Freight Broker

Ever wonder how products get from factories to store shelves? That’s where freight brokers come in—they’re the masterminds behind smooth, efficient shipping operations.

With the right skills, licensing, and industry know-how, you can tap into this high-demand logistics career.

Ready to learn how to become a freight broker and take control of your future in the world of transportation? Let’s break it down.

What Does A Freight Broker Do?

A freight broker acts as the middleman between shippers and carriers, ensuring goods are transported efficiently and cost-effectively. They coordinate logistics, negotiate shipping rates, and manage communication between companies needing to move freight and trucking or transportation providers.

By matching available loads with reliable carriers, freight brokers help keep supply chains running smoothly. Their role also includes tracking shipments, handling documentation, and ensuring regulatory compliance, making them essential players in the logistics and transportation industry.

Some of the responsibilities of a freight broker include:

• Providing potential customers quotes for shipping
• Contacting trucking companies and other carriers to develop schedules
• Procuring freight carriers that are reliable and trustworthy
• Negotiating with carriers on pricing to get their customers the best rates
• Completing all required paperwork required for deliveries
• Keeping customers informed of delivery status updates
• Collections when invoices are not paid
• Payment to freight carriers

Freight brokers will usually work for themselves. There are some freight broker jobs out there as well, but those are usually pretty limited.

It is important to note that a freight broker does not do any deliveries themselves. They outsource the transportation needs to different motor carriers and trucking companies.

Becoming a freight broker is one of our suggested jobs for people with back problems.

What Does A Freight Agent Do?

This career guide focuses specifically on how to become a freight broker, but if you are looking for something with a bit less responsibility – then becoming a freight agent may be just the thing.

A freight agent will do a lot of what a freight broker does, but cannot work on their own and typically is not responsible for the financial or negotiating aspects of a broker’s job.

They will work as an independent contractor under a freight broker and are not required to get the same bonds and licensing as a broker. You can follow the steps below to become a freight agent, just omit the need for starting a business and getting bonus/insurance.

How To Become A Freight Broker

A great understanding of the freight industry is needed to be successful in this job, so some education will definitely be needed. Below are the steps on how to become a freight broker.

1. Basic Requirements

• Must be at least 18 years of age
• High school diploma or GED

2. Education

Although not required, attending a school that specializes in freight brokerage is highly recommended. Attending a school will help you better understand the freight industry, allow you to learn about tools the industry uses, and how to set yourself up in a freight broker business.

There are options to do freight broker training online, or you can use our tool below to find a school local to you that offers freight broker training.

3. Choose and Register A Business Name (only for Broker)

Now that you have your training complete you can decide on a name for your business and register with the Internal Revenue Service (IRS).

We highly recommend you do a trademark search and check with a lawyer and accountant before starting your business. This will ensure you are on the right path! This is a great time to get that business plan going as well so you have a clear path to success.

4. Apply For USDOT (Only For Broker)

A USDOT number is required for all freight brokers. Using an OP-Form you can apply and when approved you will receive a USDOT number that certifies you are an approved broker. Please note this process can take up to a month.

5. Freight Broker Bond – BMC 84 (Only For Broker)

A required bond called the BMC-84 shows trucking companies that you are financially able to send payment in the event you do not follow contractual obligations. The bond requirement is $75,000 and acts as insurance. The amount you pay will be dependent on your credit score, and you can be denied a bond if your credit is poor.

6. Find Trucking Partners (Only For Broker)

Before you even think of bringing on customers you will need to make sure you have amazing freight carriers to work with. Interview different carriers, do an analysis of them online, and try to get as many customer reviews as possible. After all, your success as a freight broker depends on them.

7. Start Marketing

You are now ready to kick off your new career! With everything in place, you can now get your marketing plan going. Whether you choose cold calling, online marketing, or in-person events this is the time to get out there and make a company want to work with you. What makes you different? Why should a company change from its existing freight brokerage?

Pros & Cons Of Being A Freight Broker

The pros and cons of being a freight broker may vary if you are working for yourself or for someone else. Below are a few of the most common pros and cons of this career depending on the path you choose.

How Much Do Freight Brokers Make?

According to the Bureau of Labor Statistics, the median annual pay for freight agents (who typically make a bit less than a broker) in 2020 was $47,170. There was no specific data for freight brokers, but there are freight brokers earning 6-figure incomes and more. How much you can make is dependent on your motivation and sales aptitude.