Digital freight brokerage

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

You must submit your Freight Broker Registration application to the Federal Motor Carrier Safety Administration (FMCSA) through their Unified Registration System. Upon receiving your pending US DOT number you’ll also need to meet the additional requirements of proof of financial responsibility by posting a $75,000 Surety Bond or $75,000 trust fund, filing your BOC-3, and filing a yearly Unified Carrier Registration.

Q: What's the difference in being a Freight Broker and Freight Broker Agent?

The first one works on his own, runs his company. The second one is an employee of a brokerage company and gets a commission percentage of the brokerage fee.

Q: Can I work at home?

You not just 'can' but you 'must' work at home at the beginning in order to save money, keep your expenses low while you grow and develop your business.

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

Property Broker is the correct terminology for many names used in the business to identify what we do. Truck Broker, Freight Broker, Load Broker, Freight Agent, Transportation Broker or simply Broker or Agent are all interchangeable terms synonymous with ‘Property Broker’. An active FMCSA registration to operate as a Property Broker allows a third-party to arrange pick-up and delivery of a Shipper's product by a Carrier without ever having physical control of the shipment.

Q: Does a Freight Broker need a broker’s license specific to their state or in each state?

Freight Brokers are regulated by the Federal Motor Carrier Safety Administration (FMCSA). The Freight Broker registration with the FMCSA allows us to make arrangement for the transportation of freight anywhere within the United States. So, no, you will not need a separate freight broker’s license for each state.

Q: How much does it cost to apply for your Freight Broker Registration / US DOT # with the FMCSA?

The FMCSA charges $300.00 to apply for a registration with an operating status of a motor property carrier, motor passenger carrier, freight forwarder or freight broker. The FMCSA does require all new applicants to complete their registration application online through their Unified Registration system. No new applications by mail. If you’d like, a Freight Broker Training filing specialists will file for your Freight Broker Registration on your behalf with the FMCSA for $450.00 (includes the $300.00 fee charged by the FMCSA). Plus, our course graduates are eligible for one Freight Broker Registration filing service included in their course cost ($150 value, filing service does not include the $300.00 fee charged by the FMCSA).

Q: What is a BOC-3 and how much does one cost?

A BOC-3 form is provided by a process agent. It’s a blanket form of coverage that designates a representative in each individual state upon whom court papers may be served in any proceeding brought against a motor carrier, broker or freight forwarder. A BOC-3 form and filing is usually priced between $25 to $150, depending on the process agent providing the form.

Q: What is the difference in being a Freight Broker or a Freight Broker Agent?

A broker is the owner of his or her own company. They are required to meet all legal requirements (FMCSA Registration, Bond/Trust Fund, BOC-3) to operate as a broker. An agent works under the umbrella of the registered broker and typically receives a commission percentage of the brokerage fee.

Q: Is Freight Broker training school required?

Currently the answer is “Not yet”. Soon, the FMCSA will be establishing new rules requiring brokers to show proof of knowledge or have relevant experience. However, whether training is required by law or not, the reality is that the failure rate for those who attempt this business without freight broker training is high. In order for a broker to be successful in any industry (stock broker, real estate broker, etc.), formal training is a must. Freight Mover School will prepare you to perform broker duties in a profitable, ethical manner, giving you the tools needed to be successful in the field.

Q: Should a Freight Broker school be affiliated with a freight brokerage?

Yes! And the instructors should be actively engaged in brokering freight. How can an instructor teach something they don’t do themselves? When a school tells you they are affiliated with a brokerage ask for the brokerage name and US DOT # or MC # so you can check their FMCSA registration or authority and make sure it is current.

A person who wants to become a freight broker can find several training options available to him. There are mainstream schools that offer freight broker training as well as online-only schools that provide training for this career. These training programs are designed to provide aspiring brokers with the detailed information they need to succeed in this career. As an alternative to enrolling in school, a person can also get trained in freight brokerage by reading business books, downloading e-books and e-courses, or signing up to work with an experienced freight broker.

What is digital freight brokerage?

A ship or freight broker is a kind of intermediary between the direct owner of the cargo and the owner of the ship. He takes no part in the transaction at all. At the same time, his role in the process is more than significant. The ship broker is not prescribed in the contract. The amount of his fee is a percentage of the total freight.

What do digital freight brokers do?

Duties:

Quotation of rates for international maritime transportation, including groupage cargo, purchase of freight in lines, from agents and carriers;
Monitoring of the betting market;
Development and proposal of alternative ways of sending cargo / development of new routes;
Coordination and control of Door to Door cargo transportation, incl. from Southeast Asian countries (China, Korea, Japan) and others through the ports of the Russian Federation and the EU;
Advising colleagues on freight issues, processing requests;
Interaction with ports, ship owners, freight brokers;
Organization and implementation of work with shipping lines and agents;
Booking placement control;
Entering operational information into tables;
Daily monitoring of the operational situation on the movement / arrival of containers;
Checking invoices from contractors.

A freight broker is an intermediary between the shipowner and the owner of the cargo. He brings together the parties to the transaction, but he does not appear in the contract. For services, the broker receives remuneration in the form of a percentage of the freight amount.

What do you need to be a digital freight broker?

Requirements:

Excellent knowledge and practical experience (from 3 years) in organizing maritime transport, understanding the principles of organizing transportation by other modes of transport;

Knowledge of container lines and their competitive advantages;

Knowledge of the features and conditions of various types of cargo transportation, Incoterms;

Knowledge of international law, the legislation of the Russian Federation regarding the regulation of freight forwarding in the performance of transportation in international traffic;

Knowledge of the rules of registration of transport documents;

English Intermediate/Upper Intermediate, written and spoken;

Proficiency in Chinese is welcome, but not required;

Confident PC user (Excel, Word);

The developed base of carriers will be an advantage.

“Why resort to the help of an intermediary? After all, you can find a ship on your own, ”thinks of people who have not previously encountered water transportation. To complete a transaction, you need to have professional knowledge and contacts.

Is it worth being a digital freight broker?

Of course, getting this profession is definitely worth it. The salary of a specialist depends on the number of completed orders. The average freight broker salary is several tens of thousands of US dollars. This is the reason digital freight brokerage is becoming so popular.

You can pass freight broker training with us. We offer not only services, but also training of specialists. Therefore, if you need to prepare staff for your company or get an education personally, then you can contact us.