Transportation Broker Education and Training

Getting started being a freight broker Online courses on being a freight broker claim all it takes is fax machine, phone and time. Not quite. You'll need a federal license and insurance at a minimum to be a freight broker.

I recommend:  The Federal Motor Carrier Safety Administration manages licensing for freight brokers. Price freight broker contingent cargo insurance with Navigators, Gales Creek, Allianz Global Risks, CNA Financial, and Travelers Companies.

Establishing credibility in the market as a freight broker Other than a license, you won't be really required by law to do much more. But shipper won't touch you with a 10-foot pole unless you can show you have broker authority and a surety bond.

I recommend:  Get your operating authority paperwork in order with the feds through the FMCSA site. Find a surety bond provider at the Surety & Fidelity Association of America, a trade group of bond companies, or consider creating a trust-fund agreement, which allows you to put up your (higher) own cash bond instead.

Before becoming a freight broker, get your finances in order Shippers are very wary of seat-of-the-pants freight brokers who take over their logistics but might not make it to the end of the week financially. Establishing financial credibility is as important as professional credibility as a freight broker.

I recommend:  Shipper use online credit-check services to vet freight brokers. Many offer "broker memberships" which will let freight brokers take control of records online. Take a look at RTS Credit, Truckload Credit, and 247 Credit. Red Book Transportation rates freight brokers on reliability.

Experience the industry first hand to build contacts as a freight broker One way to build a future business as full-fledged freight broker is to learn the ropes as an agent for a larger logistics provider.

I recommend:  Some of the bigger national freight logistics companies include Cardinal Logistics, Celadon, and of course package shippers like UPS, DHL and FedEx. Find a smaller, local freight broker to work for in the Transportation Intermediaries Association directory online. Landstar Carrier Group provides network support to freight broker agents starting out. For more, see the Business.com directory on freight brokers, freight broker training and LTL (less than a truckload) shipping.