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How To Start Your Own Freight Broker Company?

Freight brokerage is a rapidly growing service-based industry. As a freight broker or agent, you need to connect with various shippers and manufacturers with transportation companies and need to administer those shipments. Starting a freight broker company does not require a lengthy college degree, extensive training, or a big financial investment. What you earn as a freight broker and your success in getting and keeping clients is highly reliant on the effort you put into the job, even more so if you are planning to start your own freight broker company.

How you can start a freight broker company? 

Freight brokerage is a highly distinguished career option that one can choose as a career option. Now the question arises, how to start a freight broker company? To start this, one needs to follow certain steps such as –

. Learn more about the freight brokering

The first step you need to learn in this is what a freight broker does. As is described above, it is not necessary to have a degree or even formal education, you will be off to a much better start if you get some type of education. You need to do research and read up about freight brokering or need to look into a short online or local training program for learning what freight brokers do.

. Getting your freight brokerage license

The US Department of Transportation mandates that freight brokers need to get licensed through the Federal Motor Carrier Safety Administration. It is not necessary to have any kind of degree or diploma to get a license, simply apply for the license, pay the license fee of $300 and purchase a surety bond. After doing all this, one can get the broker license in the time frame of 7-10 days.

. Getting bond and insured

Liability insurance and surety bond are necessary for protecting your assets in this logistic industry. Moving goods can be uncertain, and even for the outstanding freight brokers, things can go wrong. You need to have a $75,000 surety bond, which safeguards that you can cover any amount you owe clients when contracts are not completed on time. Liability insurance is not mandatory but this can safeguard you in the event of any unforeseen issues that cost money.

. Registering your business

You need to have an idea in your mind about the business you need to start i.e. whether you want to start your business as a sole proprietorship or a limited liability company. Your state government should endeavor you the options and applications for registering your freight broker company.

. Setting up your logistic office

With all these above details completed, now you are ready to set up and start working in an office. If you are starting small as a single-member business, all you require is a home office. Be sure that you have a designated space where you can focus and be free from any kind of disturbance. Apart from all these, you need to have a computer with good internet access and a phone at least. In some cases, a fax machine may also be useful in working with some clients.

. Need to be a bit careful about your records

As now you are ready to start working and doing business, be sure to stay formulated and keep a record of everything. You need to keep a record of each transaction such as contracts invoices, lists of goods to be shipped, information about various shippers and carriers. Apart from this, you need to set up a system of billing and receiving payments so that no transactions get lost and you get paid for every job you finish.

. Developing relationships with various shippers and logistic carriers

The heart of any freight brokering business is connecting with various shippers and logistic carriers. Your first step in this job will be to contact and establish strong relationships with companies in need of freight brokers for their services i.e. the shippers and those who afford with work i.e. the carriers. Take time early on to associate with these companies so that you will have clients and carriers you can rely on for your future endeavor.

. Need to hire various real estate agents or other brokers

As you will get busy engaging with various clients and transactions. So, you need to think about hiring new employees. You can hire various real estate agents or other brokers. Hiring others to work for your freight broker company can benefit you to concentrate on business and to flourish your business. 

How much can the freight broker company make?

How much does a freight broker company make may depend upon the capabilities of the employees working in their company and their commitment. The salaries of various freight brokers can range from $60,000 to $90,000 a year, depending on the employee’s reputation, adding that his “higher end” brokerage pays between $80,000 and $85,000 annually.

List of highest paying freight brokers

Some of the highest paying freight brokers are such as –

  • Test Drive
  • Sureway
  • Echo 
  • JB Hunt
  • CH Robinson
  • Fast more
  • GSA Transportation

Wrapping Up:-

Starting a freight broker company is an existing career step that one can take. This is a fast-paced career, partly because your earnings are determined by your efforts. You truly earn what you put into this logistic career. So take your time building your logistic company and learning so that you can be successful in the long run.

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