1. What is a Freight Broker?
A freight broker is legally a “property broker”, which is the term established by the
Federal Motor Carrier Safety Administration (FMCSA), a division of the United States Department of Transportation. It describes licensed individuals, or corporations, that help make a shipper and an authorized motor carrier successful in the transporting of freight.
2. What are the requirements to be a Freight Broker?
There are three legal documents needed to operate as a freight broker. They are:
- A Broker’s Authority – through the FMCSA - $300 fee. You fill out Form OP-1 and file for your authority to operate as a broker.
- Surety Bond or Trust Fund – obtained from a bank or bonding company. The cost varies depending on your personal credit. You are required to carry a $10,000 bond or trust, but if your credit is good, some companies will put up your bond for you for a fee (normally $500 to $700 per year). The form filed with this is BMC-84 or BMC-85.
- Processing Agent – This runs approximately $50, with form BOC-3.
3. Is this a growing field? Is it in demand?
As of this writing, there are approximately 15,000 licensed transportation brokers in the nation, but a large number are inactive. This is still a relatively new industry, as there were only around 70 brokers in 1970. It is estimated that freight brokers accounted for over 10% of the shipping industry, or roughly $40 billion out of $400 billion, in revenues. A recent article in the Wall Street Journal cited freight brokerage and logistics as the fastest growing sector of the transportation industry.
4. Is there another way to get into the industry without having to get a bond and license?
Yes. You can open a freight agency, or become a freight broker agent, with little risk, and without obtaining your own licensing. In that case, you would operate as an agent, under the umbrella of another broker’s authority, and you would do a split with the broker on your profits.
5. What equipment will I need to get started?
If you want to open a freight brokerage or agency, you will need a computer with high speed internet, a fax machine, a telephone and service with inexpensive unlimited long distance. If you are opening a brokerage, you will also most likely want to purchase a transportation software program. If you are an agent, you will use your broker’s software system.
6. Is this a job that I can do from home?
Absolutely. Most agents and many brokers work out of their home office.
7. How long will it take for my business to become profitable?
It will take some time to build up your customer database, just as with any business that you start. Typically it can take 3 to 6 months of disciplined work to show a substantial profit – sometimes it takes much less, sometimes more. But once you begin securing customers, they normally have residual shipping, so the sale repeats itself over and over. Your level of success depends on many factors, such as your level of determination, your tenacity, and your genuine desire to help your customers succeed.
8. How much money can I make as a freight broker or agent?
Again, your individual earnings will depend on your personal abilities and how determined you are to succeed – how much focused energy are you willing to invest in your own success? As a full-time broker or agent, you can make from $40,000 to well over $200,000 or more. The potential is virtually unlimited as you grow.
9. How do I find customers?
In the course, we go into detail, showing many different tools for locating your shippers. Some of these sources are publications, reference sources, internet sources, etc.
10. How do I decide whether to start my own brokerage or become an agent?
There are many factors in making this decision, which we go over in detail during the course. Three major factors are money, time, and experience, among others. Either way, you will need 3 – 6 months worth of living expenses or a supplemental income while you establish your business. If you open your own brokerage, you will also need additional start-up money for cash flow and start-up costs.
11. How do I register?
Every student must register with a university or college that offers our courses. GES does not offer courses directly to the public. We work in partnership with colleges and universities nationwide. You must locate a school and contact them for registration information.
12. How much do the courses cost?
Our partner colleges set the prices for the courses they offer. You must locate a school for cost and registration information.
13. Why do I have to locate a school?
GES does not offer courses directly to the public. We work in partnership with colleges and universities nationwide. GES is the content developer for the course, but the schools actually offer the courses and provide the certificates upon completion.
14. Can I register for courses if I live outside the United States?
Yes you can! The International zip code locator will determine which school is nearest you. Simply click here to choose your country, and select the course you wish to take.
15. Do I ever have go to the school I register with?
Not in most cases. Most of our partner schools offer telephone or online registration. All of our courses are delivered entirely online, so you never have to go to a class or travel to the school. Locate a school and contact them for more registration options.
16. What if there is not a school in my area that offers the course I want to take?
You can register with the school that is closest to your zip code (even if it is far away). Since GES courses are online, you never have to actually travel to the school. Most schools offer telephone or online registration. Locate a school for more registration information.
