A successful freight broker is a highly paid job; however a little cost incurs from your pocket to establish yourself as a freight broker. As a freight broker the job responsibilities will to match the shipper’s requirement with the carrier company. The person looking for owner operator jobs can get the assignments from the freight brokers to start of their business.
To become a freight broker you need to undergo following steps:
1. Legal Procedures to become a registered Freight Broker:
• Broker’s Authority: In United States Broker Authority is given by Federal Motor Carrier Safety Administration (FMCSA). FMCSA is the division of Department of Transportation here and is an authorized body to issue broker license. In order to get the license one has to fill the form OP-1 which is an essential step to own a broker license. This step costs $300 to an individual.
• Surety Bonds: Any prospective Freight broker will have to purchase these financial instruments worth $10,000. This trust fund or bonds acts a security deposit which can be put to use in case you brokerage services incur any losses to the parties involved.
• Processing agent: This procedure requires you to select one processing agent in the country of your business operation. This role of the processing agent arises in case of any legal disputes. To appoint one such agent you need to fill in the form BOC-3. The form fee is $50.
2. Freight Broker Training:
• To become a successful freight broker you should know the trucking industry and its requirements well. You should be well versed how the trucking companies work. What are the different trucks types and when should one use the specific trucks meant for the purpose? The broker should work in the close liaison with different truck drivers such as flatbed drivers, reefer drivers and hotshot drivers so that the loads available are efficiently trucked.
• If a person is new to the industry and want to start his business as a freight broker then he can enroll himself with many freight broker programs run throughout. The programs will help you build the necessary skills and knowledge required to start off as a freight broker
3. Business Setup:
Now that you have undergone the legal procedures and have got enough information on the industry, you will require a business setup to start off. For this the minimum requirement will be one computer with internet connection as most of the deals these days are finalized online by using the latest innovation in the field freight load boards. Then, you need a telephone and fax lines to fasten up the deals and fast communication with the clients and the truck drivers. To accomplish smooth and controlled processing you need to buy efficient broker software.
Here you are completely ready to start off with your profitable freight brokering business. For people who do not have sufficient funds at hand to make initial investments, they can start their work under any registered freight broker as an agent. In this case no start up cost will be incurred and you will get the exposure in the industry before you have enough funds to start on your own.
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