
Learn how to get a freight broker license and move freight in a few easy steps.
The freight industry is continually expanding and having a freight broker license gives you the authority to earn money by moving truck freight without actually hauling it.
A freight broker license allows freight brokers the authority to move freight by connecting shippers with carriers, essentially brokering the deal. Freight brokers are hired by shippers who have freight that needs to be hauled from one location to another.
Let’s say there is a furniture warehouse in Texas that needs to ship its freight to department stores in Georgia. The warehouse representative is the shipper, who needs to find a carrier to haul the load. This is where the freight broker comes in.
With a freight broker license you are paid by the shipper to find a carrier to haul the load. You can use your broker authority to find qualified carriers on load boards like Truckloads by either posting information about your freight or by doing a truck search to find a potentially interested carrier.
To get a freight broker license and have broker authority you must apply for a US DOT number with the Department of Transportation first. Once approved, use your DOT Number to get a Motor Carrier (MC) number and broker authority with the Federal Motor Carrier Safety Administration (FMCSA). This is approved through the completion of the OP-1 Form which includes a $300 application fee.
Having broker authority isn’t the only requirement to become a freight broker. You will need to decide if you want to start a freight broker company or if you want to work for an established brokerage company.
Regardless of your choice, you should be sure to do ample research in order to better understand the nuances of the trucking industry and which options are best for you. We’ve provided a step-by-step guide to help you become a freight broker.




10 Safety Tips for Hitting the Road this Winter <span style="font-weight: 400;">Navigating the road during winter can be difficult even for expert truckers. During this season, truckers have to put up with icy roads, poor visibility, and reduced traction while driving a big rig. However, implementing preventive safety precautions can help you sail smoothly throughout winter without any major problems.</span>
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<h3><b><i>Vehicle Inspection</i></b></h3>
<span style="font-weight: 400;">Before anything else, you need to ensure that your truck is in the best shape to survive the tough conditions of the winter season. See your tire pressure, antifreeze levels, and engine oil before your trip. If you have the time and the means, have a mechanic inspect your vehicle. This will help ensure that your vehicle can withstand the harsh conditions during winter.</span>
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<h3><b><i>Watch Your Speed</i></b></h3>
<span style="font-weight: 400;">Accidents during the winter season mostly happen due to overspeeding. Driving through an icy road can result in poor traction. This is why it’s wise to compensate by reducing your speed. Going easy on your accelerator also gives you a longer reaction time should things go south. </span>
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<h3><b><i>Allot Extra Space</i></b></h3>
<span style="font-weight: 400;">While driving on wet roads, stopping distance is usually twice more than normal. However, stopping distance increases to 10 times more than usual on icy roads. This is why you have to leave lots of room between your truck and the vehicle in front of you. Doing this will keep you out of harm’s way during accidents.</span>
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<h3><b><i>Be Smooth</i></b></h3>
<span style="font-weight: 400;">Don’t do any sudden movements on icy roads. Refrain from sudden brakes, acceleration, etc. Should you find yourself in a sticky situation, lightly pump your brakes. Be sure to keep your speed consistent. Avoid doing anything that will reduce your traction on a slippery, icy road.</span>
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<h3><b><i>Pay Attention to Tire Spray</i></b></h3>
<span style="font-weight: 400;">One quick way to assess the road’s condition is to observe the water coming off the tires of surrounding vehicles. More water indicates wetter roads. Meanwhile, less tire spray indicates icy roads. This should prompt you to exercise more caution while driving. </span>
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<h3><b><i>Light the Way</i></b></h3>
<span style="font-weight: 400;">Visibility can decrease relatively due to poor weather conditions. Don’t forget to turn your headlights on while driving. This allows other drivers to keep a safe distance from your truck. </span>
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<h3><b><i>Be Evasive</i></b></h3>
<span style="font-weight: 400;">Be evasive on snow-covered roads. This is relatively better instead of sudden and hard braking. Decelerate your truck slightly and carefully maneuver through obstacles to avoid collisions.</span>
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<h3><span style="font-weight: 400;"> </span><b><i>Avoid Extreme Conditions</i></b></h3>
<span style="font-weight: 400;">If the weather seems too severe, pull over. There’s no point in risking a drive during extreme weather conditions. Your safety should always come first. If the weather gets too extreme, find a safe way to get off the road and wait until it’s safe enough to drive. </span>
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<h3><b><i>Prepare Yourself</i></b></h3>
<span style="font-weight: 400;">After you’ve ensured that your vehicle is ready for winter, it’s time to prep for the cold weather. Be sure to carry warm clothes and thick blankets. It won’t hurt to bring miscellaneous items like a flashlight, shovel, matches, traction devices, etc. You would never know when these things may come in handy. It’s also to make sure you have roadside assistance for trucks should you encounter trouble on the road.</span>
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<span style="font-weight: 400;">During a whiteout blizzard, visibility is compromised. This will make it difficult to see traffic lights and road signs. Stay safe by looking twice before proceeding on intersections or one-way streets.</span>
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<span style="font-weight: 400;">Truckers are constantly being tested on the road. As winter begins, it brings with it obstacles that make driving challenging. During this season, it’s important to exercise caution while driving. These tips can help prevent accidents and mishaps from happening during the drive.</span>
Industry Update - November 8, 2019 <h4><strong>By Paul DeCoste</strong></h4>
<h3><strong>Did you Know?</strong></h3>
Less than two weeks ago <a href="https://www.macktrucks.com/trucks/anthem/">Mack unveiled their brand new</a>, all-black, Mack Anthem truck. Debuted at the North American Commercial Vehicle in Atlanta on October 28<sup>th</sup>, this new model catches eyes with an all-black bulldog hood ornament, a spacious interior and much more. Mack promoted the truck with the phrase “Back in the Black”, a good omen to the goal of making good money as a driver. Truck fan or not, this blacked out semi is a beast.
