Question 1

What is a Freight Broker?

Accepted Answer

A Freight Broker is a "logistics provider".  Someone who, for a fee, arranges for the transport and movement of freight/cargo/goods/loads/commodities. 
 
The Freight Broker does not take possession of the freight, but only arranges for its movement and transport via carriers, truck drivers, owner operators.
 
The Freight Broker is considered the middleman between the Customer/Shipper and the Carrier/Truck Driver/Owner Operator.

Question 2

What are the REQUIREMENTS to become a Freight Broker?

Accepted Answer

Freight Broker REQUIREMENTS:
 
- Freight Broker Authority (License) - file an OP-1 form with the FMCSA
- Surety Bond or Trust Fund - BMC-84 or BMC-85
- Designation of Process Server - BOC-3 form filed with the FMCSA
- Unified Carrier Registration - UCR, for Brokers you would list 0 to 2 trucks
- W9
- Insurance - This is optional on top of the bond.  Examples are Contingent Cargo or Errors & Omissions

Question 3

What is the difference between a Freight Broker and a Freight Broker AGENT?

Accepted Answer

The difference is that the Freight Broker AGENT works under the LICENSE or AUTHORITY of the Freight Broker.  AGENTS are not required to have an authority as a Freight Broker does.  They are simply contracted to work under the Freight Broker's authority and get customers/shippers to move freight.

Question 4

Who is the FMCSA?

Accepted Answer

The FMCSA is the Federal Motor Carrier Safety Administration, the governing body, along with DOT (Department of Transportation), of the transportation industry.

Question 5

Do I need to be ACTIVE or have a Freight Broker license PRIOR to going after Customers/Shippers?

Accepted Answer

YES.  Customers/Shippers REQUIRE Freight Brokers to have met all the FMCSA requirements to be a Freight Broker PRIOR to contracting with them and potentially giving them their freight.

Question 6

What are the parties that Freight Brokers deal mainly with?

Accepted Answer

There are 2 parties that the Freight Brokers deal mainly with:
 
1.  Customers/Shippers - Individual/companies that have the freight
 
AND
 
2.  Carriers/Truck Drivers/Owner Operators - Individuals/companies that transport the freight

Question 7

How do Freight Brokers contract with the 2 parties they deal with?

Accepted Answer

Freight Brokers contract with the 2 parties by:
 
1.  Customers/Shippers - Broker/Shipper Packet
 
AND
 
2.  Carriers/Truck Drivers/Owner Operators - Broker/Carrier Packet

Question 8

What are the contents each of the packets?

Accepted Answer

Broker/Shipper Packet:
- Broker/Shipper Agreement
- copy of Broker's W9
- copy of Broker License (Authority)
- copy of Broker Bond
- copy of Broker's Certificate of Insurance
- Credit Application (if Freight Broker is Factoring)
 
Broker/Carrier Packet:
- Broker/Carrier Agreement
- Broker Company Profile
- copy of Carrier Operating Authority
- copy of Carrier's Profile
- copy of Carrier's W9
- copy of Carrier's Certificate of Insurance
- Carrier's credit application (if Carrier has Factoring)

Question 9

Is the course also a self-paced training course?

Accepted Answer

Yes.  Outside of the LIVE trainings, the platform is self-paced, learn as you go.

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