Start Your Own Freight Broker Business


10 Steps On How To Start A Freight Broker Business From Home

1. Educate Yourself By Enrolling In An Online Freight Broker Training Course.

The first specialty you require to do before this job is to study. Make sure you know how the freight industry works first to work as a freight broker there. You can learn how the business works by looking for an online training course. If you want to learn more about the freight industry, find shippers, work with carriers and agents, and run your own freight broker business, you should take a freight broker training course.

You'll also learn how to transport goods at a broker that is profitable for both you and the freight. The class will also guide you on how to comply with federal laws under the rules of the FMCSA and how to run your business well. I think you should sign up for Logistical Forwarding Solutions' freight broker training program. For me, the Freight Broker Course was worth every penny. It only cost me $350.00, which is a small price for such a great reward.

2. Choose a name for your Freight Broker Firm and register it with the government so that you can do business with them

It is fun to choose a name for your broker company. As you do so, choose the best type of business entity for your company and make it unique. In this step, it is crucial to register your business as a corporation (Inc.) or as a Limited Liability Company (LLC). 

There is a business license department in your area where you can do the registration. Once you've done that, go to the IRS and get your Tax ID number there (IRS). Between $300 and $1,000 will be charged to you for this process. It could take up to a month and cost you up to $1,000.

3. Make a business plan

Do some market research. In the next step, write a business plan that includes all the information you have found so far. Choose a market niche (Reefer, Dry Box, Flat Bed, etc.) and change your marketing strategy to fit its needs, like how you want to reach people. You should hire a business consultant or mentor if you can. They can help you write the business plan, which is a good idea. Usually, this process takes about a month and costs somewhere between $0 and $1,000 to do.

4. Choosing the Carriers to Work

Good service will help you build a good reputation as a freight broker! Carriers that fit your niche and customers should be found. As you do this, make sure that they are trustworthy as you do so. It is crucial to make sure that they are safe to find people you can trust. You can use your skills at networking to build up a list of trucking companies that you can use. This process never stops as you work to become a freight broker.

5. Obtain Your Federal Motor Carrier Safety Administration (FMCSA) Authorization 

As a freight broker, you need to have a U.S.DOT number. You can sign up for one with an OP- Form. There is a place where you can get your registration done: the Motor Carrier Operating Authority. If your application is authorized, the FMCSA will dispatch you your USDOT number, and you can use it on the road. Between 20 and 25 days, it costs $300 to go through this process.

6. Submit A $75K Surety Bond, Freight Broker Bond Application (BMC-84)

This bond shows that you have money and are responsible. The $75K Freight Broker Bond shows that you will pay trucking companies and shippers if you don't follow the terms of your contract. The BMC-84 needs to be updated every year. You can find out more about the ZSurety Bond that Freight Brokers need to have by going to this page. This is the information about the bonding that freight brokers need to know.

7. Make Sure You Have the Right Freight Broker Insurance

There are a lot of shipping companies that prefer to work with professional brokers who are financially secure and have insurance. To show that you are experienced, you need to buy some insurance. The best way to do this is to buy Contingent Cargo Insurance and General Liability Insurance. It gives you a lot of protection as a broker. You can get many quotes and find one that works best for you and your business. Takes up to two weeks.

8. Spend money on your freight broker home office equipment

If you like to be a freight broker and work from home, you need essential tools. These things are in the package: a printer, a computer, a fax machine, and a copy machine. Most transactions in today's market are done digitally, so this is an option. It would benefit if you also included a smartphone or landline phone, office supplies, and a good Internet connection in starting your own business. 

You can buy some software for freight brokers to use for even more efficiency. Operating from the house is good, but you need to run your business smoothly. Good equipment is vital to your success and helps you cut down on the freight you have to move each day.

9. Locate a Factoring Company

Start-up freight brokers can get money from factoring. Partnering with a factoring company is a great way to show your customers that you can pay them quickly and show that you can trust them. 

When shippers don't pay their bills on time, it can be challenging for your carriers and for you to pay for things like upfront costs. You can learn more about freight factoring by going to the LFS Freight Factoring web page. This will give you a more pleasing idea of how freight factoring works in the logistics industry.

