Are you considering a career as a freight broker?
Freight shipping is a difficult system to navigate thus the reason for freight brokers.
Freight brokers work by connecting companies with freight services to ensure the loads they are shipping make it quickly and safely to its destination.
Another factor you will find useful in this guide is the comparison between trade schools and university tuition costs.
Depending on whether you choose to go the trade school route or the bachelor’s degree route will have a dramatic impact on the costs you pay for education and training.
Working as a freight broker means you are responsible for coming up with new leads and finding new prospects, providing shipping estimates to customers, and much more.
How Much Does it Cost to Complete Freight Broker Trade/Vocational School?
Training programs within trade schools can vary in cost.
It depends on many factors such as the length of the course, the institution you are attending, and the state in which you reside.
Generally, you can expect to pay anywhere between $200 and $2,000.
Community college is an option if you are considering becoming a freight broker.
The best part about attending a community college for freight broker programs is that there are no prerequisites required.
Community colleges will teach you everything from setting goals and developing your corporate identity to operations and using operations software.
Typically, only a certain number of hours is required when enrolling in these types of programs through community colleges.
Additionally, you have the option to earn an associate’s degree in logistics management or transportation and logistics management.
Associates degree programs take two years to complete while certification programs can be completed in as little as six months.
Trade School vs. College by Numbers
|National Average||Four-Year College||Two-Year College||Trade School|
|Average Cost||$6,810 to $34,376||$10,000 to $15,100||$98 to $5,500|
|Time to Complete||4 Years||2 Years||Up to 6 months|
|Other Expenses||Books, Housing, Other Supplies||Books, Housing, Other Supplies||Books|
|Award||Bachelor's degree||Associate's degree||Certificate|
How Much Does a Freight Broker’s License Cost?
There are several options needed to apply for a freight broker license.
No matter where you live, typically the application fee to apply for a freight broker license is $300.
Additionally, you will need to provide proof of insurance coverage.
This means that you are required to put up at least $75,000 worth of coverage to protect the owner of the goods, the carrier company, the shipper, and FMCSA.
Furthermore, it’s recommended that you purchase a trust fund agreement and a surety bond.
Instead of coming up with 75,000 on your own, you have the option of purchasing a surety bond.
Aside from your typical license costs, you may also need to purchase public liability insurance, and cargo insurance, and pay incorporation fees.
What are the Additional Costs After Becoming a Freight Broker?
Besides all the different types of insurance policies you will have to purchase, there are other costs you should take into consideration.
Keep in mind, that if you plan on opening up your own freight brokerage company, you will need to purchase a computer equipped with high-speed internet.
You’ll also need to purchase the following:
- Fax/copy machine
- Phone service with unlimited long-distance calls
There are also a variety of digital tools that you must purchase in order to successfully run your business:
- TMS (Transportation Management System) – This software is required because it helps you plan your daily tasks on a single platform.
- Digital, Real-Time Visibility Software – This software helps you keep up with trucking data and loads in real-time. It is also a requirement and provides consistency.
- Load Booking Automation – Tools such as Trucker Tools’ Book it Now is essential to help you run your business smoothly. This software enables certain carriers to book loads directly through the app or software program.
- ELDs – Depending on the policies of your trucking company, drivers may not be allowed to use app-based tracking programs. This is where ELDs come in. This is specifically for load tracking and provides you with options to provide to your carriers.
- Unified Carrier Technology Platform – It’s also important that you implement a program that is simple to use and helps you keep carriers within your network. This also ensures that loads are constantly being moved. Apps such as Tools’ free driver enables truckers to keep up with their loads, look for and book loads, and even send documents to you.
Is Becoming a Freight Broker a Good Investment?
Overall, becoming a freight broker will require you to invest a lot in the beginning.
However, it’s a solid industry with a promising future for growth. It also offers great pay.
On average, freight brokers make about $45,000 annually.
With experience and time, you could earn up to $75,000 and even more.
You must compare schooling options.
Is trade school enough for you to receive all the training you need to start your own business?
Or do you prefer to take your education a bit further and earn an associate’s or bachelor’s degree?
Costs will differ, depending on the route you choose to take.
Once you’ve invested enough to get started as a freight broker, the profession itself seems to be a rewarding one.