Brokers Make Money?[/h2] [p]A freight broker earns money by moving freight for less than his customer is willing to pay to ship the freight. This difference creates a profit for the freight broker known as the spread. They are paid x amount by a client to find a carrier to haul a load which they pay for y amount. The difference is what the freight broker earns. [/p] [h2] Freight Broker Salary[/h2] [p]A freight broker salary has a national average of $41,952 annually according to PayScale. Keep in mind this is a base salary average without any of the commission or bonus included.[/p] [p]Location will also play a tremendous factor in dictating freight broker salary. A freight broker in Dallas earns an average base salary of $55,000 where a freight broker in Kansas City earns $45,000. Freight brokers can earn upwards of $75,000 or more annually when the commission is added and that number can increase dramatically if you operate your own freight broker company. [/p] [h2] Broker Load Boards - How Brokers Find Freight Carriers[/h2] [p]Freight brokers looking to move freight need to find motor carriers who are available to haul a load. Broker load boards are used by freight brokers to connect with the desired freight carrier and are one of the easiest way to network and build a carrier base. [/p] [p]Using a load board such as Truckloads, freight brokers can quickly find qualified carriers who may be interested in hauling a load by posting the load details onto a load board and then contacting motor carriers who may be interested in the load. Time is money and the more loads a freight broker can move, the more they can earn, placing a premium on the use of load boards. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=freightbroker&utm_campaign=july5"]Try Truckloads for Free[/button-green] [video id="o_tsuJHWayo"]

Jul 05, 2017 • Brokers

Industry Update - March 1, 2019 <h4>By Jeremy Feucht</h4> <h3></h3> <h3><strong><u>Did you Know?</u></strong></h3> An engine in a semi is designed to run 24/7 for 1,000,000 miles before needing to be completely rebuilt. <h3></h3> <h3><strong><u>Trucking tip of the Week</u></strong></h3> In the cold weather, increasing the air pressure in your tires is a good idea. This helps ensure that cold air does not affect the safety of your tires. In cold weather, air molecules huddle together thus reducing pressure. Be careful though not to over inflate your tires as it makes for an incredibly rough ride and reduces your control over the vehicle. <h3></h3> <h3><strong><u>Weather</u></strong></h3> Good portions of the west and mid-west saw record breaking snow fall for the month of February. This snow fall shut down portions of highways through Washington, Oregon and Idaho in particular. However, these states have not called for Declarations of Emergency because it only affects a portion of the state. Montana, North Dakota, South Dakota, Minnesota and Wisconsin, however, have all declared a <a href="https://www.fmcsa.dot.gov/emergency-declarations">State of Emergency</a> due to a lack of fuel, heating oil and propane for its citizens because of the continued poor weather across their entire state. Propane carriers are usually exempted from hours of service rules this time of year anyway, but fuel haulers will now be granted this exemption until the middle of March. <h3></h3> <h3><strong><u>Legislation</u></strong></h3> The age restriction for interstate driving may change 21 to 18. In a rare move of bipartisanship in both the US House and US Senate, a piece of legislation called the “<a href="https://www.young.senate.gov/imo/media/doc/DRIVE-Safe%20Act%20FINAL%20Draft.pdf">DRIVE Safe Act</a>” looks like it will be pushed through. The act itself does not simply opening the doors for those that are 18 to immediately go long haul, but that does not make it any less controversial. While it is endorsed heavily by the ATA to slow the increasing driver shortage, it still allows younger people, with significantly less driving experience, to drive dangerous vehicles. The legislation would require those under 21 to log significant hours both on duty and behind the wheel as an apprentice before being able to do so on their own. This is the same bill that was introduced in March of last year but has more backing this go around. <h3></h3> <h3><strong><u>I</u></strong><strong><u>ntermodal and Trucking at Odds</u></strong></h3> Lobbyists for the intermodal transportation entities had a chance to have their voices heard this week in DC. Looking to head off the desire for bigger and heavier trucks hitting the roadways, rail and waterway experts were called upon for a <a href="http://www.landlinemag.com/Story.aspx?StoryID=73829#.XHl43vZFw2x">hearing with the US Senate Transportation and Safety subcommittee</a>. Members of the Senate subcommittee though did press back on some of the strategies that ocean liners are beginning to practice using such as “street turns.” A street turn is using the empty container that was picked up at port and using it to haul a load back towards, or even back to, the port.