10. Use Marketing to Grow Your Freight Broker Business

Even though you haven't worked before, this is the last thing you need to do to become a freight broker. Set up your business marketing strategy. After that, make a great logo and do some branding as well. Build a website to show off your skills and a list of satisfied customers. 

In addition, print out some marketing material (flyers, business cards) and make sure it is clear and coherent. To start a business, give the marketing items to trucking companies and people who buy them. When you work as a freight broker from home, you'll be on your way to making a lot of money.

How Do You Know Which One Is Best For Your Business For Freight Brokers?

When you have a lot of orders to ship, the first thing you should do is call a freight broker. They help with the freight shipping process. Your partner on the logistics side of your business can help you with other parts of your business.

It's important to know what a broker is, how they can help your business, and what to look for when you need one. You'll also know about the significant distinctions between a broker and other online freight service providers, like a freight forwarder and a 3PL, which you can learn about.

What is a Freight Broker?

A freight broker is someone or a business that helps a shipper find a carrier, help with delivering their goods, and keep them up to date on its progress. Some people work for transportation companies. They help their clients with cargo insurance claims, but they don't have to pay for them.

Negotiate for both shippers and carriers so they can come up with a deal that works. A freight broker knows a lot about the industry and the laws that apply to it, and they can do most of the paperwork for you.

Working with a freight broker has a lot of advantages

As someone who knows the needs of both shippers and carriers and how the freight industry changes, a freight broker can help your business.

Lower shipping costs

Because they have a lot of experience in the industry and already have good relationships with carriers, they can get you lower prices and even cut some fees.

Save time

When they look at your shipping needs, they help you save time by suggesting a better way to do things. If something terrible happens, they can help you figure out a better way to get your stuff to you.

Help with claims

They help you file a claim for lost or damaged goods, so you don't have to deal with the stress of a long process. With the paperwork, they also help you with the process steps and help you.

You require to learn how to choose the best freight broker

There are eight things you should look for in a broker when buying or selling a home. The one with the lowest price may not always be the best fit for your needs.

FMCSA license

Federal law says that anyone who arranges transportation for money must have national property dealer support from the Federal Motor Carrier Safety Administration. This is the first thing you should look for (FMCSA). This license shows that a broker meets very high standards for good business practices. It also protects you from your broker doing things that aren't good for you.

Means of transportation and other services

Check if the broker has more than just truckload motor carriers, which is the most common way to move things in the United States to look for. Having more options like less than truckload (LTL), air freight, rail intermodal, international ocean freight, and even having several carriers of the same mode allows you to back up faster if one method isn't available. This way, you can get back up and running quickly.

Experience in your field

Also, check if the broker has worked in your industry before. Some brokers specialize in specific industries and markets. In this case, if they have worked in your field before, they can help you get around common problems when shipping your freight.

Insurance and claims help

If you have to create a claim, find out what insurance the company has for your freight and ask them to help you with the paperwork. Use this service to help you fix damaged or lost shipments quickly, and it will save you a lot of time and money.

Financial stability

Carriers can legally charge shippers for full payment if a broker goes out of business. Find out if the broker pays their pages on time. The license requires a broker to set up either a bond or a trust fund with the FMCSA. The money can be used to pay out the carrier or shipper if the broker is issued.

The vetting process for carriers

A good broker knows how well the carrier does affect how happy their clients are. People don't work with anyone who isn't good at what they do. If you like to visit if a broker can get a suitable carrier for your goods, here are some things to consider.

  • The amount of liability that the carrier has for the amount of cargo that needs to be shipped.

  • Proper and up-to-date tools (e.g., temperature-controlled trailers, team transit, etc.)

  • To be able to follow the client's schedule.

Freight tracking

Please take a look at how a broker can keep track of your goods while they're on the freight. Tracking systems help you deal with problems right away, like cargo theft and delays caused by things outside of your control (e.g., weather, traffic, port closures)

Industry certifications and awards

There are third-party recognitions that show if a broker is acting purely. Find out if the seller is a partner of one of the following groups:

  • The TIA Certified Transportation Broker Program. The Transportation Intermediaries Association (TIA) is the best in the U.S. for third-party logistics professionals. It gives this honor to its members.

