There are several steps to become a freight broker for a major retailer. Many retailers work with freight brokers to efficiently ship, transport and distribute their goods. In fact, research suggests that this career path is projected to grow nearly ten percent in the upcoming years. As an aspiring freight broker, you should familiarize yourself with the steps to work with a major retail company like Walmart or Amazon. This way, you can enter the transportation industry to ship retailer goods affordably and reliably. Read on to learn how to become a freight broker for a major retailer.
Complete The Right Training
First, you should complete the right training to become a freight broker for a major retailer. Although not required, you should attend freight broker training classes to learn about the business. In school, you can take in-person classes to get hands-on freight broker experience. Or, take advantage of the self-study online training courses to work at your own pace. You can even purchase your own books and study material to get a head or reference in the future. In addition, these classes teach you about new industry trends, technology tools and different practices to operate your freight broker business. Surely, the first step to becoming a freight broker is completing the right training.
Register Your Company
Next, register your company to become a freight broker for a major retailer. You need to plan and strategically think about starting your business. Determine whether your business should be associated as a sole proprietor, partnership, or small limited liability corporation. By filing as an LLC, you can reduce your own personal financial risks. If you plan on conducting business with other people, you should start as a sole proprietorship or partnership. Once you select a business type, come up with a marketable company name that represents what you do. Don’t forget to check the United States Patent and Trademark Services to ensure your proposed name is not already used. Definitely, you must register the company to become a freight broker for a major retailer.
Apply For Broker Authority
Next, you should apply for broker authority to work with major retailers. Before you can apply for broker authority, you need your USDOT number. You can obtain this online through the Unified Registration System for free. Once you have your number, apply for broker authority with the FMCSA’s online registration system. Keep in mind that you have to pay a one-time fee of $300 to obtain this authority. After you receive your number and authority, you should determine your process agent. These agents can provide you with legal representation during the licensing and registration process. With the proper registration and licensing, you can develop partnerships as a freight forwarder. In short, apply for broker authority when working to become a freight professional with a major retailer.
Get A Freight Broker Bond
More so, you should get a freight broker bond to become a professional for a major retailer. This bond guarantees you’ll follow all the applicable rules and regulations regarding brokering. When applying for this bond, officials use your credit history and payment background to determine your bond premium costs. These costs constitute your annual payments for the $75,000 total bond amount. If your credit score is above 700, plan on paying around $1,000-2,000 each year. With a score under 700, you’ll typically pay anywhere from $2,500-4,000. Certainly, you need a freight broker bond to work with major retailers.
Invest In Insurance
Now, invest in insurance to become a freight broker for a major retailer. You need insurance to show major retailer you are professional in your field. Purchase contingent cargo and general reliability insurance to secure ample protection as a freight broker. To access these kinds of insurance, you must fill and submit form BMC – 34 for financial loss and damage. In addition, you should fill out form BMC – 91 or 91X to cover property damages, personal injuries, and the restoration of the outdoor environment. Typically, this process takes approximately 3 weeks to fully complete. Also, you should consider a liability insurance policy to protect yourself financially. Of course, you should invest in some insurance to become a professional freight broker for major retailers.
There are several steps to become a freight broker for a major retailer. First, complete the right training courses to get a hands-on experience in the field. Second, register your business structure and submit your company name. Next, apply for broker authority with your USDOT number. More so, you can get a freight broker bond to guarantee you’ll follow every rule and regulation. Furthermore, invest in insurance like contingent cargo and general liability. Follow these steps to learn about how to become a freight broker for a major retailer.