Looking for some info on becoming a broker or dispatcher from home!

The cash bond must be posted first. There are companies that do these type of bonds. Either you or a bonding company will need to post the bond in full before authority will be granted. The last time I checked it was about 10% per year. You will likely need to post the equivalent in assets to get the bond according to what my insurance company told me. You may be able to put up cash at a bank or get a line of credit through your bank for a smaller fee that will meet the qualification. When you get a line of credit with a bank you pay an annual fee in addition to any interest on funds used. The fmcsa has a list of those who write bonds, but you could probably do as well through your insurance company or bank. Keep in mind that you will likely need to pay carriers before you are paid when you broker freight. You could factor your receivables, but that is another expense. I would suggest that you start as a dispatcher for your family, learn more about what you are doing before getting broker authority. It is a lot of money to put up unless you have the business to support it. Even at 10%, it will cost you $7,500/year at 10% of the bond. You could check with whom you have your motor carrier insurance and they might have a source for the bond.

 

Thanks for the tip..I'm not the orignal poster but am looking to get my own authority. I have 2 trucks one we team and one we are looking for a driver. When wwe get our own authority ill be looking for direct shippers but load boards in the mean time to keep the 2 trucks moving. If I hire an owner operator to lease onto my company,meaning he has my business name mc &dot number on his truck, I can use load boards to keep him moving correct? I wouldn't need a broker license to do this? When would I need that broker license?

 

When you have freight that you want to move using someone elses authority

 

So if I go onto load boards and see a truck posted I can't find a load for him unless I have the authority? Even if its on load boards and I take 10% right? He/she would have to be leased to me correct

 

No, that is different.

If you are contracted to a shipper to move his freight, unless you have a brokers authority, you have to move it with your equipment, ie. direct shipper etc. If you are going to move it on someone else's truck, you have to have a broker authority.

What you are talking about is dispatching, and you would use the owner-ops authority to enter into contracts with the brokers or shippers etc.

 

Let me clarify to make sure we are on the same page.. it'll be my two trucks, two trailers, my authority. I keep my trucks moving through load boards while I search for a direct shipper route. Later on my buddy who is an owner-operator wants to work for me. He doesn't have his own authority.. can I get a load for him through load boards, I'm assuming yes but he will have to put my company name and mc dot info on his truck meaning he is leased to me. Can I book a load for him without him being leased onto me? He just has a truck and wwants me to find him loads..than I'm gonna need that broker license correct or no?

 

Ok, for your two trucks and two trailers, you don't need a broker authority.

For your friend, if he is going to lease on to you, then no, you don't need a broker authority.

If he gets his own authority and you want to find him freight, you have to do so under his own authority using a power of attorney type clause etc.

You can not secure freight for your two trucks, and then put it on his truck with his authority, he would have to be leased onto you.

Make sense?

 

Yes gotcha; so in order for drivers with their own trucks to lease onto me ill have to make it worthwhile as in keep them rolling? At the start of business I'm looking at having one driver drive my truck and I drive other, using load boards til we get a dedicated route from a shipper..would it be wise to find an owneroperator to lease onto my company and find loads for us all through loadboards in the beginning?

 

The ink on the new highway bill is hardly dry, yet one transportation group already is pushing for an amendment.

The Association of Independent Property Brokers & Agents is lobbying to repeal the $75,000 bond requirement for brokers and freight forwarders that's in the law Congress passed in June.

The provision is due to go into effect next July. Between now and then, the Federal Motor Carrier Safety Administration must complete a rulemaking to implement aspects of the law.

http://www.truckinginfo.com/news/news-detail.asp?news_id=77938&news_category_id=3

 

We do monthly at $250 plus a yearly fee of $950. Not sure how the new bond of $75000 will work yet