  • Program of the NASTC's Best Brokers. The National Association of Small Trucking Companies comprises more than 3,500 small trucking companies. In 1991, the association set up this certification for brokers who want to work with its members.

  • Diamond broker Program for Brokers with good credit, performance history, and bond quality get this honor from This is the first and largest online freight matching service started in 1995.

What Does A Freight Brokerage Do?

The transportation of your precious cargo, the freight that is important to your business's survival, is critical. But there are so many ways to move a shipment from A to B that finding the best one for your business can be challenging. At ATS Logistics, we know that in situations like this, when the rubber meets the road, it can be challenging to compute out how to move your goods. This is why we're here to help.

People like you have been coming to us for help with their shipping needs for more than 30 years. We work as a freight brokerage, and we help people just like you find the best shipping options for their needs. We'll tell you what a freight brokerage does if you read this blog. We'll also give you some advice on finding the best one for your needs.

What Does a Freight Brokerage Do?

When a shopper needs to move their goods, a freight brokerage is a person who connects them with the trucking company that can do so. These regional, national, and international trucking companies work together to ensure that each shopper can get their goods to and from their destination on time.

The business of brokering freight is all about making connections with other people. A brokerage has a network of carriers to move the goods for the shipper. This process makes it easier for each shipper, saving them the time they would have spent coordinating with and choosing a carrier independently. This means that every time a shipment goes through a freight broker, that broker is in charge of it from start to finish.

How Do You Choose a Freight Brokerage Company?

It's a big deal when you decide to work with a freight brokerage. To earn sure you have the most relevant experience and fit, here are five things to keep in mind:

  • Size

  • Communication

  • Capacity

  • Reliability

  • Responsibility


People who work for freight brokerages can be very small or very big. Some of the biggest freight brokerages in the country use vast networks of carriers, which gives them a lot of options for each situation. With size, there are different levels of capacity and capability. When choosing a brokerage to work with, you should always think about your own needs and look for a company that fits them.

Larger freight brokerages come in handy when there is a lot of uncertainty about where a shipment will go or how much power it will use. While this isn't always the case, you may get less service at more prominent brokerages. Smaller freight brokerages can also be used. 

Smaller brokers are often good at customer service and have good salespeople, but they don't always do a good job. As the size of a broker's network gets smaller, they become less able to change their plans quickly. This is mainly because they don't have the money and power of a giant company.

Given the name "basement brokerages," small brokerages that are run out of people's homes usually don't have a lot of money or staff. If there are problems with a customer's shipment, smaller businesses often can't deal with them cost-effectively as they try to keep their bottom line in check. There are many things that freight brokers don't want to deal with because they can take a loss now and then, which allows them to stick to their original price more quickly.


Relationships work better when people can talk to each other about what they want to do. Your relationship with your freight brokerage isn't any different from any other. As soon as possible, it's crucial that you feel that your concerns and goals are being taken into account. People who have worked with a freight company in the past can help you figure this out. To see if they're a good fit for you, you should talk to some of their current customers.


Over 700,000 trucking companies are available for you to choose from. The brokerage you select must have the resources you need to help you find the best deal. Ninety-seven percent of trucking companies still in business in the United States have less than 20 trucks in their fleet. 

The size and abilities of a specific brokerage may not be able to meet your shipping needs. This can cause problems in your supply chain. As a result, making sure the brokerage you choose has the abilities you need is essential for making the right choice.


It takes a lot more than getting your goods on time to be reliable when it comes to shipping them. Even though your brokerage must meet deadlines, there is more to think about when choosing a good brokerage.

Whenever a freight brokerage says that it can ship your load for a specific price, it should always do so. This is how it works: A good brokerage won't return to you after your first transaction and ask for more money. When freight brokers do things like this, people think they're bad people.

Choosing a freight brokerage that will give you a price and stick to it is essential. If they have to lose money because of an accident, so be it. As their customer, you come first in this business.


Life is peculiar. Often, the world we live in is a little crazy and doesn't always make sense. The best freight brokers know this, and they do this well. The basis for this is that these kinds of brokerages are always there to assist you with any problems that arise while your shipment is in their hands.

Perhaps the most critical type of responsibility is this one, too. Your freight brokerage will call if something happens that isn't planned during the trip. This provides you with an excess of peace of mind. When choosing a freight brokerage, make sure that they're ready and willing to answer the telephone.

