Not every manufacturer has their own fleet of trucks and drivers, which can sometimes make it difficult to get their products where they need to be. This is why they need brokers to match them up with trucks that have space for an extra load. Becoming a freight broker is not difficult but it is important to follow all of the steps carefully.
In order to become a licensed freight broker, it is necessary to register with the Federal Motor Carrier Safety Administration. Initially, brokers should complete the OP-1 application and pay the three hundred dollar registration fee. This process must be completed before they can continue with their application for the license.
Another thing that all new brokers need is an insurance policy for their company. In most cases, it is best to take out a policy for at least ten thousand dollars. It is also possible to post a bond for that amount, but every new broker should discuss their options with an insurance agent and shop for the best policy prior to making a decision.
After they are registered and have obtained insurance, freight brokers are free to complete their application for a broker’s license. Along with the completed paperwork, they must also submit proof of their insurance. In about six weeks, most new brokers receive an approved application and are free to do business as freight brokers. However, incomplete paperwork or insufficient insurance could hold up the process.
Although obtaining the license is not difficult, there are many little ins and outs of the freight broker business with which they need to become familiar. Someone who is new to the business may want to consider taking a course that will prepare them for their career change. There are courses available in most cities as well as several convenient online options to make the transition as smooth as possible.
People who get into the business of becoming this type of broker will most likely be successful because there are always companies that will need their services. However, before they can legitimately go into business, they must obtain a license from the Federal Motor Carrier Safety Administration. If they fill out all of the paperwork properly and obtain the proper insurance, they should be licensed and ready to get to work in about six weeks. If they still have questions about the business, it may be a good idea to take an introductory course.