Becoming a Freight Broker in Kentucky – Get Your License
Freight Brokers are an essential part of the transportation industry in the United States. Competent Freight Brokers are in very high demand, with manufacturers wanting to ship tons of cargo loads across state lines. These professionals find appropriate carrier companies to accommodate the shippers and take charge of the whole shipment process. Some factors to consider when looking for a suitable transport company are their ability to cater to the shipper’s exact specifications and their budgets and constraints.
If you are planning to enter the world of Freight Brokering, there are some essential things you should know. Although it takes hard work and dedication to become a Freight Broker, you will be rewarded with a lucrative and fulfilling career in helping to transport essential goods throughout the country. Effective communication with both clients and carriers is of the utmost importance, in addition to thorough planning and organization skills. Here are several more qualities every Freight Broker should possess:
- Strong communication skills to understand client needs and successfully negotiate pricing with carrier companies
- Good time management skills
- Meticulous planning and organization abilities
- The capacity to remain calm and level-headed when unexpected situations arise
- The ability to make quick and effective decisions
Freight Broker Licenses and Certifications in Kentucky
As with many other states, Kentucky doesn’t require a state-specific license for Freight Brokers to operate in the area. Instead, all professionals must apply for a license from the Federal Motor Carrier Safety Administration (FMCSA), the nationwide organization that generates and enforces rules and regulations to ensure that carrier companies operate safely and efficiently. Here are the steps needed to obtain this Freight Broker license:
- Apply for a USDOT number through the Unified Registration System (URS) for those who are applying for the first time
- Obtain a Surety Bond (Form BMC-84) or Trust Fund Agreement (Form BMC-85) worth $75,000 or higher
- Appoint a Process Agent and have them apply for registration through FMCSA Form BOC-3 (A Process Agent is a legal representative in the state where you will be operating as a broker.)
- Pay the $300 application fee and wait the standard 4-6 weeks processing time
Obtaining a certification is also not required to practice in this profession, but training for and earning a Freight Broker certificate can be beneficial for aspiring brokers. Besides the expertise and valuable skills that you will gain from these programs, certifications also prove your competency within the high standards of the industry. The Transportation Intermediaries Association (TIA) offers courses that award a Certified Transportation Broker (CTB) certificate at the end, the most widely recognized certification for brokers in the U.S.
Relevant Freight Broker Education in Kentucky
To become a successful Freight Broker, attending training or enrolling in relevant classes is a necessity. These courses will help prepare you for the duties and responsibilities you will be expected to perform in the field and provide you with valuable industry contacts. Most programs for Freight Brokers are entirely on an online platform, making them more accessible and convenient to attend. Here are a couple of institutions around Kentucky to get you started:
- Eastern Kentucky University in Richmond, KY, offers an online Freight Broker training course. The comprehensive course is taught by seasoned professionals and includes the basics of working in the field.
- Western Kentucky University in Bowling Green, KY, offers an online course on Freight Broker training. Lessons include all the relevant skills and resources you will need to work as a Freight Broker or start your agency.
Career Outlook and Salary of Freight Brokers
According to the U.S. Bureau of Labor Statistics (BLS), there are around 95,600 professionals employed as Freight Brokers throughout the country. There are projected to be 9,500 new Freight Broker jobs every year as the growth rate for this career is at a national average of 10 percent for the years 2020 until 2030.
A Freight Broker in the U.S. makes an average hourly pay of $21.04, or $54,880 per year, excluding commissions and bonuses earned. Higher-earning Freight Brokers, who have been working in the industry for a good amount of years or run their own businesses, have reported annual wages amounting up to $69,890.
Freight Broker Opportunities in Kentucky
With more and more goods being shipped throughout the country every day, qualified Freight Brokers are always in high demand. Agencies and freight services in Kentucky are looking to hire competent professionals in Erlanger and Louisville.