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Freight brokers are a critical part of the United States and global economy.
The number of goods that must be shipped and transported across the country has significantly increased with the growth of e-commerce.
As a result, individual and large brokerage companies have popped up to track and facilitate shipments, which is where freight brokers appear in the process.
If you are interested in becoming a freight broker, this article will help you understand the typical duties required for this position, licensing requirements, available training programs, salaries, and have the most common questions answered.
To learn more about this exciting and necessary position, keep reading!
Article Table of Contents
Freight Broker Duties in New Jersey
A freight broker in New Jersey is responsible for matching transportation services with shippers to transport goods between locations.
Freight brokers could run their own business or work for a brokerage of varying sizes.
In addition to managing the logistics, an independent freight broker must drum up a new business to stay afloat.
One of the most common responsibilities is to market your service to attract new prospects and leads, which will boost sales.
Also, you must locate and choose freight service carriers that are efficient and safe, quote and negotiate shipping estimates for customers, and schedule orders with the carriers.
Furthermore, a broker must record relevant activities to track business, keep customers updated on the shipping status of goods while assisting with other requests and questions, and help prepare carriers for loads.
Additionally, a freight broker must collaborate with dispatchers, shippers, and carriers for drop-offs and collections.
New Jersey is in a unique location because of Port Newark Container Terminal, which accepts goods from around the world to service the U.S.
From this port, there are countless trucks collecting pallets and transporting them to thousands of warehouses.
Therefore, a freight broker in New Jersey would be in constant contact with port agents and other employees to schedule the arrival of shipments.
Licensing Requirements to Become a Freight Broker
To obtain a freight broker license in New Jersey, you must first acquire a motor carrier (MC) number from the Federal Motor Carrier Safety Administration (FMCSA), which will allow you to apply for the freight broker license.
The steps for licensing include:
Acquire Insurance
After acquiring your MC number, liability insurance is legally required by the FMCSA.
Once you obtain this insurance type, it must be submitted to the FMCSA before they can grant you a license.
Obtain Process Agents
For every state you plan to operate, you must acquire a processing agent.
Being only a broker means you are making contracts or have an office.
If you are a motor carrier then your freight passes through New Jersey, so it is important to differentiate between the two.
Once you have the proper processing agents, you must submit a BOC-3 form to the FMCSA and the State of New Jersey.
Always keep a copy of this form in case you need to show proof later.
Get Your BMC-84 Bond
As a segment of the MAP-21 law, every freight broker must obtain a trust or bond equaling $75,000 to acquire a license.
There are vast differences between BMC-84s and BMC-85s, so it is critical to be familiar with both.
Get Your Unified Carrier Registration
Once you decide upon your registration type, the last step is to acquire a Unified Carrier Registration (UCR).
For only $76, you can acquire this registration form as a freight broker.
However, if you are also a motor carrier then the cost will vary based on your fleet.
Freight Broker Programs
Most freight broker programs are available online.
In New Jersey, they can be sourced through Atlantic Cape Community College, Cumberland Community College, Camden Community College, Mercer Community College, Berks Community College, Princeton Adult School, and Rowan College at Gloucester County.
Salary
The average freight broker salary ranges from $31,000 to $35,000.
However, working near major cities like New York and Philadelphia will pay significantly more.
Annual Salary Range:| Location | Avg. Annual Salary |
|---|---|
| Newark | $60,238 |
| Jersey City | $63,455 |
| Paterson | $60,818 |
| Elizabeth | $60,238 |
| Edison | $59,183 |
| Woodbridge | $59,183 |
| Dover | $60,481 |
| Allentown | $57,005 |
| Trenton | $57,005 |
| Camden | $56,503 |
Regional Salary in New Jersey
| Region | Employed | Avg. Annual Salary | Avg. Hourly Pay | Top 10% Annual Salary | Bottom 10% Annual Salary |
|---|---|---|---|---|---|
| Trenton, NJ | 50 | $65,970 | $31.72 | $78,400 | $47,380 |
* Employment conditions in your area may vary.
Frequently Asked Questions
How can I find customers in New Jersey?
The best way to find customers is by starting with those you know from the industry, as well as personally.
You never know what kind of connections they have.
You can also reach out to companies on the road via telephone and email to drum up leads.
Additionally, creating a website with your contact information and reasons for hiring your company help with online leads.
You can also post your company on online New Jersey freight websites like the New Jersey Freight Broker Directory or ThomasNet.
Do I need to apply for a New Jersey business loan?
Most freight brokerage startups require a business loan to operate unless you already have enough capital to pay carriers in a timely fashion.
Like with any startup, some costs are not necessary, like an office space can be supplemented by your home, or employee salaries may not be necessary until your company grows.
Are freight brokers still in demand?
Yes!
The BLS is expecting the job employment for freight brokers will rise by 10% from 2020 to 2030, increasing by about 10,700 new freight brokers.
Read the full guide: How to Become a Freight Broker
Freight Broker License by State
Thank you very much; I found this information very useful. and I would appreciate it if you could post information about BMC-84s and BMC-85s, as well as Unified Carrier Registration (UCR) with examples of company names.
Also, could you please recommend and provide the names of licensed training academies or colleges for the DISPATCH Training Program?