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FAQ'S
What
is a Freight Broker (Property Broker)?
Property Broker is the correct terminology for many names used
in the business to identify what we do. Truck Broker, Freight
Broker, Freight Agent, Transportation Broker or Agent are all
interchangeable terms synonymous with ‘Property Broker’.
Property Broker Authority allows a third-party to arrange pick
up and delivery of a Shipper's product by a Carrier without ever
having physical control of the shipment.
What are the legal requirements to operate as a Freight
Broker?
You must apply for your authority from the Federal Motor Carrier
Safety Administration (FMCSA) allowing you to act as a freight
broker, post a $10,000 Surety Bond and file your BOC-3.
How much does it cost to apply for your authority?
The FMCSA charges $300.00 to apply for operating authority
(motor property carrier, motor passenger carrier, freight
forwarder, broker). It requires that you fill out a 4 page form.
You can do it online or by mail. When filing for motor carrier
authority, there is no additional fee for a USDOT #. Notice of
name change is $14.00.
Transport Training International will file for your operating
authority with the FMCSA for a service fee of $150.00.
How much is a surety bond?
You must post a bond of at least $10,000. The amount you pay for
your bond depends on a number of factors including the type of
bond you choose and the programs provided by the financial
institution you choose to use.
What is a BOC-3?
A BOC-3 is a processing agent. This is a representative upon
whom court papers may be served in any proceeding brought
against a motor carrier, broker, or freight forwarder.
Is there a need for more Freight Brokers in the industry?
U.S. Bureau of the Census County Business Patterns indicate that
agricultural and manufacturing businesses are growing
exponentially every year. Today, it is estimated that there are
close to a million shippers. Needless to say, there is a very
large market for brokers and agents. It has recently been
estimated that freight transportation cost in the US is well
over the multi billion dollar range annually and is rising. The
amount of freight being moved by third parties such as freight
brokers is currently estimated in the 20-30% range and growing.
More shippers are using brokers & forwarders each year since it
is usually much less expensive for a shipper to use an
outsource, such as you and me, than to fund and maintain an
in-house staff functioning as a transportation department.
Employee-related costs are usually the most expensive part of
any business operation. Paying a broker on a performance-only
basis is the trend of the future with many shippers.
What is the difference in being a Freight Broker or a Freight
Broker Agent?
A broker is the owner of his or her own company. They are
required to meet all legal requirements (Authority, Bond, BOC-3)
to operate as a broker.
An agent works under the authority of the broker and typically
receives a percentage of the brokerage fee.
Can I work from home?
Yes! In fact, when starting your business it is recommended that
you start from a home office to keep your expenses low while you
grow and expand your business.
What do I need to get started?
The following are the basic office tools required for either
broker or agent startup:
1. High speed internet access
2. State of the art computer
3. A fax/copy machine
4. A telephone with at least two lines (one dedicated to the
fax, one dedicated for voice.)
5. A high quality broker software program
How much can I earn as a Freight Broker and how soon can I
start earning?
Freight brokering is an excellent business and the agents and
brokers that are successful are making anywhere from $40,000.00
to upwards of six figures per year depending upon the decision
to work as an agent or broker and whether to operate a
home-based business versus a larger office with employees. This
business is based on contacts and relationships. It takes time
to build contacts and relationships and turn them into paying
customers. Sometimes it can take six months or longer to
establish a solid customer base to see a profitable income, but
it can be done in less time. Overall time lengths vary primarily
on the individual’s determination and desire to succeed in this
business.
Is Freight Broker Training School required?
Freight Broker Training School is not required to receive your
property broker authority. However, the failure rate for those
who attempt this business without freight broker training is
high. In order for a broker to be successful in any industry
(stock broker, real estate broker, etc.), formal training is a
must. Transport Training of America will prepare you to perform
broker duties in a profitable, ethical manner, giving you the
tools needed to be successful in the field.
Why should I attend Transport Training of America, Inc.
versus other Broker training schools?
Transport Training of America or (TTA) will arm you with the
necessary knowledge you need to succeed in this business and we
will motivate you to become a true professional in the field.
Transport Training of America is the number one trainer of
freight brokers in the nation. They have earned that position by
training scores of future brokers and agents and delivering
training that consistently exceeds student expectations. Our
instructors have a combined experience of over 50 years in the
transportation industry and hold Degrees in Education with
extensive classroom experience.
Transport Training of America, Inc. is the only freight broker
training school licensed by a State Department of Education. We
are members of the Better Business Bureau, the local Chamber of
Commerce, OOIDA, and the Alabama Trucking Association. We are
pleased to provide our training in association with some of the
largest names in transportation such as H.I.S., Inc,
GetLoaded.com, TruckloadRate.com, Arcline (2000)
Inc.–Transportation Software Specialists, Pacific Financial
Associates, XFactors, ContingentCargo.com, & PC Miler. We work
with the Department of Labor through Vocational Rehabilitation
and the Workforce Investment Act.
While there are many training companies offering freight broker
training, and some at cheaper prices, this is an instance where
you truly get what you pay for. Be sure to do your homework
before agreeing to attend any school, including Transport
Training of America. When talking to a school’s representative
ask about credentials, associations, placement guarantees,
brokerage practices, instructor qualifications, and business
standings. You may even want to ask to speak with past
graduates. You are embarking on a new career; if you want to be
successful seek out the best training, not the cheapest.
At TTA, we offer our students comprehensive training followed by
the guarantee of full-time agent placement. We also offer
graduate perks on software including Brokerage software. While
all of these are great benefits to attending our training, the
greatest benefit is the education we offer combined with our
emphasis on honesty, integrity and service.
How long has TTA been in business?
TTA held its first freight broker training class in June 2002 in
Alabama. We have since expanded to include class locations in
Dallas, TX, Reno, NV Atlanta, GA, and Canada. Our instructors
hold degrees in education. They not only have extensive teaching
experience, but also over 50 years of transportation experience.
Does TTA offer any support after completion of the training
program?
Not only does TTA offer support to those who decide to be
brokers, we also offer guaranteed full-time placement as an
agent for FDF Brokerage. As an agent, you do not have to get
your authority, bond or BOC-3, so start up costs are lower, plus
you can still work from home. In addition, the brokerage will
help you take care of the typical mistakes made by individuals
new in the field. You will receive phone support from brokerage
staff, assistance with paperwork and common load problems, and
many other advantages. Most importantly, FDF Brokerage allows
you to take any customer (shipper) you obtain while working as
an agent with you when you decide to become a broker – they are
your client to keep.
Should a freight broker school be affiliated with a freight
brokerage?
Yes! And the instructors should be actively engaged in brokering
freight. How can an instructor teach something they don’t do
themselves? When a school tells you they are affiliated with a
brokerage ask for the brokerage name and MC # so you can check
their authority and make sure it is current.
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