FREIGHT BROKER LICENSE

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Get a Freight Broker License Today




Are you considering getting a freight broker license? If so, Moving Authority is the number one resource in the US for getting a license. And there’s no reason to delay becoming a freight broker. That’s because of all the benefits associated with working as a broker. It’s a rewarding, lucrative career that you can enjoy. Plus, it’s not that difficult to become a broker.



You can make plenty of money connecting shipped goods to trucking companies as a broker. But there are steps that you’ll need to take to get your license. After all, freight brokers get regulated by the FMCSA. (FMCSA refers to the US Federal Motor Carrier Safety Administration.) There are many FMCSA requirements, but the Moving Authority experts can go over them with you. Please feel free to scroll down and read our step-by-step guide for getting your license. If you have any questions about working as a freight broker, do not hesitate to contact us.




What Does a Freight Broker Do?




Think of a freight broker as the middleman in the freight transportation process. Freight brokers never ship cargo on their own. And brokers also never supply cargo that gets shipped. Instead, they negotiate transactions between carriers and shippers of goods. 



Keep in mind there are key differences between freight forwarders and freight brokers. The broker never handles an actual shipment. But the freight forwarder takes possession of goods that will get shipped. Next, the forwarder consolidates different small shipments into one big shipment. Then, the forwarder coordinates the transportation of the shipment. Sometimes, one US company will provide both forwarding and brokerage services. For now, let’s concentrate on freight broker certification.




The Key Advantages of Operating as a Licensed Broker




Do you value independence, freedom, and having strong earning potential? If so, there’s no wonder that you're considering working as a licensed freight broker. In fact, there are countless advantages that come to you once you secure your broker license. Let’s now go over three of the advantages that come with securing a license.




Broker Advantage 1: There’s No Cap on Your Earnings




If you're a broker of freight, then you have an almost-limitless earning potential. As long as you work hard, you can make a lot of money as a broker with a license. A broker gets paid through commission for every load he or she moves and books. Because of this, successful brokers can make over $150,000 per year. 



Many brokers even decide to create their own brokerage companies. Once they do, these brokers can manage a team of other freight brokers. Now, starting your own brokerage is no easy task. That’s because a broker must have a lot of startup capital. It’s best to start out as an independent freight agent. Then, over time, you can build up your own team of brokers.




Broker Advantage 2: There’s No Time Spent Traveling on the Road




Are you sick of commuting or having to spend a lot of time on the road? If so, you're going to love working as a freight broker. In fact, here's a key reason why many truck drivers decide to become brokers. They realize that they're missing out on too many holidays and birthdays. 



No matter your industry, having less travel and commuting time is ideal. That’s why working as a broker is one of the best jobs in the transportation industry. A broker can work from the convenience of his or her home. Plus, you can take time off when you want to. This means you can kiss the days of having to request vacation time and PTO goodbye.




Broker Advantage 3: Cheap Startup Costs




Most newcomers can get started becoming a broker for only a few thousand dollars. Sometimes it’s even less if you begin working on behalf of an established freight broker. The key is to start small and begin operating as an independent agent. Then, you can build up your business as a broker of freight over time.




The Six-Step Process for Securing a License To Broker Freight




We know that you're now wondering what the requirements are for becoming a freight broker. Plus, you also need to know the common processes for getting your license to broker freight. Well, Moving Authority has created the following six-step process for becoming a broker. If you have any questions about a step, do not hesitate to give us a call. We can answer all your questions about how to become a broker and receive your license.




Step One: Enroll in a Broker Training Course




There’s no law stating that you have to enroll in a broker course or training program. But if you do so, you’ll get on the fast-track toward becoming a broker with a license. The key is to not enroll in a broker of freight course that will waste your time and money. That’s why Moving Authority has created our own freight broker license course. You can find more information about it on our website. Our online training course will teach you all the basics of how to get your license. In a short amount of time, you can master many aspects related to operating as a broker of freight.




Step Two: Select a Business Structure




Choosing the right business structure is crucial to your success as a US broker of freight. There are three different types of freight broker businesses. There's a corporation, partnership, and sole proprietorship. Think about which of these appeals to you the most before you get your license. 



Every broker-business structure has its own documentation requirements. Plus, there are different tax implications for every subset for a broker of freight. A business structure can have many long-term impacts on a broker and also a company. That's why it's best for new brokers to receive guidance from a tax professional. Also, a business attorney can assist a broker that’s in need of a freight license.




Step Three: Fill Out an Application for Broker Authority




The next step toward getting a license is to apply for broker authority. You have to do this by filling out FMCSA Form OP-1. Then, you will need to submit Form OP-1 to the FMCSA. Do not despair if the broker authority form seems complicated. You can contact Moving Authority for help filing the FMCSA OP-1 Form. 



Here’s a key decision that every new broker must make before filing. You have to decide if you're applying as a Broker of Property (except Household Goods). Or, if you're applying to the FMCSA as a Broker of Household Goods. But here’s the catch. You can apply for both at the same time. Again, feel free to call Moving Authority if you have questions about this. As of now, the FMCSA charges a $300 filing fee. The fee is $600 if you select both broker designations. We recommend that you apply for broker authority online. That’s because the FMCSA will then provide you with a motor carrier number right away. You’ll then need to use your MC number to complete the license application process.