What Types Of Freight Brokers Are There?

In the end, it gets even more challenging to choose the right freight brokerage for your needs. Having done a lot of research, you now know more than one type of freight brokerage to choose from—what a mess. You're right, there are a lot of brokerage companies in the transportation industry, and they all do their jobs in different ways. 

And honestly, there isn't a one-size-fits-all way to run freight brokerage services. This, in turn, leaves shippers with a lot to think about, as well. At ATS Logistics, we've been a traditional freight broker since 1989. This is not to say that different brokers won't satisfy your requirements.

There are many different types of freight brokerages that shippers, like you, can choose from in the blog below. We'll also reach over the Advantages and Disadvantages of each one, so you get a complete picture of them. After reading this blog, you'll know how to choose the right type of freight brokerage for your business. Let's start now.

What is a Freight Brokerage with an Agent Model?

Freight brokerages that work with agents are a common choice for shippers across the country. People who work for these companies care about customer service more than anything else. People who work for a company but aren't paid a salary or get benefits like traditional employees do business for their customers under their name. 

They broker freight for their customers under the company's name. If a customer books a load with a freight agent, they'll be in charge of every part of the process from the start. A freight quote, booking a bag, looking for a carrier, working with the shipper, the trucker, and the consignee to set timeframes at each end, and monitoring the freight's journey are all part of this process, as well.

Because this model doesn't offer freight agents the same health, retirement, or salary benefits as other brokerages, they become very knowledgeable about the freight movement process because they're in charge of all of its parts.

What is a Freight Brokerage in the Traditional Sense?

A traditional brokerage comprises two groups: salespeople who find customers and book loads and a group of carrier representatives who build and maintain relationships with national trucking companies. Customers and truckers for sales and carrier reps for carrier reps are shown the attention they need to keep their business relationships healthy. 

Each time a freight needs to move their goods from A to B, traditional brokerage sales and carrier reps help them find the truck space. You get a salary, commissions, and other benefits if you work for a traditional freight brokerage. You don't work for an agent. So, conventional freight brokers do many things as other businesses that aren't very traditional.

What is a freight brokerage firm that is asset-based?

An asset-based freight broker is a trucking company that can sell goods (legal permitting to operate as a freight broker). To find truck space for their customers, transportation companies use both their fleet of trucks, trailers, and drivers, as well as their network of other carriers. An asset-based freight brokerage isn't as typical as a traditional broker because it takes a lot of money to own and run a fleet of trucks. Shippers use them all over the U.S.

What is a 3PL?

It's an e-commerce logistics company called third-party logistics (3PL). This company takes over all its transportation supply chains to do more business. Some of the things these companies do for their customers include transporting freight, storing goods, distributing inventory, and fulfilling orders in the supply chain. 

A simple way to put it is that these companies take charge of and manage all of their customers' operational logistics procedures. They do more than provide trucks when and where their customers need them. 

This is called a 3PL or third-party logistics provider. When 3PLs use transportation management systems (TMS) and other technology to make their jobs easier, they can supply the most acceptable service potential and help their customers' supply chains move.

What is the Definition of a Digital Freight Brokerage?

Digital freight brokers are unique things in the transportation world. These service providers are, in a sense, match-making websites that connect shippers who want to move their goods with the trucks they need. 

To do this, these websites or apps use algorithms that are made to match a shipment to a car as quickly as possible. Digital freight brokers use their programming to develop the lowest rate for their customers' freight in a transactional way.

It's time to figure out which Freight Brokerage is right for you

As long as you know the main differences between the agent model and the other types of freight brokerages, you can start making your choice. When you choose a brokerage for your business, there are many things to think about. 

Things like network reliability, size, expertise, and track record will play a role in this crucial decision. Technology and service offerings will also play a role. And, the more ready you are, the small possible it is that you'll select a brokerage that will always let you down.

What You Should Know About Traditional Freight Brokers

Freight brokers help shippers and carriers find each other by putting them in touch. Brokers can make their lives easier for shippers by finding drivers for their loads. For runners, brokers help them keep their trucks on the road by giving them new business leads.

