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Frequently Asked Questions

Question: How can I locate the carriers and shippers for running the business?

Answer: There are several different areas in which to find shippers. Several freight brokers purchase industry databases and member information of different industry organizations. You can also enter into Co-Broker agreements with other freight brokerages.

The primary job function you will perform is to contact companies who ship products and establish new accounts to use your services. You will also contact carriers in which to move your freight through using internet load boards, carrier databases and industry associations that you have acquired through networking.

Question: What is a BOC-3?

Answer: BOC-3 is a processing agent. This is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder.

Question: How much is a surety bond?

Answer: You must post a bond of at least $75,000. The amount you pay for your bond depends on several

factors including the type of bond you choose, and the programs provided by the financial institution you choose to use.

Question: How much does it cost to apply for your authority?

Answer: The FMCSA charges $300.00 to apply for operating authority (motor property carrier, motor passenger carrier, freight forwarder, broker). It requires that you fill out a 4-page form. You can do it online or by mail. When filing for motor carrier authority, there is no additional fee for a USDOT #.

Question: What are the legal requirements to operate as a Freight Broker?

Answer: You must apply for your authority from the Federal Motor Carrier Safety Administration (FMCSA) allowing you to act as a freight broker, post a $75,000 Surety Bond and file your BOC-3. You will also be required to complete a yearly Unified Carrier Registration.

Question: What is the difference between a freight broker & freight agent?

Answer: A freight broker assumes all legal and financial responsibilities for the movement of cargo. They have met the requirements under the FMCSA Guidelines to legally operate as a property broker in the United States. A freight agent serves as an independent contractor for a freight brokerage but serves in the same capacity. Typically freight agents starting out will receive a commission of 50% of the gross profit from every load. An agent who is established with a book of business can command as high as 75% of the gross profit from freight moved for the brokerage. The agent in return does not assume any responsibility for insurance, authority, claims or collections of freight bills.

Question: What is a Freight Broker (Property Broker)?

Answer: Property Broker is the correct terminology for many names used in the business to identify what we do. Truck Broker, Freight Broker, Freight Agent, Transportation Broker or Agent are all interchangeable terms synonymous with Property Broker’. Property Broker Authority allows a third-party to arrange pickup and delivery of a Shipper’s product by a Carrier without ever having physical control of the shipment.

Question: How long is the course?

Answer: The course is self-paced. There are no required study hours and course requirements. We do offer Quizzes and Certification, but this is not mandated by the FMCSA.

Question: Can I work from home?

Answer: Yes! In fact, when starting your business, it is recommended that you start from a home office to keep your expenses low while you grow and expand your business.

Question: What do I need to get started?

Answer: The following are the basic office tools required for either broker or agent startup:

1.           High speed internet access

2.           Computer

3.           A fax/copy machine

4.           A telephone with at least two lines (one dedicated to the fax, one dedicated for voice.)

5.           A high-quality broker software program

Question: How much can I earn as a Freight Broker and how soon can I start earning?

Answer: Freight brokering is an excellent business and the agents and brokers that are successful are making anywhere from $40,000.00 to upwards of six figures per year depending upon the decision to work as an agent or broker and whether to operate a home-based business versus a larger office with employees. This business is based on contacts and relationships. It takes time to build contacts and relationships and turn them into paying customers. Sometimes it can take six months or longer to establish a solid customer base to see a profitable income, but it can be done in less time. Overall time lengths vary primarily on the individual\’s determination and desire to succeed in this business. Earnings are determined on your motivation to succeed, and how you adapt to the industry.

Question: Can I apply for a Freight Brokers License if I have a felony on my record?

Answer: Yes. having a felony does not mean you can’t apply or be granted a freight broker’s license from the FMCSA. You need ONLY to be a VALID US Resident.

Question: I'm already a licensed freight broker. Can I use this to educate my agents?

Answer: Yes. Our material is tailored in a comprehensive manner so that new freight agents not only understand their responsibilities, but also those of the broker.

Question: Is Freight Broker Training School required?

Answer: Freight Broker Training School is not required to receive your property broker authority. However, the failure rate for those who attempt this business without freight broker training is high. For a broker to be successful in any industry (stockbroker, real estate broker, etc.), formal training is a must.