How do I get a Freight Broker License?

A freight broker is a company that acts as a middleman, arranging services between people or businesses who need packages shipped and shipping companies. They essentially assist trucking companies in filling their trucks and earning money, as well as individuals with items in arranging shipping, fees, and terms. A freight broker license is required in the United States, regardless of whether the broker is an individual or a company; requirements and procedures may differ in other countries.

Obtaining a freight broker license frequently begins with education. Many aspiring freight brokers enroll in training programs to learn the skills they’ll need to get licensed and start working as a freight broker. Some of these training courses can be found on the internet. Formal education isn’t required to obtain a license, which is unusual. Working under the supervision of a licensed freight broker or reading books and manuals are two ways to learn what you need to know.

The next step is to apply for a license with the Federal Motor Carrier Safety Administration after you’ve gained a solid understanding of the ins and outs of freight brokering (FMCSA). A prospective freight broker can do so completing and submitting an Application for Motor Property Carrier and Broker Authority form, which is available on the FMCSA website, along with the required fee. After completing, submitting, and paying for this form, the prospective broker must wait for a Motor Carrier Number to be assigned to him. Without this number, he will be unable to complete the rest of the freight broker license application process.

The prospective freight broker’s next step after receiving his Motor Carrier Number is to obtain a $10,000 US Dollars (USD) surety bond for his company. He’ll have to show the FMCSA proof of bond. Following that, the freight broker must select process agents in each state where he intends to do business, complete a Designation of Process Agent Form, and pay the required fee for each agent. In the event of legal action in the process agent’s state, the process agent is set up to assist the freight broker.

After completing these steps, the prospective freight broker must simply wait for FMCSA processing and approval. This could take anywhere from four to six weeks to complete.