Traditional freight brokerages hire individual brokers who match drivers to shipments by hand. The broker charges a fee for each load that they take. A "brokerage fee" is what they charge the shipper and pay the carrier. This fee is the difference between the two.

Once a small business, the number of licensed freight brokers in the United States grew to more than 17,000 by 2017. They have become an essential part of how the freight industry works, and they have both good and bad things for shippers to think about.

3 Ways In Which Freight Brokers Can Assist

1. Freight brokers can help you get more space

There are times when shippers have to move more goods than they had planned. The need for more space may come up at a specific time of the year, like during vacations or when there is a lot of food. It could also happen when there is a sudden surge in demand, like in March 2020 when COVID-19 broke out. Shippers may have difficulty getting more space from private fleets or asset-based carriers. Traditional freight brokers can be a good source when more space is needed.

2. Brokers can be more flexible than asset-based carriers

Almost all freight shippers move through contracts with a single carrier or a specific price point. However, shippers may need to look for other ways to move their goods when the market changes. For example, when spot rates rise in tight markets, shippers may not tender to their contracted carriers. Brokers can fill in for the shipper at a higher price to reach freight from point A to point B. A shipper might use brokers to get loads at a lower rate than they agreed to pay during soft markets.

3. Brokers get to know shippers on a personal level

An essential part of a freight broker's business is to build relationships with people. Brokers make money from the fees they charge shippers, so they must learn about their business and give good service to keep that relationship. Global Trade Mag wrote an in-depth look at why these relationships are so crucial to a freight broker's business. A shipper may keep working with a broker because they have a good working relationship.

Seven Areas In Which Traditional Freight Brokers May Fail

1. Operations that take a long time

Brokers make many phone calls every day to find out where carriers have available trucks. They often communicate by email and use spreadsheets to keep track of their work, which they often do together. People who work as brokers can match trucks with loads once an hour when things go well. This means that shippers have to wait longer to determine if the brokers will cover their loads.

2. There are a lot of fees for mediators

People who work as brokers get paid on commission, so their main goal is to charge shippers as much as possible and pass on as little as possible to the carriers. Typically, a brokerage fee ranges from 15% to 20%, but the number can be much higher than that. This implies that the shipper will have to spend more.

3. There aren't that many carriers

A traditional broker can only get the right truck to the right place at the right price if they have enough trucks in their Rolodex. It's hard for a broker to find the best truck for the job because they only look at a small part of the market. As a result, the load will often be covered by the best carrier for the broker rather than the best carrier for the shipper, so this can happen.

4. Contract freight isn't as safe as it used to be

Many brokers put their money on high-volume, desirable lanes when they put out RFPs. They leave the low-volume streets out of the picture. Traditional brokers have a reason to bid low on highways because it helps them get more business, which makes them more money in the long run. 

However, when the market gets tight, and trucking prices go up, brokers often back out, taking the freight they had agreed to take. Shippers will have to look at their routing guide or find a new broker on the spot market if they need to find a new route.

5. Less resistant to market volatility

Even though they charge 15-20 percent middleman fees, traditional brokerage firms make very little money because of their high costs. If a single broker matches one load per hour, a brokerage needs to hire hundreds of brokers to service only a thousand loads per day.

People who work for traditional brokerages like TQL and others are more at risk when the market is volatile or going through a recession. People who ship things might not get the coverage and service they need when they need it most.

6. Sluggish reaction when something goes wrong

There are times when things go awry. When a carrier doesn't pick up a load. A shipper requires to create modifications to a pickup time. When shippers' plans change, they need a partner who can see a problem and fix it immediately. They need to have technology that can correct them all the time, so they don't have to do it. 

But traditional freight brokerages work by hand, so if a truck doesn't show up for a pickup at 11 PM, the broker might only find out about it the next day when the business is open. Traditional brokers will manually call their carrier network to find someone to pick up the load to fix the mistake. This means there is more risk for shippers.

7. A lack of visibility into the supply chain

If you use traditional freight brokers, you don't know where your goods are until after a load leaves the freight. This means that things happen without anyone being able to figure out what happened. Due to how manual reporting is done, key performance metrics like on-time pickup (OTP) and on-time delivery (OTD) may be outdated. Shippers need technology that traditional freight brokers don't have to get the data and insights that are most important to them.