Step Four: Secure a Surety Bond




The FMCSA demands that all broker applicants must have a surety bond to get a license. And there are many FMCSA rules and regulations associated with having a surety bond. The required amount of a surety bond for US freight brokers is $75,000. But do not assume that a new broker has to raise money alone. You have the option of working with a surety company. The surety company can put up a bond for you. All a new broker has to do in exchange is provide a small premium. Unless rules get broker, no one will have to pay anything else.



It’s crucial that a new broker not break the terms of the bond. If that happens, the broker can get sued up to the limits of a new bond. The surety company would then pay the claim. But the broker would have to reimburse the surety company. And the reimbursement would cost a lot of money. This is an example of why a broker must follow all FMCSA rules and regulations.




Step Five: Find a Process Agent




A broker of freight must have a process agent in each state with written contracts. Say that a legal issue takes place that involves your business. The process agent is a person who will accept court papers that get served to you. There are freight brokers that have individual agents within every state. But other brokers of freight decide to choose one national company. This way, the company can provide process agent services all across the country at once. 



So, how do you declare who you select as your process agents? You’ll need to file a BOC-3 form through the FMCSA. Please contact Moving Authority if you need help doing this. Our FMCSA registrations services can help you file any form, including the BOC-3. Plus, we can go process agent by process agent for any new broker of freight. This way, you can find the process agent that’s right for you and your new business.




Step Six: Complete FMCSA Registration Through the URS (Unified Registration System)




You’re almost there. This is the final step toward securing your license to broker freight. You now must register with the FMCSA through URS. This refers to the FMCSA Unified Registration System. That system will combine all needed forms into one single online application form. This way, you can complete registration with the FMCSA to get your license. 



Once again, please call Moving Authority if you need help filing under the FMCSA URS website. Once you complete URS registration, the FMCSA will grant you with authority. In this case, you now have a license to broker freight across the country. The key is to make sure you understand regulations in each state that you do business in.




Contact Us Today To Get Your License for Brokering Freight




Ready to get your license and start brokering freight all across the country? If so, the Moving Authority team is here to assist. We can help you out with every step on this page. From filing FMCSA forms to finding the right BOC-3 process agents. All you've got to do is give us a call at any time. One of our freight experts can put you on the right track and help you get your license. Our experts look forward to helping you get your license for brokering freight ASAP.

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The trucking industry has made a large historical impact since the early 20th century. It has affected the U.S. both politically as well as economically since the notion has begun. Previous to the invention of automobiles, most freight was moved by train or horse-drawn carriage. Trucks were first exclusively used by the military during World War I.   After the war, construction of paved roads increased. As a result, trucking began to achieve significant popularity by the 1930's. Soon after trucking became subject to various government regulation, such as the hours of service. During the later 1950's and 1960's, trucking accelerated due to the construction of the Interstate Highway System. The Interstate Highway System is an extensive network of freeways linking major cities cross country.

The Motor Carrier Act, passed by Congress in 1935, replace the code of competition. The authorization the Interstate Commerce Commission (ICC) place was to regulate the trucking industry. Since then the ICC has been long abolished, however, it did quite a lot during its time. Based on the recommendations given by the ICC, Congress enacted the first hours of services regulation in 1938. This limited driving hours of truck and bus drivers. In 1941, the ICC reported that inconsistent weight limitation imposed by the states cause problems to effective interstate truck commerce.

A trailer is not very difficult to categorize. In general, it is an unpowered vehicle towed by a powered vehicle. Trailers are most commonly used for the transport of goods and materials. Although some do enjoy recreational usage of trailers as well. 

The public idea of the trucking industry in the United States popular culture has gone through many transformations. However, images of the masculine side of trucking are a common theme throughout time. The 1940's first made truckers popular, with their songs and movies about truck drivers. Then in the 1950's they were depicted as heroes of the road, living a life of freedom on the open road. Trucking culture peaked in the 1970's as they were glorified as modern days cowboys, outlaws, and rebels. Since then the portrayal has come with a more negative connotation as we see in the 1990's. Unfortunately, the depiction of truck drivers went from such a positive depiction to that of troubled serial killers.

Another film released in 1975, White Line Fever, also involved truck drivers. It tells the story of a Vietnam War veteran who returns home to take over his father's trucking business. But, he soon finds that corrupt shippers are trying to force him to carry illegal contraband. While endorsing another negative connotation towards the trucking industry, it does portray truck drivers with a certain wanderlust.

"Six Day on the Road" was a trucker hit released in 1963 by country music singer Dave Dudley. Bill Malone is an author as well as a music historian. He notes the song "effectively captured both the boredom and the excitement, as well as the swaggering masculinity that often accompanied long distance trucking."

