One of the steps in getting a license is to find out how to structure the brokerage company. In sum, this can cost you USD$300 for one category or double that amount, or USD$600, for two categories.
This is perhaps the most challenging part of obtaining a license. Most applicants are unaware that they need to raise a surety bond worth USD$75,000, as part of the application process. Wait for at least one year to develop an understanding of the sector instead of filing an application right away. Without these critical sets of information, a freight broker planning to obtain a license may find the undertaking an uphill battle. Training also includes other freight-company-specific information.Įach program aims to provide an enrollee with enough knowledge to operate their own brokerage firm. So are the essential components, such as marketing your services and growing your business. Lectures on the requirements of the freight industry, especially when it comes to licenses, operations, and regulations, are often discussed. While some things can be learned by gaining actual experience, it’s better for an aspiring freight broker to gain basic knowledge of how the sector works.Ī training program is beneficial for those who have no prior experience in the sector. Thus, anyone who wants to get authorization to practice freight brokerage may get the wrong impression it’s just an easy job, only to find out later on that such isn’t the case. Misleading ‘No-Training’ Requirementįormal education isn’t one of the requirements for getting a freight broker’s license. There are potential challenges you may need to face, including the following. Same with a prime broker account, but once you got it, you can make big progress. Getting a license as a freight broker may not be that easy. The freight brokerage sector is regulated by the federal government through the Federal Motor Carrier Safety Administration (FMCSA). In the United States, the market is estimated to be at USD$1.164 billion in 2020, with a projected compound annual growth rate of 36.2% from 2021 to 2028. The freight brokerage industry is a high-value sector. What Challenges May Freight Brokers Face When Getting a License? And freight brokers are tapped by these businesses to address their needs.Īs the link between organizations with shipping needs and the authorized shippers themselves, licensed freight brokers can start working even if they don’t have a capital-intensive logistics or carrier business. What Does a Freight Broker Do?Īlmost every business organization requires freight forwarders in order to grow and move their business. Understand how freight brokers work and find out the challenges you’re likely to face if you’re planning to get a freight broker license.
Shippers hire freight brokers to haul their goods from one point to another, but the latter doesn’t do the hauling by themselves.Īs a regulated practice, getting a freight broker’s license can become complicated and confusing, but they come with immeasurable benefits. 5 Challenges of Getting Freight Brokers LicenseĪs a licensed freight broker, you’d be tasked to act as a middle person connecting shippers with various carriers. A freight broker license is necessary for anyone who’s planning to get into the business of hauling and transporting products.
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