Truck brokering maximizes the money made in freight hauling by allowing trucking companies to negotiate cargo hauling with other freight companies. Truck brokerage software makes this process easy. Any owner interested in expanding his or her business should learn a few things to start this lucrative addition to freight hauling.
What Does a Truck Broker Do?
A truck broker, also known as a freight broker, is the middle man. He’s in an agreement between a shipper who has goods to transport and a carrier who has the ability to move the load. While many shippers in the United States have direct contracts with trucking companies to transport their goods, using a freight broker can give shippers more flexibility. This can also help their shipments and help them save money. Truck brokers don’t have their own trucks and drivers. However, some owner-operators also choose to get their truck broker license. Instead, truck brokers arrange for reliable freight carriers within their network to service shipments.
Becoming a truck broker is a great opportunity to increase your revenue. Now is as good a time as any to get your truck broker license. Besides making a good salary, truck brokers are indispensable when it comes to transporting goods and cargo. And our trucking software makes it easier than ever to expand your business and negotiate shipments with other freight companies. If you are wondering how to become a truck broker or why adding truck brokering to your business is a good idea for you, contact our experts at Trucking Office today.
Why Become a Truck Broker?
So you get a call for a big load—great! The problem is, all of your trucks are already on the road with other loads. Thinking about all the revenue you could have gotten from that load? This is where truck brokering (or freight brokering) comes in. If you have a brokerage license from the FMCSA, you can sub that load out to another trucking company, and take a small commission. Typically, a trucking company can only negotiate their own freight, which gives them a two-part opportunity cost: the lost job itself, and the brokering fee they could have gathered for arranging alternate cargo delivery. So how do you get a brokerage license?
If you are unfamiliar with some of the trucker terminology check out this great Freight Terminology Dictionary.
Requirements to be a truck broker
You don’t have to take an exam or background check to receive your freight brokerage authority, and there is no age limit. First, you’ll need to obtain a proof of insurance of $10,000, in the form of either a surety bond (obtained through an insurance company), or a trust fund.
When you have this insurance, you can fill out and send the Federal Motor Carrier Safety Administration’s OP-1 Application for Motor Property Carrier and Broker Authority, along with a $300 (non-refundable) application fee. You should also fill out the BOC-3 form, which designates your process agent, or legal representative.
After submitting your application, wait for the FMCSA to issue you an MC, or motor carrier number. This number will allow you to start brokering loads. It’s especially easy to add a brokerage authority to your company if you already have a trucking authority.
What Truck Brokerage Software Does
TruckingOffice has recently released a new version of our software that caters specifically to truck brokerages. We eliminated some of the unnecessary functions, like maintenance records (since brokers are not in possession of a brokered load at any time). This truck brokerage software is streamlined to help you focus on the important parts. It will help you to keep your brokerage and regular trucking loads separated, especially in terms of financial records. This tool is geared towards organizing histories, both of loads and of customers, to allow you to access past information quickly. Same core product, different features—so it does exactly what you need it to.
Using truck brokering to increase revenue is just smart business. Our user-friendly truck brokerage software helps you to grow your business in an organized fashion.
I would like to know where do I get started
To get started with truck brokering you need a brokerage authority. Like a trucking authority you have to get an authority to operate as a truck broker. If you are not ready for that then I recommend working for a trucking company or agency for a while to learn more about the trucking industry first.
Good morning Mr. Allen my name is Brian im 18 yr old im really curious about being a broker want to get deep into it do you know the requirements and if you need to classes to get a some kind of diploma ?
There is no one answer for that. There are many ways to get involved. You could work for a local trucking company without a degree, however they do offer logistics degrees at many colleges. With a logistics degree you could get more involved in supply chain management. If you some day want to open your own brokerage business you would have to file for a brokerage authority with the FMCSA.
How do I learn this business?
I appreciated that reading about brokerage ill try to pursue it had bless
So does the surety bond need to be $10,000 or 75,000?
I have my authority now just need to get insured
Can I take classes to become a broker
Hello Allen
What trucking company or agency would you recommend starting to work and learn.
The best way to learn how to broker freight in the trucking industry is to look for a job working for a large logistics company or agency. Then with some experience you could consider opening your own truck brokerage company!
Hello there my name is Shedrack, and i want to know more about truck broker or the freight broker business. How can you help me?
It’s hard to become a freight broker without some prior experience. The best way to learn more about it is to work for an existing truck broker company for a year or two, then venture out on your own after that.
I have 2 trucks I need a job please
we can hire your trucks right away please contact isangarkhan@gmail.com for further info and start right away
How much is the software?
Hello!
