How to Become a Freight Broker in Arizona – Get Your License
Cargo loads in the form of food, equipment, and clothing are regularly shipped throughout the nation. For this to be possible, shippers and manufacturers contact Freight Brokers, who then look for a suitable transportation company, called carriers, to do the job. Freight Brokers typically have an extensive database of carrier companies on hand or comb through online and in-person conversations to find the perfect carrier that can accommodate the shipper’s load-taking into consideration the type of cargo to be shipped, dates of delivery, and price range.
Freight Brokers are excellent communicators, gathering pertinent information regarding the shipment and mediating talks about shipping terms and rates with both the client and carrier company. They have excellent time management skills and are highly organized, as their job requires a good amount of planning and overseeing the shipment process. Remaining calm during unexpected situations is also an excellent quality to have for these professionals. If you are interested in becoming a Freight Broker, here is a list of the essential duties and responsibilities you will have to perform on a day-to-day basis:
- Schedule client appointments to talk about specifics of the cargo load
- Conduct different methods to search for suitable carrier companies that offer the appropriate services
- Negotiate the shipment price, making sure that it is fair for both parties
- Finalize every little detail of the shipment, such as the date and time of pickup and drop-off
- Keep a close eye on the ongoing shipment, ensuring that everything is done correctly and on-time
- Update both the shipper and the carrier on the current status of the shipment
- Create invoices and oversee payment processes
Certifications and Licensing for Becoming a Freight Broker in Arizona
As of this writing, there are no specific educational requirements to become a Freight Broker in Arizona. Nevertheless, most employers will be hiring applicants who have at least a High School or GED diploma. Even though it is not a necessity, attending training and relevant classes would be an advantage if you plan on getting into the industry.
Freight Broker certifications are another way to earn valuable insights and impressive credentials in the industry. Although not a requirement to practice in this profession, applying for one will certainly help you learn all you can about the job and make you stand out from others in the field. The Certified Transportation Broker (CTB) is the highest and most widely recognized certification for brokers in the industry. It is awarded by the Transportation Intermediaries Association (TIA).
However, when it comes to licensing, all Freight Brokers throughout the country must obtain a license from the Federal Motor Carrier Safety Administration (FMCSA). This organization within the U.S. Department of Tourism enforces rules and regulations, ensuring that carrier companies operate safely and efficiently. Obtaining your FMCSA Freight Broker license is a straightforward affair, and here are the steps you need to take:
- Applying for a USDOT (Department of Transportation) number through the Unified Registration System (URS) of the FMCSA is necessary for all new applicants.
- Obtain a Surety Bond (Form BMC-84) or Trust Fund Agreement (Form BMC-85) with an amount no less than $75,000.
- Designate a Process Agent and apply for their registration through FMCSA Form BOC-3. A Process Agent acts as the legal representative in the state where the broker will operate.
- Pay the $300 application fee and wait the required 4-6 weeks of processing time.
Where to Get Relevant Education in Arizona
Most of the training programs for Freight Brokers are fully online-based, which is convenient for those whose lifestyles are more appropriate for online learning. Here are some institutions around Arizona that offer relevant courses:
- Arizona Western College Continuing Education in Yuma, AZ, offers a fully online course in Freight Brokering. It tackles everything from the primary job duties of the profession to setting up and obtaining licenses for your brokerage office.
- Loadtraining – Freight Broker Training School in Phoenix, AZ, offers a comprehensive course on Freight Brokering that can be taken online or in-person in an intensive, hands-on five-day program.
- CS Group is a group of companies offering premier Freight Broker training. They have five-day, hands-on programs located in Phoenix, AZ.
Career Growth and Salary
A Freight Broker employed in the U.S. earns an average yearly salary of $54,880, or $21.04 an hour. The actual number varies depending on the Freight Broker’s experience and the commissions they earn every year. Higher-earning Freight Brokers have reported annual wages amounting up to $69,890.
According to data from the U.S. Bureau of Labor Statistics (BLS), about 95,600 Freight Brokers are currently practicing in the country as of this writing. The long-term growth rate for this occupation is at a national average of 10 percent, which means around 9,500 new Freight Broker jobs are opening up every year.
Working as a Freight Broker in Arizona
Freight Brokers are at the heart of every cargo shipment in the United States. Because of this, demands for competent professionals continue to be on the rise. Companies in Arizona are looking to hire qualified Freight Brokers in Tempe, Scottsdale, and Phoenix.