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All You Need To Know Before Becoming A Freight Broker!

All You Need To Know Before Becoming A Freight Broker - MAZE Consultancy

 

The transportation industry is a behemoth that depends on several different sectors functioning in tandem. Shippers, Carriers, Freight brokers, and several other professionals work tirelessly to ensure the economy stays running. 

As consumerism increases, the need for delivering products faster and in bulk is growing exponentially, fueling growth in the transportation industry. 

Because of this steady growth, the demand for Freight brokers in the sector has risen over the last few years as they are the connectors that weave shippers and carriers together, ensuring the industry remains on the right track. 

At Maze Consultancy, we provide FAST Certifications (CTPAT, PIP, CSA for Shippers, Importers and Carriers) and training for Truck Dispatchers and Freight Brokers; to ensure that companies and their employees reach their full potential. One of our most popular services that we provide is setting up Freight brokerage companies for individuals who want to enter the Logistics industry. 

Due to our line of work, we often face questions like “how long does it take to become a Freight broker, and how much money does it take to become one?” 

So we decided to answer these burning questions here today. In the following, you will find everything you need to know about becoming a Freight broker. 

We will cover everything from how to build credit as a Freight broker and explain all the other aspects of the job, so without any further delay, let’s check them out!

 

How To Become A Freight Broker or Setup a Freight Brokerage company?

Becoming a Freight broker entails a wide range of responsibilities like working on attracting new customers and sourcing out the right people to work with. 

They also need to be able to schedule orders with carriers correctly to ensure there’s no delay in delivery. The main goal of the Freight broker is to provide the shippers with the right transportation services to transport goods. 

Freight brokers earn, on average, 65000 to 75000 dollars, with the highest salaries reaching over a hundred thousand once you gain experience in the industry. It’s a great career option. 

To setup a Freight brokerage company, you must complete several steps. Here are the steps you need to follow :

  • Complete the Freight broker training course.
  • Preparing the business plan and registering your business.
  • Sourcing good carriers.
  • Meeting the required licensing requirements.
  • Getting a Freight broker bond. 
  • Filing for a BOC-3.
  • The final step is developing a marketing strategy.

 

How Long Does It Take To Become A Freight Broker or Setup a Freight Brokerage company?

 

How Long Does It Take To Become A Freight Broker - MAZE Consultancy

 

If you want to work for  a Freight Brokerage company as an agent then all you need is attend a Freight Broker Training Course. The courses usually take anything from one week to two weeks. Once certified you can start working for a Freight Brokerage company as an agent. 

Incase your plan is to setup your own Freight Brokerage Company then you need to complete the Freight Broker Training course and also get all the Permits and Bond mentioned earlier. This should take you around 30 to 45 days.

 

How Much Money Do You Need To Become A Freight broker?

Becoming a Freight broker entails few expenses. While the overall costs may vary from person to person, there are some standardized costs of setting up a Freight brokerage operation. These are listed in the following:

  • License and registration is the first cost you will encounter which can be in the range of approximately 1000 dollar. 
  • The next expense you will have is a surety bond expense. You will need to get a Freight broker bond for the amount of 75000 dollar which can cost you 4000 to 5000 dollar per year. Its purpose is to provide some financial security while also working as a deterrent to misconduct.
  • The final cost of becoming a Freight broker is for business and office equipment. It can range anywhere from 500 to 2000 dollars depending on if you plan to work from home or take an office space.

So be sure to contact MAZE Consultancy to find out more specific costs related to setting up a Freight Brokerage Company.

 

How To Build Credit As A Freight Broker?

A successful Freight broker is one with the best relationships. It is a sector based on maintaining, nurturing, and cultivating relationships on both ends of the chain. They have to negotiate and manage everything by connecting shippers to carriers so that everything can be delivered quickly. 

In the transport business, time is money. Every trucking company does its due diligence on Freight brokers to see if they have a good credit history in the market before working with them. 

They will look at everything from how you conduct your business to your professionalism and exposure, reviews, licensing/bonding, and financial credibility. 

Verifying the credibility of a Freight broker is vital to the trucking company as they get paid after the completion of the job. A Freight Broker takes an average 30 days to pay the Trucking Company. 

That’s why building up credibility as a Freight broker is vital to success in the field. So how do you build credit as a Freight broker? 

Well, primarily by ensuring top-notch service and being a shining example of professionalism. However, there are some other factors at play here too. Here are some of the ways you can build credit as a Freight broker:

  • Make sure you have an excellent website for your operation.
  • Make sure you have a noticeable online presence.
  • Ensuring top-notch customer service is a must in the field. Make sure you provide timely responses to customers.
  • Make timely payments consistently. 
  • Be transparent about everything.
  • Make sure to have clean and excellent business and personal credit profiles.
  • Finally, always keep monitoring credit reports for information that may hurt relationships.

If you follow these steps, then you are guaranteed to succeed as a Freight broker. However, remember that it is a regulated sector, and you must be able to cope with the demands of the industry before you get into it. So talk to experts like MAZE Consultancy before diving into becoming a Freight broker.

 

Freight Brokerage As A Viable Career Option

So there you go, that’s about all the things you need to know about Freight brokering before diving into the sector. Hopefully, you know how much money it takes to become one and how to build up your credit as a Freight broker. 

As you can see, it is a viable career option for almost anyone as it doesn’t take long to become one. Now, if you have any more questions about Freight brokers or our services, feel free to drop them in the comments below or connect with us via our website MAZE Consultancy

And with that being said, that’s about all we have for you today. We will come back with something new for you soon. Until then, see ya!

 

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