Here is a link to our pricing page:
https://www.truckingoffice.com/tms/transportation-management-system-pricing/
Feel free to start a 30 day free trial at truckingoffice.com. There’s no obligation and you will have access to all of the features to see if it will work for you!
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
If you have any questions or need any assistance, we are available Monday-Friday from 9AM-5PM Eastern time and can be reached at 1(800)253-9647. Have a great day!
This post is very informative about broker boc 3 fmcsa file. Every trucking brokers can get very vast information from this post.
Who pays the truckers? The brokers or the shippers?
Whoever the trucker books the load with pays them for the freight move.
“First, you’ll need to obtain a proof of insurance of $10,000, in the form of either a surety bond (obtained through an insurance company), or a trust fund.”
I was wondering if you can expand on this part
The minimum amount for the surety bond or trust fund has been raised to $75k. The post has been updated.
Can you estimate the cost for the surety bond?
We are a small trucking company with a contract to haul live plants to various stores and other nurseries. We do have 3rd party trucking companies that haul some of these loads for us. Do we need a brokers license to do this?
Yes, when you take the freight order from the customer and hire a carrier to haul it, then you are acting as the middle man or broker. You do need a brokerage authority to do that. Our trucking software supports direct freight moves and brokered loads.
Can you tell me, is there a big freight broker company that do business from another country, for example SERBIA? Tnx
There are many brokerage and freight forwarding companies that are global, but we only operate in the United States and Canada.
Hello,
My ex boyfriend has a trucking company that I help finance under the impression that I would be partner if I distribute financially. Long story short, my ex and his cousin partnered and left me out. I am interested in brokering but don’t know where to start. I have no trucking authority and lost on what to do. I like the business and also need to make my money back. Where do I start? Thanks
You could start your own dispatching service where you work for trucking companies on a contract basis, or you could get your own brokerage authority to be an independent freight broker.
Are independent dispatchers (under contract with trucking
companies) required to obtain same licenses, insurance as brokers?
If you are operating under contract for a trucking company then you would be using their authority to operate. Check with them to make sure they have the proper insurance and trucking or brokerage authority.
Who is responsible for freight during transportation? I would assume the truck driver?
The trucking company is responsible for the freight while in transit, so yes the driver is responsible for it while it is on their truck.
We currently have a dot# and 5 million insurance umbrella and deal with highway road and bridge and oilfield work. Currently the companies call us for trucks to haul dirt or sand in west Texas, although these are not our trucks they do bill us direct. Is there a need to obtain a brokers license?
You would need a brokerage authority from the DOT anytime that you are acting as the middleman for freight. That means taking freight orders for shipments then contracting that out to outside carriers. However if you are contracted to do work for a project and part of that project is hauling materials, then it would fall under that contract and you wouldn’t need a brokerage authority. You should also check with the Department of Transportation to make sure your situation does not require the brokerage authority.
I have a trucking MC# and a DOT#. Can I add being a broker to my numbers to help move my freight?
First I should ask, If I ask another carrier to help me move my freight, do I need a broker license in this instance?
If you are not the customer or the shipper, then you do need a brokerage authority to hire another motor carrier.
You would need a brokerage authority from the DOT. Click here for more information on the FMCSA motor carrier website.
Where do I find shippers? I just got my brokerage authority
Would like to start finding loads
Once l have my brokers Freight license and surety can l work in all 50 states?
Yes, after you get your brokerage authority from the FMCSA you will be able to operate anywhere in the United States.
Can you share any insight as to why freight broker companies can take so long to pay truckers? My dad and brother have a trucking LLC and I’m helping them to process their invoices by sending them to the brokers they arrange the load with. It seems a bit off that they can take up to 30 days, but the payment process can be narrow down to a couple of days when we’re willing to allow brokers to keep up to 5% of what we agreed on. I’m wondering if it would be wise to cut the middle man and add brokerage authority to our company. Thoughts on that?
This post about broker boc 3 fmcsa file is really interesting. This page has a great deal of information for transportation brokers.
I HAVE A BROKER AUTHORITY, MC AND DOT NUMBERS AS WELL. CAN I LEASE OWNERS OPERATORS TO MY AUTHORITY OR HAVE TO HAVE A TRUCKING AUTHORITY AS WEL?
If you are going to operate as a carrier, then you would need the proper DOT trucking authority to operate as a carrier.
hey our company is alwayssmoving transportaion we provide dispatch service and brokerage services if anyone has trucks we are happy happy hire them and start earning together we operate all over united states we’re also currently looking to on board carriers we can help you move your loads
we are working for GLT logisics with an insurance bond of $250k. contact isangarkhan@gmail.com if anyone’s interested.