How to Become a Transportation Broker

Packers and movers is a good business option. This business does not depend on weather, festivals, or any such factors. Anyone would want to shift, or move some goods at anytime, all the year round. You too would like to cash on this opportunity and become a transport broker, then learn ‘how to become a transportation broker’.  Most of the goods are transported through trucks. Thus, trucking industry has a huge scope and is increasing day by day.

You can become a transport broker or freight broker. A transport or freight broker is a link between the one who wants to transport the goods and the company transporting the goods. A transport or freight broker does not take possession of goods, but only takes the responsibility of transporting goods from one location to another.

How to become a transportation broker?

  • Like any other profession, this also needs training. You will have to take transportation brokerage training, which provides all the information related to truck transport.
  • You also need to understand the entire documentation procedure and documents associated with shipping of goods.
  • You can either opt for an ‘on the job training’, or take up a course in the same. The courses are short, usually five days or a weekend course. You can also opt for an online course. On the job training will help you understand the concepts better; however, you will have to take up a course to get a license to become a transport broker.
  • You will have to get your ‘broker’s authority’. The Federal Motor Carrier Safety Administration, which is a part of the US Department of Transportation, issues this credential. You will have to fill in the OPD – 1 form that begins the process of being a verified and validated broker.
  • Next you will have to get a trust fund or a surety bond. You can get this from a bonding company or a local bank.
  • You will have to check your personal credit to find out the cost of the bond. The personal credit can be checked on equifax.com, transunion.com, or experian.com. You can know your personal credit score from these sites.
  • To take the procedure further, you will need a $10,000 fund or bond, and you need to fill a   BMC- -84 form or BMC  – - 85 form.
  • Next step is to file a ‘processing agent form’. This will cost somewhere around $50. It is known as an OC – 3 form.
  • In case you do not want to get into this procedure or lack funds for bond or surety, you can opt for partnership. Locate a nearby freight agency. Talk to the agency owners, and you can share the profits between your services. You can gain further information on freight agencies from your local ‘Chamber of Commerce’.
  • After having procured the license or permission to work with a freight agency, find your client base. For this you will need to advertise and indulge into business development activities. Contact the corporate, near goods stores, retails stores, etc. You can good client base from them.
  • You can get information about new business in and around by contacting the Chamber of Commerce. You can contact these new business houses.
  • Advertise your service by brochures, flyers, website, etc.

You become a transport broker once you get the license, or opt for partnering or working with a freight agency. If you are starting a new agency, you will have to get clients for your business as mentioned above.


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