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<h3><strong>Trucking Tip of the Week</strong></h3>
Its that time of the year, watch out for snowy and impassible roads. <a href="https://cdllife.com/2019/trucker-was-stuck-on-snowy-road-for-three-days-before-calling-wyoming-police/">This driver was stuck on a two-lane roadway for three days before calling local police for help</a>. Make sure your truck is prepped for icy roads and freezing conditions.
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Trucker Path’s weather feature on the navigation app can help you out here as well!
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<h3><strong>Industry Update</strong></h3>
Owner-operators in California are using this week and next <a href="https://www.supplychaindive.com/news/owner-operators-truck-drivers-plan-protests-over-ab5/566626/">to protest the new Assembly Bill 5</a> that has the potential to eliminate lots of owner-operator jobs in the state. Although there doesn’t seem to be any centralized leadership with the protests, there were 50 people protesting outside of the State Senator’s office on Monday.
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The controversial AB 5 bill will require owner-operators to be classified as employees with a trucking company, rather than expand their own small businesses as a contractor. This bill is allowing exemptions for certain contractor jobs like freelance writers and graphic designers. Owner-operators are looking to obtain similar exemptions.
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<h3><strong>Laws and Regulations</strong></h3>
The owner of <a href="https://www.freightwaves.com/news/new-jersey-trucking-owner-slapped-with-two-year-sentence-for-2-million-tax-evasion-scam">several New Jersey trucking companies, Tito Viteri</a>, was recently sentenced to two years in federal prison for a massive tax avoidance scheme. He is responsible for evading personal and corporate taxes for more than nine years. Tito owned eleven trucking companies which were collectively known as Viteri Trucking Companies.
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In total, Tito evaded $2.3 million worth of taxes and is now paying the price for it.
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<h3><strong>Hours of Service Update</strong></h3>
Regulators accepting comments on a petition to exempt small carriers from the upcoming ELD mandate. If you have any suggestions on how the FMCSA should approach the new ELD mandate, find more information and submit your response at this link:
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<a href="https://www.joc.com/trucking-logistics/labor/challenge-eld-rule-resurfaces-fmcsa_20191105.html">https://www.joc.com/trucking-logistics/labor/challenge-eld-rule-resurfaces-fmcsa_20191105.html</a>
Factoring Costs - Comparing Factoring Rates [p] Freight factoring can be advantageous to your trucking company but there are some factoring costs that are misleading and comparing factoring rates as well as their offer details can help you maximize earnings. [/p]
[h2] Factoring Costs [/h2]
[p]There is more to the factoring cost than the factoring rate offered in<a href="https://truckerpath.com/blog/freight-factoring/"> freight factoring</a>. Freight factoring provides owner-operators an opportunity to better manage their cash flow and eliminate waiting to get paid. Factoring companies offer rates based on a variety of factors but there are several things you must understand when talking about the factoring cost.[/p]
[p]Some require specific qualifications a client must meet to earn the best possible factoring rate. Others might require a specific volume of loads or long-term commitments (not quite 'til death do us part but nonetheless). Sometimes the lowest factoring rate won't provide you with the lowest cost to factor. [/p]
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[h2] Comparing Factoring Rates [/h2]
[p]When comparing factoring rates a 1.5 percent factoring rate can cost more than 3.5 percent rate. Yes, you read that correctly. It's entirely possible that a lower factoring rate can actually cost you more. Let's say Factoring Company A who is offering a 1.5% rate and Factoring Company B is offering 3.5%. You're more inclined to factor invoices with Factoring Company A because the rate is better right?[/p]
[p]While Factoring Company A's rate is lower, the overall cost to factor is not. This is due to fine print in Factoring Company A's contract where it included a variety of fees and commitments from you.[/p]
[p]By breaking down the additional factoring fees and including them with the factoring rate we can compare the true factoring cost and decide which option is best for you. In this case, Company B would be the best freight factoring company for your trucking business. [/p]
[img src="/uploads/2017/06/factoringrates.png" alt="My image"]
[h2] Understanding the Differences When Comparing Factoring Rates [/h2]
[p]Not all factoring rates are created equal. If you are interested in using a freight factoring company to help your cash flow, comparing factoring rates and determining the actual factoring cost can save you thousands. Some factoring companies aren't transparent and hope you won't see through some of their additional fees that lead to a higher factoring cost to you.
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[p]Remember to always read the <a href="https://truckerpath.com/blog/hidden-costs-to-factor/">fine print to avoid those hidden fees</a> in your factoring contract and understand the details that could lead to additional fees before committing to factor with a company. [/p]
[p]Factoring companies like Trucker Path InstaPay offers non-recourse factoring with no commitment or fees. IntsaPay is completely transparent and you can easily get paid in a day by factoring right from your phone. It's perfect for owner-operators with a simple flat rate and no additional costs. [/p]
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