How Can I Earn a Freight Broker License?

As a freight broker, you can work with both the makers and the transporters of goods. The federal government requires licensing to operate as a freight broker, which is a multi-step process. Read on to review the requirements for freight broker licensure. Schools offering Global Operations & Supply Chain Management degrees can also be found in these popular choices.

Licensure Process

Anyone wanting to operate as a freight broker within the U.S. and Canada must obtain operating authority through the Federal Motor Carrier Safety Administration (FMCSA) utilizing the Unified Registration System. To gain this operating authority, you are required to complete a multi-step application process through FMCSA to receive the operating license.

Important Facts About This Occupation

Median Salary $41,380 for all cargo and freight agents (2014)
Required Education High school diploma or G.E.D
Work Environment Within a freight transportation arrangement, or hub, dealing with supplies and support with air or water transportation
Key Skills Organization, oversight and scheduling abilities

Source: Bureau of Labor Statistics

Step One: Register with FMCSA

Filling out the URS form to register with the FMCSA is your first step. In addition to filling out an application, you need to pay a fee of $300 with your application submission.

Step Two: Receive Your Motor Carrier Number

After submitting your application, the FMCSA will grant you a Motor Carrier (MC) number. This number is needed to continue with the licensure process. It will take roughly 4-6 weeks for your application to process, and for you to receive the MC number.

Step Three: Provide Proof of Insurance Coverage

As a freight broker, you're required to have suitable insurance. You'll need to fill out either a BMC-84 or BMC-85 bond, using a Surety Bond or Trust Fund Agreement, respectively. The coverage should amount to $75,000.

Step Four: Designate a Process Agent

As a freight broker, you're required to designate a process agent for any state in which you intend to do business. A process agent is someone who represents your freight broker company and can receive court documents in case of legal action. This will require you filling out a BOC-3 form for proof of a process agent. Brokers also have the option of designating themselves as process agents.

Step Five: Obtain Your License

In this step, you receive your license. Once you have received your license of operating authority you can begin to do business as a freight broker.

Career Overview

Freight brokers communicate and negotiate with manufacturers and transportation companies. Within this profession, you are responsible for arranging the movement of goods from one place to another. Becoming a freight broker doesn't require you to complete any special education or training; however, you can find training programs that introduce you to freight logistics and broker laws and requirements, as well as shipper and carrier challenges.

Training programs are available through private organizations, as well as continuing education departments within colleges and universities. Degree programs in logistics management or supply chain management could also teach you about business logistics and transportation.

To continue researching, browse degree options below for course curriculum, prerequisites and financial aid information. Or, learn more about the subject by reading the related articles below:

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