Freight brokers are filling in a crucial role in the movement of freight as the missing link between shippers and carriers. They negotiate good shipping rates deliveries from transportation companies and connect them with the businesses that need to transport goods or cargo.
Brokers are the ones who make sure that each step of the transportation process occurs, so that the freight arrives safely to its destination. To become freight broker for trucking and transportation means to take responsibility for a vital part of the shipping process.
What one need to become freight broker
- Gain industry experience and study
Refresh or develop some general skills
While brokering freight does require knowledge and experience in the field, there is nothing you cannot gain with practice and diligence
Take freight broker training
Besides the general skills you need to refresh or develop, you might want to attend a freight broker school in order to get fully prepared for actual requirements of the brokering job.
Choose a company name and register your business
In order to legally operate a brokerage, you will also have to choose a company name and register business.
Develop a business plan
A solid business plan is very important since one will apply it for a line of credit with your bank but even more than that, your business plan is also an exercise in specifying which niche you will be targeting and who your customer are.
Find the right carriers
The marketing strategy should include finding the carriers which work in the field of operations you have chosen for yourself.
Apply for a USDOT number and get your broker authority
Before you start operating in the field, you need to get a freight broker licence from the Federal Motor Carrier Safety Administration. The licensing is also referred to as obtaining your Motor Carrier Operating Authority.
Get a freight broker bond
The purpose of the freight broker bond is to guarantee that you follow all applicable rules and regulations in your brokering.
Obtain contingent cargo insurance and general liability
With your MC number you can go ahead with getting insurance and your surety bond.
Designate agents for service of process
Once you have obtained your bond and insurance, you are now ready to choose your process agents for each state you do business in.
Get your equipment
When it comes to material assets you need to start a brokerage, there are a few things to consider. The essential technical gear that you need at first includes a computer, printer, copy and fax machine, landline phone and mobile one, some office supplies.
Get enough initial operational capital
Once you have settled your business plan and gotten a line of credit, you are on safe side financially and you will be able to start brokering for success.
Market your business
The final bit you need to cover is how you will market your brokerage to potential clients. Here you can think about what will make you stand out and how you can get your message across best.
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