17. How long does it take to complete a course?
All of our courses are self-paced and open enrollment. You can start and finish the course at your own pace. When you register for a course, you are given an 180 days (6 months) to complete the course. If you need more time, extensions are available.
18. Do I have to buy additional materials?
All materials are included. The cost of materials will be covered by your tuition. GES will ship all materials via UPS ground service upon registration.
19. Can I get financial aid?
GES courses are non-credit courses, so they do not qualify for federal aid. In some states, vocational rehab or workforce development boards will pay for qualified students to take our courses. Locate a school for more information on this.
GES also provides a loan opportunity for students. Simply go to www.collegeloanapplication.com to apply for an easier qualifying loan. Click here for more information on this loan program.
20. What happens when I complete the course?
Upon successful completion of the course, you will be awarded a certificate of completion from the school you registered with. You must obtain a final passing grade of 70% or greater to be awarded a certificate.
21. Am I guaranteed a job?
GES courses will provide you with the skills you need to obtain an entry-level position in most cases. We do not provide direct job placement services, but our instructors will help you build your resume and are available to give advice on finding your first job. Instructors will also be available to use as a professional reference upon completion of the course. Potential students should always do research on the job market in their area before registering.
22. Who will be my instructor?
Instant Mentoring enables 24x7 access to certified instructors and Subject Matter Experts (SMEs). Instructors are Microsoft Certified Trainers (MCTs), all possessing instructional backgrounds. In addition to providing content expertise, our Mentors facilitate interaction and enhance the overall learning experience.
23. Can this course be taken on a Mac?
Yes.
24. How can I get more information on the course?
If you have questions that are not answered on our website, please feel free to contact us via LIVE chat (click the button below). If you are visiting us during non-business hours, please feel free to send us a question using the “Ask a question” button below. You may also call us at 1-866-441-5454. We will answer your questions promptly.
25. When can I start the course?
Our courses are all open enrollment. You can register and start the course as soon as you are ready. Locate a school for registration information.
Freight Broker/Agent Training
GES 703 -- 150 hours
FAQs
- A Broker’s Authority – through the FMCSA - $300 fee. You fill out Form OP-1 and file for your authority to operate as a broker.
- Surety Bond or Trust Fund – obtained from a bank or bonding company. The cost varies depending on your personal credit. You are required to carry a $10,000 bond or trust, but if your credit is good, some companies will put up your bond for you for a fee (normally $500 to $700 per year). The form filed with this is BMC-84 or BMC-85.
- Processing Agent – This runs approximately $50, with form BOC-3.
1. What is a Freight Broker?
A freight broker is legally a “property broker”, which is the term established by the
Federal Motor Carrier Safety Administration (FMCSA), a division of the United States Department of Transportation. It describes licensed individuals, or corporations, that help make a shipper and an authorized motor carrier successful in the transporting of freight.
2. What are the requirements to be a Freight Broker?
There are three legal documents needed to operate as a freight broker. They are:
3. Is this a growing field? Is it in demand?
As of this writing, there are approximately 15,000 licensed transportation brokers in the nation, but a large number are inactive. This is still a relatively new industry, as there were only around 70 brokers in 1970. It is estimated that freight brokers accounted for over 10% of the shipping industry, or roughly $40 billion out of $400 billion, in revenues. A recent article in the Wall Street Journal cited freight brokerage and logistics as the fastest growing sector of the transportation industry.
4. Is there another way to get into the industry without having to get a bond and license?
Yes. You can open a freight agency, or become a freight broker agent, with little risk, and without obtaining your own licensing. In that case, you would operate as an agent, under the umbrella of another broker’s authority, and you would do a split with the broker on your profits.
5. What equipment will I need to get started?
If you want to open a freight brokerage or agency, you will need a computer with high speed internet, a fax machine, a telephone and service with inexpensive unlimited long distance. If you are opening a brokerage, you will also most likely want to purchase a transportation software program. If you are an agent, you will use your broker’s software system.
6. Is this a job that I can do from home?
Absolutely. Most agents and many brokers work out of their home office.
