How to Become a Freight Broker in Alaska

A freight broker in Alaska is someone who negotiates prices and deals with product suppliers, shipping companies, and truck drivers.

It can be a very rewarding career path, especially where the economy is strong and there are plenty of work opportunities available to brokers who want to make a living in this industry.

Freight brokers match shippers (that is, a customer who needs their products shipped) with carriers (companies that transport goods).

When a company needs to ship something, they will usually contact several different carriers and brokers and see who can provide them with the best price.

Brokers work as middlemen between these two entities.

It is a business with a relatively low startup cost.

It also has no need for overhead or inventory, so people have successfully worked as freight brokers from home or even while parenting.

Finally, it requires no formal education.

Freight Broker Duties in Alaska

The first responsibility of a freight broker is to onboard carriers.

This is the team they work with to fulfill orders.

Finding the right people with the proper certifications and up-to-date requirements is probably the most challenging aspect, and when you are first getting started, building this foundation is the most crucial component.

Using the right tools and software will also help.

A great onboarding and monitoring system will keep you updated and allow you to build better relationships with carriers.

It is important to take advantage of all the resources that can help you do your job better.

This could be attending industry events, networking with other brokers and carriers, or joining a professional organization such as the National Customs Brokers and Forwarders of America.

As a freight broker in Alaska, it is also your duty to make sure the carrier has the proper licensing and insurance (if required).

You would need proof of this before shipping any freight.

There are laws in place for when things go wrong – something we call cargo claims.

As a broker, you should know how to properly document damage or loss.

The shipper is ultimately liable for everything that happens during transport, so it is important that every detail of an order is documented clearly.

Licensing Requirements to Become a Freight Broker in Alaska

Freight brokers must register with the Federal Motor Carrier Safety Administration (FMCSA).

The first step is to register their business name and then they will get a number from the US Department of Transportation.

They will submit this with the application for a license.

There is a licensing fee of $300.

There are two kinds of freight broker licenses.

These are Broker of Household Goods or Broker of Property.

Each type requires its own application and it costs $300.

As well as getting the required license, you would also need to register your business which would cost $300.

As well as your licensure, you will also need a freight broker surety bond.

This can cost between $938 and $9000 every year, depending on the percentage.

The bond will cost $75,000 a year.

A good credit score will reduce the cost.

Freight Broker Programs

A freight broker program will last around 180 hours.

This can take about six months to a year to finish, depending on the pace that you take.

While there is no required formal training, it can help establish a foundation for a business.

The cost varies depending on various factors, with it being as low as $185 to $5000.

Online programs offer more flexibility.

Freight Brokers Salaries: How Much Can I Make?

One of the most important factors in determining what a freight broker can make is where they are located.

Alaska has long been known as an area with plenty of opportunities for maritime shipping, and there is normally always some kind of need for shipping lines to move goods along the coasts.

This means that the potential for making good money as a freight broker is strong, and the amount of money that a freight broker makes will depend on how much they put into it.

The average salary range is $51,110 to $67,889.

However, there is also the ability to scale up.

If someone has an entrepreneurial attitude, they may be able to earn up to $150,000 a year or more.

If they make it into a business, there is a lot of earning potential, especially if they provide training or create teams of people to work under them.

Regional Salary in Alaska

Sources

https://www.salary.com/research/salary/listing/freight-broker-salary/ak

Freight Broker License by State