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Why Freight Brokers Need Formal Training

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Why Freight Brokers Need Formal Training

Freight brokers are the logistical key between shippers and carriers. Being a freight broker is a rewarding, but challenging career. However, you need a lot of skills and knowledge in order to become a successful transportation broker. Keep reading to learn why freight brokers need formal training.

Freight Brokerage 101

According to Entrepreneur magazine, there are legal requirements for anyone who starts a brokerage business. For example, all new freight brokers must register with the Federal Motor Carrier Safety Administration (FMCSA). This involves filing forms, paying fees, designating legal agents and getting a $75,000 bond or trust fund. In addition to this, a small business owner will need to obtain a local business license and a state operating permit. A training program will help the freight broker understand these complex legal requirements. Keep in mind that any mistakes on these permits could result in legal problems down the road.

Second, freight brokers must have financial training and management skills. For example, the bond or trust fund must be established as part of the permit process. The purpose of this is to prove that the freight broker is responsible and that they have access to money in order to pay any claims. However, freight brokers who don’t understand finances will have a hard time convincing clients, the bonding company and even their own bank that they are competent. Freight broker training will
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