How do i start brokering?

If we had all tricks we would sell our trucks and broker ourselves

 

Hey man,

I got a lot of help from people starting up my brokerage, so I want to share the good karma around. I came into the trucking industry with a big ole goose egg in terms of experience. You will hear a lot of people say what you can and can't do, but it's honestly not rocket science so don't be discouraged.

The first thing I would do is go on the fmsca site and register yourself to get an authority to broker. The link is below

Registration

After you register as a new applicant you can tell them exactly what you want to do. In your case you will be doing applying for a freight brokerage which will require 3 things.

1) $300 fee to activate your authority
2) File your BOC-3
3) Get a $75,000 BMC-84 or BMC-85 bond/trust. (I would recommend the BMC-84 as many brokers recommended the same to me).

On a side note, if the application process gets hairy on the site. I would recommend using the online support at FMSCA. The link below is

Chat

They were very helpful whenever I had questions on getting started.

Once I got my authority and was legally able to run, I began a training course. I read many manuals, books, watched youtube videos, talked to truckers and brokers on how the trucking industry works. Even without experience, I learned a lot but it took many hours of work for me. You can get training manuals which explains the brokering process in great detail and was very helpful for me.

I would say your first steps should be to get your authority. Watch some youtube videos to get an idea of how brokering works. Then start reading, training, and most importantly find a broker who would be willing to take you under their wing. This is where you will learn the most. Some people prefer being a freight broker agent for a few months, but whatever is your cup of tea. Hope this helps and all the best to you sir.

 

I would also think about setting up a new LLC for your brokerage that's seperate from your carrier business. I say this because if you were to get into a lawsuit, they wouldn't be able to go after your trucks or vice versa.

 

Good post and I agree about starting a new LLC. I didn’t do that and now the process I’m starting of breaking them up is much harder now.

Also, you might consider getting contingent cargo and liability insurance to help protect your new baby brokerage.

Some shippers hold you liable for damages and then you must collect from the carrier. If you can’t collect from the carrier then you need backup insurance. If your customer doesn’t get paid then they could hold their payments to you, then all of a sudden your carriers are wanting paid and you don’t have the money to do it. Claims begin getting filed on your bond, they cancel you, and boom your out of business.

 

How do you get paid? what is the process in getting your money

 

can you recommend any insurance companies for cargo and liability for brokerage ?

 

probably you need to have some sort of a broker package? any examples ?

 

Show up at a customer with a load.

Eyeball his entire property, see if you see anything staged going somewhere.

Hey you wants me take that out of here? How much?

That really throws them for a loop. I tell you they sit there and eyeball me. How DARE I open my mouth like that.

Then they make calls.

The company is so pleased as punch. Never figure it out.

I shudder to think some of the most critical and valued commerce to our Nations's existiance is reduced to the word "That"