Mar 01, 2019 • Carriers

How to Become an Owner Operator [p]To become an owner operator and be your own boss requires several necessary steps and tips which you can follow our guide.[/p] [h2]How to Become an Owner Operator[/h2] [p]Creating a work schedule that fits your lifestyle, deciding when to take time off and the potential for greater earnings are all reasons why you might want to become an owner operator.[/p] [p]Becoming an owner operator is a journey that seems complicated and endless; however, it is within reach. First, off it would be best if you already had several years of experience as a truck driver. The experience of being a company driver can be beneficial for you to understand the ins and outs of the industry and operating your own trucking company. Follow these steps to help get you started on the [a href="http://m.onelink.me/cceb1f59"]path[/a] to your trucking dream.[/p] [h2]File For a USDOT and MC Number[/h2] [p]The first thing to you will need to become an owner operator is to have a registered USDOT number as well as a [a href="https://cms.fmcsa.dot.gov/registration/get-mc-number-authority-operate"]Motor Carrier (MC) number[/a] which provides you the authority to operate. There is a one-time $300 federal filing fee to request an MC number with the FMCSA. If you've ALREADY registered for a USDOT number then you can [a href="http://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_option"]request an MC number online here[/a].[/p] [h2]What are the Different Types of Trucking Authority?[/h2] [p]<a href="https://truckerpath.com/blog/trucking-authority/">Trucking authority for carriers</a> is categorized into common or contract. A common carrier is available for hire by a shipper or broker. A contract carrier is contracted to haul loads for a specific company and are not available to the general public for hire.[/p] [h2]Truck Insurance[/h2] [p]Having insurance is not just an enforced federal law, it's intended to protect you as an owner-operator from risking your assets and liability in the event of an unexpected situation. The FMCSA requires certain types of insurance coverage depending on the authority you choose and the goods you plan to haul. For example, hazardous freight or freight requiring a hazmat permit will require specific liability coverage that differs from household goods. You can [a href="https://cms.fmcsa.dot.gov/registration/insurance-requirements"] find the various forms and requirements of the FMCSA here[/a].[/p] [h2]To Be or to Lease a Truck? That is the Question[/h2] [p]Deciding if you should lease or purchase a truck has much to do with your available assets. A used heavy duty truck in decent shape can cost over $60,000 and run upwards of $100,000. However, if you are considering to lease a truck from a trucking company, then you can look into the possibility for a lease-to-own truck purchasing option. Choosing to lease a truck can save you on the biggest upfront cost to become an owner-operator. Keep in mind that if you <a href="https://truckerpath.com/blog/lease-purchase-trucking/">choose to lease from a company</a>, typically you're expected to haul for them as well (there are some exceptions).[/p] [h2]Using Load Boards to Find Truck Freight[/h2] [p]Streamlining how you find truck loads can generate the most potential for your newfound position as an owner operator. [a href="http://m.onelink.me/58720b7e"]Truckloads[/a] is a free load board available on the web as well as on mobile devices (iOS and Android),providing you with over three million monthly loads to search through wherever you are. Not to mention access to unlimited premium loads and the ability to view a brokers credit score, days to pay and contact them right from the app.[/p] [p] Learn more about <a href="https://truckerpath.com/blog/types-of-truck-freight/">truck freight</a> and the opportunity to maximize your earning potential![/p] [video id="snyBYpnuhWw"] [h2]Becoming an Owner Operator is a Process[/h2] [p]Starting your own company requires cash upfront to cover your operational costs and includes the payment of fees, taxes and any potential repairs. The process of becoming an owner operator is tedious and can take over a month before you even earn the authority by the FMCSA. Nonetheless, the chance to become an owner operator can pay off and allow you unlimited earning potential.[/p] [p]Taking advantage of the opportunity to become an owner operator could have a lasting impact on your career and personal life. Not every option will be the best fit for you and your family. Instead, you must review your situation before making any decision to becoming a leased or independent owner operator. Once You have become an owner operator and have your own authority, you can begin to search for loads to haul by using load boards like Truckloads.[/p] [button-green href="https://truckloads.truckerpath.com/?utm_source=blog&utm_medium=becomeanownerop&utm_campaign=July3"]Try Truckloads for Free![/button-green]

Jun 19, 2017 • Carriers