As the logistics of scheduling shipment pickups and drop-offs and searching for clients who need loads transported can be a time-consuming operation. Due to this many trucking companies and manufacturers turn to transportation brokers (also known as freight brokers) to handle scheduling and billing functions for them. These brokers rely on their connections on both sides of the industry and their communicational and organizational skills to adequately arrange transportation brokers near me.
Although brokers need to meet Federal Motor Carrier Safety Administration licensing requirements, little less is mandatory to launch brokerage transportation. Now the question arises what is brokerage transportation? A freight broker act as a middleman between shippers and carriers. Instead of taking possession of the freight, the broker expedites communication between the shipper and the carrier. They are the ones making sure that the handoff goes evenly between carriers and shippers. And that freight arrives safely on time.
What does a transportation broker do?
Now the question arises what does a transportation broker do? Transportation brokers expedite communication between the shipper who has goods to transport and the carrier who can move the load. Many of the shippers in the US have direct contracts with trucking companies to transport their goods. Using a freight broker to give shippers more flexibility. This may assist their shipments and help them save money.
How one can get a transportation broker license?
Besides making good money, transportation brokers are indispensable when it comes to transporting goods and cargo. If you are wondering how to get transportation broker license.Here are some of the steps by the benefit of which one can get the transportation broker license such as –
. Obtaining operating authority
The first step in obtaining a transportation broker license 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 license. Apart from all this, you need to obtain insurance coverage as required by the FMCSA. Transport brokers need to obtain a surety bond or trust fund agreement up to $10,000 in coverage to receive a license. Once you are bonded, your insurer administers proof of insurance essential to obtaining your license.
. Submitting the form
Once you obtain operating authority. Now you need to obtain a motor carrier number by submitting a Form OP-1 to the FMCSA to receive operating authority as a broker of property and household goods. You need to submit some basic information such as your business name and address etc. in the form. Applicants also need to submit a $300 application fee each time they are applying for the license. Check out the box next to each type of authority you wish to receive, either broker of property or household goods. You can receive authority to broker both types of goods, but at an additional fee. One can get the motor carrier number in the time of 10 days.
. Providing any prior relationship if any
You need to disclose any prior relationships you held with FMCSA i.e. licensed organizations in the space provided in the OP-1 form. Sign in the application form and include a $300 processing fee for each type of operating authority you wish to receive.
. Selecting a process agent
The FMCSA defines a process agent as a representative upon whom the court papers may be furnishedduring any proceeding brought against a motor carrier, broker, or freight forwarder. To comply with 49 CFR 366, every licensed freight broker is required to baptize a process agent in each state in which it has an office and writes contracts. Once you have received your motor carrier number. Freight brokers may appoint various process agents or they may opt to work with a company offering blanket coverage. This coverage acquiesces one person to act as a process agent in various states. Regardless of how many process agents you appoint.The freight broker or designated process agent on behalf of the freight broker needs to complete Form BOC-3 and submit it to the FMCSA.
. Registering the brokerage
The final step in the freight Brokers license process requires all freight brokers to take part in the Unified Carrier Registration. One can develop this agreement under the Unified Carrier Registration plan. This agreement administers the collection and distribution of registration and financial responsibility information endeavored and fees paid by various brokers. This establishes the rules and regulations for all freight brokers, such as fees that must be paid to the freight broker’s base state, or the state where their main office is stationed.
Wrapping Up for Transportation brokers near me:-
To become part of the exciting freight logistics, and transportation industries one needs to get a transportation broker license first. So if you searching for transportation brokers near me. You can contact LGOA one of the recognized transportation brokers in California.