How to Obtain Freight Broker Authority – Freight 360
By Freight 360
So you’re considering getting your own freight broker authority, and you’re wondering, “how do I go about doing this?” Don’t worry – it’s pretty simple and can be done in just about a month’s time. We’ve covered this in some other content in the past, but wanted to make sure you have the latest information as it stands in 2022.
We’ve seen a record number of people start a career in freight brokering lately, and if you’re thinking about doing the same, this blog is for you. Let’s take a look at how you can get your freight broker authority.
As a freight broker, your operating authority, sometimes referred to as “license”, is legally called “Broker of Property (except Household Goods)” by the Federal Motor Carrier Safety Administration, or FMCSA for short. This differs from the authority a motor carrier or trucking company would need as well as some other players in the freight world.
You can check out the FMCSA website to read all of the details of the various authorities they grant. In a nutshell, this authority legally allows you to coordinate transportation for a shipper by means of a motor carrier. In layman’s terms, you find trucks for people that need them. This authority also allows you to receive payment for your services. Anyone that tries to do this job without the proper authority is technically breaking the law.
The Cost
There’s a lot of costs associated with becoming a freight broker, but let’s just look at the actual cost to get your freight broker authority from the FMCSA. New freight brokers will pay $300 as of 2022 when they apply for their operation authority. If you’ve had an authority in the past and just want to reactivate it, that’ll cost you $80. If you have an authority currently and just want to change the name on the registration, that’s 14 bucks. These prices can change from time to time, but that’s the going rate as of 2022.
The application process is quite simple, and it’s all done online. The FMCSA created an online application system called the Unified Registration System, or URS, to apply for your freight broker authority. It’ll walk you through the application form, which is form OP-1. They’ll collect the $300 from you when you fill out and submit your application. After about a month, you’ll be granted your operating authority and be assigned a Motor Carrier number, commonly called your MC number. MC numbers are granted to brokers and carriers, even though the name might make you think it’s just for carriers.
What Else?
During your application and waiting process, you’ve got two other main tasks to complete, and those are obtaining a surety bond or broker trust fund in the amount of $75,000 as well as designating process agents for legal purposes on form BOC-3. Make sure to check out our other content for a deep dive into what those are and why we need them as freight brokers. So, $300, an online application, and some waiting time while your application is processed – that’s the process in a nutshell. Don’t overthink this process and don’t be overwhelmed. The online application system walks you through everything step by step and is extremely user friendly.
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