A great way to maximize the money you can make in the trucking industry is to become a freight broker. It allows trucking companies to negotiate cargo hauling with other freight companies. With the help of truck brokerage software, it makes the process much easier. However, if you’re interested in expanding your business, you should learn a few things to start this profitable addition to your business.
Why Become a Broker
Once in a while you may get a call for a big load, but you realize that all your trucks are already on the road with other loads. This is where truck brokering comes into play. If you have a brokerage license from the FMCSA, you can sub that load out to another trucking company and take a small commission. Typically, a trucking company can only negotiate their own freight, which gives them a two-part opportunity cost: the lost job itself, and the brokering fee they could have gathered for arranging alternate cargo delivery. So how do you get a brokerage license?
Broker Authority Requirements
You don’t have to take an exam or have a background check to receive your freight brokerage authority. To start, you’ll need to obtain proof of insurance of $75,000 in the form of either a surety bond (obtained through an insurance company) or a trust fund.
When you have this insurance, you can fill out and send the FMCSA’s OP1 Application for Broker Authority. You must also fill out the BOC-3 form, which designates your process agent, or legal representative.
After submitting your application, wait for the FMCSA to issue a motor carrier number. This will allow you to start brokering loads.
Why Motor Carrier HQ
After you submit our simple online application, we will submit the required documentation to the FMCSA and get the MC number issued for you. Our process is quick and efficient and allows us to provide you the same service as our competitors for less than they can. You don’t have to worry that your application may contain mistakes that could delay your grant date or have the FMCSA reject it altogether. With Motor Carrier HQ, we can save you time and get you on your way to obtaining your broker authority.