7. How long will it take for my business to become profitable?
It will take some time to build up your customer database, just as with any business that you start. Typically it can take 3 to 6 months of disciplined work to show a substantial profit – sometimes it takes much less, sometimes more. But once you begin securing customers, they normally have residual shipping, so the sale repeats itself over and over. Your level of success depends on many factors, such as your level of determination, your tenacity, and your genuine desire to help your customers succeed.
8. How much money can I make as a freight broker or agent?
Again, your individual earnings will depend on your personal abilities and how determined you are to succeed – how much focused energy are you willing to invest in your own success? As a full-time broker or agent, you can make from $40,000 to well over $200,000 or more. The potential is virtually unlimited as you grow.
9. How do I find customers?
In the course, we go into detail, showing many different tools for locating your shippers. Some of these sources are publications, reference sources, internet sources, etc.
10. How do I decide whether to start my own brokerage or become an agent?
There are many factors in making this decision, which we go over in detail during the course. Three major factors are money, time, and experience, among others. Either way, you will need 3 – 6 months worth of living expenses or a supplemental income while you establish your business. If you open your own brokerage, you will also need additional start-up money for cash flow and start-up costs.
11. How do I register?
Every student must register with a university or college that offers our courses. GES does not offer courses directly to the public. We work in partnership with colleges and universities nationwide. You must locate a school and contact them for registration information.
12. How much do the courses cost?
Our partner colleges set the prices for the courses they offer. You must locate a school for cost and registration information.
13. Why do I have to locate a school?
GES does not offer courses directly to the public. We work in partnership with colleges and universities nationwide. GES is the content developer for the course, but the schools actually offer the courses and provide the certificates upon completion.
14. Can I register for courses if I live outside the United States?
Yes you can! The International zip code locator will determine which school is nearest you. Simply click here to choose your country, and select the course you wish to take.
15. Do I ever have go to the school I register with?
Not in most cases. Most of our partner schools offer telephone or online registration. All of our courses are delivered entirely online, so you never have to go to a class or travel to the school. Locate a school and contact them for more registration options.
16. What if there is not a school in my area that offers the course I want to take?
You can register with the school that is closest to your zip code (even if it is far away). Since GES courses are online, you never have to actually travel to the school. Most schools offer telephone or online registration. Locate a school for more registration information.
17. How long does it take to complete a course?
All of our courses are self-paced and open enrollment. You can start and finish the course at your own pace. When you register for a course, you are given an 180 days (6 months) to complete the course. If you need more time, extensions are available.
18. Do I have to buy additional materials?
All materials are included. The cost of materials will be covered by your tuition. GES will ship all materials via UPS ground service upon registration.
19. Can I get financial aid?
GES courses are non-credit courses, so they do not qualify for federal aid. In some states, vocational rehab or workforce development boards will pay for qualified students to take our courses. Locate a school for more information on this.
GES also provides a loan opportunity for students. Simply go to www.collegeloanapplication.com to apply for an easier qualifying loan. Click here for more information on this loan program.
20. What happens when I complete the course?
Upon successful completion of the course, you will be awarded a certificate of completion from the school you registered with. You must obtain a final passing grade of 70% or greater to be awarded a certificate.
21. Am I guaranteed a job?
GES courses will provide you with the skills you need to obtain an entry-level position in most cases. We do not provide direct job placement services, but our instructors will help you build your resume and are available to give advice on finding your first job. Instructors will also be available to use as a professional reference upon completion of the course. Potential students should always do research on the job market in their area before registering.
22. Who will be my instructor?
Instant Mentoring enables 24x7 access to certified instructors and Subject Matter Experts (SMEs). Instructors are Microsoft Certified Trainers (MCTs), all possessing instructional backgrounds. In addition to providing content expertise, our Mentors facilitate interaction and enhance the overall learning experience.
23. Can this course be taken on a Mac?
Yes.
24. How can I get more information on the course?
If you have questions that are not answered on our website, please feel free to contact us via LIVE chat (click the button below). If you are visiting us during non-business hours, please feel free to send us a question using the “Ask a question” button below. You may also call us at 1-866-441-5454. We will answer your questions promptly.
25. When can I start the course?
Our courses are all open enrollment. You can register and start the course as soon as you are ready. Locate a school for registration information.