A semi-trailer is almost exactly what it sounds like, it is a trailer without a front axle. Proportionally, its weight is supported by two factors. The weight falls upon a road tractor or by a detachable front axle assembly, known as a dolly. Generally, a semi-trailer is equipped with legs, known in the industry as "landing gear". This means it can be lowered to support it when it is uncoupled. In the United States, a trailer may not exceed a length of 57 ft (17.37 m) on interstate highways. However, it is possible to link two smaller trailers together to reach a length of 63 ft (19.20 m).

A business route (occasionally city route) in the United States and Canada is a short special route connected to a parent numbered highway at its beginning, then routed through the central business district of a nearby city or town, and finally reconnecting with the same parent numbered highway again at its end.

Without strong land use controls, buildings are too often built in town right along a bypass. This results with the conversion of it into an ordinary town road, resulting in the bypass becoming as congested as the local streets. On the contrary, a bypass is intended to avoid such local street congestion. Gas stations, shopping centers, along with various other businesses are often built alongside them. They are built in hopes of easing accessibility, while home are ideally avoided for noise reasons.

Full truckload carriers normally deliver a semi-trailer to a shipper who will fill the trailer with freight for one destination. Once the trailer is filled, the driver returns to the shipper to collect the required paperwork. Upon receiving the paperwork the driver will then leave with the trailer containing freight. Next, the driver will proceed to the consignee and deliver the freight him or herself. At times, a driver will transfer the trailer to another driver who will drive the freight the rest of the way. Full Truckload service (FTL) transit times are generally restricted by the driver's availability. This is according to Hours of Service regulations and distance. It is typically accepted that Full Truckload carriers will transport freight at an average rate of 47 miles per hour. This includes traffic jams, queues at intersections, other factors that influence transit time.  

A properly fitted close-coupled trailer is fitted with a rigid tow bar. It then projects from its front and hooks onto a hook on the tractor. It is important to not that it does not pivot as a draw bar does.

Implemented in 2014, the National Registry, requires all Medical Examiners (ME) who conduct physical examinations and issue medical certifications for interstate CMV drivers to complete training on FMCSA’s physical qualification standards, must pass a certification test. This is to demonstrate competence through periodic training and testing. CMV drivers whose medical certifications expire must use MEs on the National Registry for their examinations. FMCSA has reached its goal of at least 40,000 certified MEs signing onto the registry. All this means is that drivers or movers can now find certified medical examiners throughout the country who can perform their medical exam. FMCSA is preparing to issue a follow-on “National Registry 2” rule stating new requirements. In this case, MEs are to submit medical certificate information on a daily basis. These daily updates are sent to the FMCSA, which will then be sent to the states electronically. This process will dramatically decrease the chance of drivers falsifying medical cards.

The basics of all trucks are not difficult, as they share common construction. They are generally made of chassis, a cab, an area for placing cargo or equipment, axles, suspension, road wheels, and engine and a drive train. Pneumatic, hydraulic, water, and electrical systems may also be present. Many also tow one or more trailers or semi-trailers, which also vary in multiple ways but are similar as well.

Business routes generally follow the original routing of the numbered route through a city or town. Beginning in the 1930s and lasting thru the 1970s was an era marking a peak in large-scale highway construction in the United States. U.S. Highways and Interstates were typically built in particular phases. Their first phase of development began with the numbered route carrying traffic through the center of a city or town. The second phase involved the construction of bypasses around the central business districts of the towns they began. As bypass construction continued, original parts of routes that had once passed straight thru a city would often become a "business route".

In 1984 the animated TV series The Transformers told the story of a group of extraterrestrial humanoid robots. However, it just so happens that they disguise themselves as automobiles. Their leader of the Autobots clan, Optimus Prime, is depicted as an awesome semi-truck.

Unfortunately for the trucking industry, their image began to crumble during the latter part of the 20th century. As a result, their reputation suffered. More recently truckers have been portrayed as chauvinists or even worse, serial killers. The portrayals of semi-trailer trucks have focused on stories of the trucks becoming self-aware. Generally, this is with some extraterrestrial help.

In 1933, as a part of President Franklin D. Roosevelt’s “New Deal”, the National Recovery Administration requested that each industry creates a “code of fair competition”. The American Highway Freight Association and the Federated Trucking Associations of America met in the spring of 1933 to speak for the trucking association and begin discussing a code. By summer of 1933 the code of competition was completed and ready for approval. The two organizations had also merged to form the American Trucking Associations. The code was approved on February 10, 1934. On May 21, 1934, the first president of the ATA, Ted Rogers, became the first truck operator to sign the code. A special "Blue Eagle" license plate was created for truck operators to indicate compliance with the code.

In order to load or unload bots and other cargo to and from a trailer, trailer winches are designed for this purpose. They consist of a ratchet mechanism and cable. The handle on the ratchet mechanism is then turned to tighten or loosen the tension on the winch cable. Trailer winches vary, some are manual while others are motorized. Trailer winches are most typically found on the front of the trailer by towing an A-frame.

There many reasons for moving, each one with a unique and specific reason as to why. Relocation services, employee relocation, or workforce mobility can create a range of processes. This process of transferring employees, their families, and/or entire departments of a business to a new location can be difficult. Like some types of employee benefits, these matters are dealt with by human resources specialists within a corporation.