The successful shipment process is possible with the help of a freight broker. With the increase in demand for shipment across the world, the demand for good freight brokers has also risen. The increase in demand and the lucrative potential of the freight brokerage business has forced many young people to join the freight brokerage business. If you are also looking for ways to become a freight broker, then you have landed at the right place. Here we will enlist some simple steps that will help you greatly to become a freight broker. But before we get into the nitty-gritty let’s first understand the role of a freight broker.
What is a freight broker?
A freight broker acts as a coordinator between a shipper and a freight service provider. Freight brokers help shippers to move freight from one point to the other. The first and the foremost important requirement to become a freight broker is FMCSA (Federal Motor Carrier Safety Administration) certification. Freight brokers are often called by the names of truck brokers, trucking brokers, logistics brokers, transportation brokers, and transportation brokers.
It is important to know that freight brokers should not be misunderstood as motor carriers and freight forwarders. It is because freight brokers don’t have the possession of freight them but they hire truckers or trucking companies to pick up and ship the freight for their clients.
Roles and Responsibilities of a Freight Broker
- Find the carriers
- Dispatching drivers
- Providing shipper freight quotes
- To invoice shippers
- To pay motor carriers
Steps to Become a Freight Broker
Given below are some easy and simple steps to follow that will help you become a freight broker.
Get trained as a Freight Broker or Freight Agent
Lack of experience in this field can hold you from becoming one of the successful freight brokers. An effective solution to this hurdle is gaining some fieldwork experience by getting yourself involved in some freight broker training. There are 3 ways to learn how you can become a freight broker:
- On the job training
- Live classroom training
- Online training
Pros and Cons of Different Kinds of Training
- On-the-job training — You have the opportunity to earn along with learning about every aspect of freight brokerage. On the downside, it is very time-consuming and has the least flexibility.
- Classroom freight broker training — It might be rendered as the best way to learn for those who like to learn from a teacher and that too with in-person interaction. The problem, however, is that it turns out to be very costly and also lacks scheduling flexibility.
- Online freight broker training — Apart from being the cheapest among the three, it also has the maximum flexibility as you can take it at your own pace.
It is important to analyze which training method would suit your requirements and according to that, you have to make the final decision.
Get your Freight Broker Authority or Freight Broker License
If you want to become a freight broker in the United States of America, then you will need to get your freight broker authority. This is by all means not a difficult process; rather it is a very simple process that can be completed by fulfilling these four steps.
Step 1 — Complete and file your FMCSA OP-1 Form.
Step 2 — Fill out and file your BOC- 3 Agent Processing Form.
Step 3 — Get your freight broker surety bond ( BMC — 84 bond) or your freight broker trust (BMC -85).
Step 4 — Finally, this is the last step where you have to Unified Carrier Registration (UCR)
During this application, you will also get a motor carrier number (MC) and USDOT number.
Find your Freight Broker Niche
Your options to choose your niche in the freight brokerage business aren’t limited, you have so many options to choose from. Therefore, you have the liberty to select that niche that will help you grow your freight brokerage business the most. Also, it is important to note that once you have become successful in a particular niche, you always have the option to expand to others.
Here are some of the steps that can help you make the decision about your niche in the freight brokerage business.
Equipment Type
This would mean that you have to work with vans and refrigerated trucks only. Also, you can also focus on vans, reefers, flatbeds, step decks, and any other form of a specialized type of trucking equipment.
Product Type
Here you can specialize on the basis of product types such as Steel, produce, gas and oil, bottled beverages, and many others.
Based on the Geographical Locations
You can also base your decision on the basis of geography, region, or even specific freight corridors and lanes
Hybrid Approach
This approach involves the amalgamation of the above three strategies. For example, it could be northeast outbound van freight. Etc.
Set up your Freight Broker Home Office
Unlike other shipping work, the work of a freight broker can be done remotely from anywhere. It provides freight brokers a good opportunity to work from home. They can maintain their office at home as they wish and make modifications according to that. You wouldn’t have to worry about the commuting expenses from office to home. Also, you get to spend a good time with your family.
Advantages of working from home as a freight broker
- More independence
- Less expenditure on travel
- Increased productivity
- More work flexibility
- Fewer office distractions
- Increased job satisfaction
- More work-life balance
- Work on your own hours
- More work-life balance
Partner with a Freight Broker Factoring Companies
Lack of funds can pose a big hurdle in your journey to becoming a successful freight broker. However, we have an effective solution to this problem. The solution includes partnering with your freight broker companies. OPM (Other people’s money) is a great relief for brokers with insufficient funds to open their independent freight brokerage business. Factoring companies provide help to such brokers by lending money in advance to pay carriers before they get any payment from shippers.
Start marketing and selling to shippers
Finally, after you have completed all the steps mentioned above, the last step is to start marketing your freight brokerage business. You start getting customers by using the following marketing methods:
- Cold Calling
- Social selling
- Referrals
- Online advertising
- Content marketing
- Trade shows
Since you would be starting a new business it would require some time to get acquainted with the marketing strategies that would suit your business the most. After that, you will have a clear picture of the strategy that you can deploy.
LGOA is one of the biggest global suppliers of transport solutions. We can provide solutions that can suit your requirements of shipping. You can also work with us as a logistics service partner. We ensure that you get safe and secure shipping services. If you need any assistance regarding freight shipment, feel free to contact us. We will devise the best shipping practices that will be compatible with your shipping requirements.
