Freight brokers are responsible for searching for shippers who need cargo transported from one place to another. Freight brokers must also search for trucks to move the cargo and contact the shippers to let them know that they’ve found trucks. Freight brokers act as middle men for each party and must use cost-effective measures to decide on suitable rates for both parties.
How do you become a freight broker in Texas?
Gain knowledge in the freight broker industry: The easiest way to go about that is to take freight broker training classes led by a specialist in the field. Such training can help you get the basics, learn how to use the software you need, and gain some business know-how.
Obtain a USDOT number: When you feel confident enough to jump into the industry, you have to start with the legal side of the process. Your first step is to get a USDOT number (US Department of Transportation). It is needed in order to complete your registration with the FMCSA.
Meet the freight broker license requirements: The most important requirements include getting a freight broker bond, cargo insurance, and injury and property damage insurance. You also need to pay a $300 license fee.
Get a freight broker bond: The freight broker bond, known as BMC 84, is one of the main licensing requirements. The purpose of this security measure is to guarantee that logistics professionals will comply with all relevant laws.
Legalize a Texas agent for your brokerage: While most other licensing steps are the same for brokers from all states, if you want to do business in Texas, you need to designate a Texas process agent. The FMCSA requires brokers to have such an agent for each state that they have an office in or sign contracts.
This is done by completing Form BOC-3 (Designation of Agents for Service of Process). If you are planning to operate across states, you will need to designate agents for each state.
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