Becoming a truck broker can be a lucrative opportunity that allows one to work from your home or close to home instead of traveling the road delivering freight. Truck brokering refers to the maximization of money that is made from freight hauling and it is done by negotiating between trucking companies and cargo hauling and other types of freight companies. It is helpful that one has a background in the industry of trucking because it ensures one has the the experience to become a truck broker.
The brokers in this kind of business serve as the connection between the carriers and the shippers. They do the negotiation with regards to the shipping rates as well as fast deliveries from the transportation companies.
The role of truck brokers is important because they make sure that every step of the process of transportation takes place and that the freight will be able to arrive to its final destination safely and in a timely manner.
You can consider the following steps to become a truck broker:
- Have industry experience and study – it is vital to have the strong will to learn about brokering freight. You must acquire the mathematical skills and analysis as this will be needed daily for the operation. You should have good communication skills as you will be required to work with people over the phone or even email especially when you negotiate and close deals. Moreover, a freight broker school can help for the preparation of the requirements for a brokering job. Books can be of use for reference.
- Select a name for the company and then register the business – this is vital so that the brokerage operation is legal. You may consider checking the patency of the name for your business at the US Patent and Trademark Office. As part of the registration, you will need to choose the kind of entity you wish to register whether as a sole proprietor, partnership, corporation, or limited liability company. Be certain that you register the business in your state at the local business license department.
- Development of business plan – it will help in preparing a line of credit that will aid with the investment needed for the business.
- Have a freight broker bond – this gives the guarantee that you are following the rules and regulations of brokering.
- Look for the right carriers – search for carries working on the same field as you have. They must be trusted, reliable, and are professional.
- Apply for USDOT Number and get a broker authority – it is essential to have the freight broker license from Federal Motor Carrier Safety Administration. Getting the USDOT number is the initial step needed for the application form and then have the one-time application fee payment.
- Get a contingent cargo insurance as well as general liability insurance
- Assign agents for the service of process
- Obtain the equipment – to start with, you will need a computer, printer, copier, and fax machine. You will also need a landline phone, mobile phone, office supplies, and good internet connection. The freight brokering software is also a consideration as it boosts productivity.
- Once you have the license, and equipment in place you can reach out to shipping companies to gain connections to start building your business.
You can learn more about getting a freight broker’s license to become a truck broker at the Federal Motor Carrier Safety Administration (FMCSA).