How Do Freight Broker And Dispatcher Get A License In California?

The trucking industry needs a dynamic workforce to operate the endless number of moving parts it contends with daily. Freight broker and dispatcher plays a crucial role within your fleet. They can assist bridge the gap between customers, drivers, and owner-operators in scaling and managing your fleet. They scout load boards, discovering opportunities with various shippers that have similar business requirements. Their efforts assist to build a steady customer base for smaller fleets. They help trucking companies streamline their operations and manage seamless customer experiences. 

What do you mean by freight dispatcher?

Freight dispatcher supports a variety of business functions for a trucking company. Because most job opportunity descriptions are a mix of support, operations, and customer service tasks. Depending on the company, dispatchers also work on back-end operations such as billing, and compliance. Now the question arises how to be a freight dispatcher? One need to follow these steps to be a freight dispatcher such as –

. Need to complete all required education and training

To be a freight dispatcher one needs to hold a high school diploma or GED. Apart from this, one needs to consider taking a truck dispatching course that can introduce you to the industry and teach you valuable skills for success. For instance, there is available online truck dispatching training courses that can prepare you for your career. 

. Need to consider an associate’s degree

An associate degree may not be a requirement, but most companies prefer candidates who have an associate’s degree in logistics, transportation, or another related field. This can also give you a competitive edge over other candidates, as you can use your associate’s degree as a stepping stone toward a bachelor’s degree. 

. Gaining experience in the industry

You can gain industry experience by working on the role related to trucking, freight hauling, and shipping and receiving. You need also to spend some time learning your local, state, and federal laws governing freight transportation, weight limits, and safety regulations. Doing this can benefit you to get familiarized with the necessary information, which is effective for handling scheduling and freight issues.

. Developing your skills

One needs to keep developing their skills in telecommunications, written communications, and interacting with others. The role of freight broker and dispatcher relies heavily on attention to detail and organization but mostly on your communication. You need to develop a method for keeping records, documenting phone calls, and keeping schedules organized. Apart from these soft skills, it is helpful to develop your understanding of dispatching and telecommunication equipment you will likely use on the job. 

How one can get the broker dispatcher license?

To get a broker dispatcher license one need to follow these steps such as –

. Establishing a business structure

The first step to becoming licensed is for an applicant is to determine how they want their company to be structured. It is highly advisable to consult with an attorney or accountant when making this decision, as they can weigh the positives and negatives of various business structures with the licensee. Whether or not an applicant decides a consultation is mandatory, they will ultimately need to decide on one of the following three structures for their broker dispatcher license such as:

  • . Individual/Sole Proprietor
  • . Partnership
  • Corporation
. Submitting an OP-1 Form

Once your business structure has been established, you will now need to obtain a motor carrier number by endeavoring the FMCSA with a completed OP-1 form. This is the initial application form that the applicant needs to submit to the FMCSA, which may include general basic information about the business such as company type, name, address, type of operating authority, etc.). Under Section III for Type of Operating Authority on the application Form OP-1. The applicant needs to either select “Broker of Household Goods” or “Broker of Property”. Apart from this, the applicant will also need to submit the application fee of $300 for each type of license they are applying for. 

. Getting a surety bond (i.e. BMC-84)

Of all of these steps, the surety bond requirement is oftentimes the most difficult. Many applicants are unfamiliar with surety bonds before learning they need one to become licensed. Additionally, the federal freight broker bond is also harder to get than any other bond type. Approval for the surety bond is based on the individual applicant’s background among various other factors as there is a higher degree of risk analogous with the freight brokerage industry

. Selecting the process agent

The FMCSA defines a process agent as a representative on which the court papers may be apportioned in any proceeding consort against a motor carrier, broker, or freight forwarder. To comply with 49 CFR 366, every licensed freight broker is recommended to baptize a process agent in each state in which it has an office and writes contracts. Once freight broker received motor carrier number. They may appoint various process agents or they may opt to work with a company beneficence blanket coverage. Because this coverage acquiesces one person to act as a process agent in various states.

. Registering with the brokerage

The final step in the licensing process behooves all freight brokers to take part in the Unified Carrier Registration. This is an agreement developed under the Unified Carrier Registration Plan. This agreement governs the collection and distribution of registration and financial responsibility information provided and fees paid by brokers. Because it establishes rules and regulations for all freight brokers including fees that must be paid to the freight broker’s base-state, or the state where their main office is stationed. 

Difference between freight broker and dispatcher?

The major difference between freight broker and dispatcher is such as –

Freight brokers work with both shippers and carriers but do not embody either one. On the other hand, the dispatcher represents only the carrier when negotiating freight. A dispatcher may not deal directly with shippers on their behalf. They must act as the delineative of the trucking company or owner-operator.

Wrapping Up:-

This is how freight broker and dispatcher may get a license in California. If you still face any difficulty in getting a license. You are free to contact LGOA one of the leading logistic service providers in California. They will definitely help you in getting your license.

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