Freight Broker Training – Organizing home office!

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.

There are over 15,000 licensed freight brokers and even more freight agents in the US and a large number of them work from the head office. For some people it is a socle, for others it is a spare bedroom and it can be a kitchen table for everyone.

Today I would like to tell you about my experience in organizing your home office as a freight broker, a truck broker, a logistics broker or a freight agent including advices and suggestions.

Having a defined work space is an important step, that is why find a place in your house or apartment where you can work conveniently. The main thing consists of speedy accessing of all critical devices and resources you will need during the day.
Assess necessary technical resources you should have in your home office. As a freight broker or agent you can choose some points for your home office:

unlimited phone service with 1 or preferred 2 available lines
high speed Internet access
the newest computer with a sufficient speed and storage
quality monitor or dual monitors if possible
email service
all in one printer/fax/scanning machine
load board access to post load and search for trucks
business software like Microsoft Office or like this one
freight broker software (programme for optional work)

Set up your office with a view from the window or a place with good lighting. Believe me the sunlight is an integral part of your productivity.
Organize your office where there is a room for a work and a room for storage of files, documents and related paperwork as required. Don’t take too long, for multitasking it is important to have easy access to tools and resources.
Invest in a quality desk with a spacious work space and a nice chair. They are three things that should not be neglected. Remember you will do business for 8,10, 12 hours a day. You can find a low-cost used desk and/or a chair of a high quality on craiglist.com.
Set working hours and inform your friends and family about it. It is important for two reasons:

1) it helps you to come into your own here

2) it helps to avoid excessive and undesirable calls and visits during the working day.

Of course, flexibility means a great chance to be a businessman but it is necessary to have some time to become successful.

In 1994 I began to do my first business and during my career I have worked at home for 4 years. Then I have assimilated that you must be disciplined working at home office like I work in other places.

After that you understand that there are differences between a home-based work and a desk job. Here are some of these: family, television, refrigerator, home phone, friends/neighbors, mail man, home projects, laundry and many more. If you want to be a successful home based freight broker or freight agent it is obligatory to minimize everything that your time and energy go and confuse you.

Best wishes in organizing your home office. If you want to get to know more about the ways to become a freight broker or a freight agent read my blog and check out my online freight broker training program.