The expanding world economy relies increasingly on the ability of companies which produce products to connect with companies that can ship those products. More and more firms are beginning to specialize in only their fields of production, creating an opening for driven and creative individuals to assist with brokering their freight transport needs.
Below, you'll find a guide to some of the requirements for becoming a licensed freight broker in the United States. Having this knowledge at the beginning of your training will allow you to have a clearer idea of your goals, guaranteeing that you can work toward a tangible end point and have an understanding of the excitement that awaits you in the future.
Department of Transportation Registration
The United States Department of Transportation takes its role as a regulator of interstate commerce very seriously. In attempting to control the flow of traffic on the interstates, the DOT requires all licensed operators to acquire a registration number that will immediately identify the responsible party in the event of an incident.
Even if you're not planning on transporting any freight personally, it's still important that your brokerage company has a registered DOT number. Many other government agencies, such as the Federal Motor Carry Safety Administration, use this number for tracking and reference, and acquiring it should streamline your regulation process.
Surety Bond
In your role as a freight broker, you will be connecting individuals and companies with shipping firms who will agree to transport their products for a price. Shipping space, however, is highly valuable, and unfortunate situations can arise where a client fails to pay the agreed fee.
A surety bond will provide you valuable protection that allows you to make a shipping company whole in the event that one of your brokerage clients comes up short on their payments. Rather than leaving yourself exposed to this liability, agreeing to a reasonable bond should make a minimal impact on your bottom line.
Broker Authority
Of course, perhaps the most important document to have in your possession is a legal recognition that you have the authority to broker freight. A licensed freight broker will immediately have a leg up on competitors when it comes to accessing potential clients and business opportunities, and your license will also guarantee that you've received the necessary training to avoid fraud and other difficulties. Your DOT number will be referenced on your application for your authority license as well, highlighting another one of its important uses.
Share3 June 2015
Many travelers face the same dilemma while on vacation -- is it better to rent a car or take taxis? I made some guidelines for myself to determine which transportation option to use during each vacation. First, I always rely on taxi-cabs in large cities, as I can walk many places and driving in heavy traffic is not for me. Rental cars are best for quieter locations. Second, I determine what is on my itinerary, if I have one at all. If I have a strict plan of where I need to go and when, then I take a cab. If I don't have a tight, planned-out schedule, then a rental car is more useful for driving around and checking out scenery. I created this blog to encourage others to stop stressing over which transportation option you choose and when. Make your own guidelines to make the choice easier.