Logistic freight brokers play a vital role in the transportation industry. With the rise of e-commerce, so has the volume of goods that must be transported and shipped across the country. Someone must facilitate and track the shipments, and freight brokers can help with this. If you want to become a logistics freight broker, you should first learn about what a freight broker does and the steps you can take to become one. This article discusses the salary of a logistics broker as well as how you can become a freight broker with a license.

What is a Logistics Broker?

A logistics broker is a person or organization that helps shippers move shipments from their point of origin to their final destination by utilizing the services of carrier companies. In essence, the logistics freight broker assists the shipper in locating carriers for goods transportation.

A freight broker is responsible for facilitating the delivery of goods to their destination and providing updates on the status of the shipment, in addition to organizing carriers for shippers.

Logistics Broker Salary

The average annual salary for a logistics broker in the United States is $41,579 as of September 3, 2022. In case you need a quick salary calculator, that works out to about $19.99 per hour. This equates to $799 per week or $3,464 per month.

While ZipRecruiter reports annual salaries as high as $63,500 and as low as $19,500, the salary of the majority of Logistics Broker in the United States currently ranges from $35,000 (25th percentile) to $48,000 (75th percentile), with the top earners (90th percentile) earning $50,000. The average salary range for a logistics broker varies significantly (by up to $13,000), implying that there may be numerous opportunities for advancement and increased pay based on skill level, location, and years of experience.

According to recent ZipRecruiter job postings, the logistics broker job market in New York, NY, and the surrounding area is very active. A logistics broker in your area earns $45,436 per year on average, which is $3,857 (9%) more than the national average annual salary of $41,579. Logistics Broker salary in New York ranks fourth out of fifty states.

What Exactly Does a Freight Logistics Broker Do?

When moving a load, freight brokers take numerous steps to ensure successful freight delivery and a positive client experience.

#1. Order tender

A freight broker will contact a company and review the company’s request to schedule a load in the first stage of the transportation process. During the quote process, you or your company will provide the 3PL company with all the necessary information. Quotes can cover standard shipments, special orders, and even special events.

In addition to your address and contact information, the broker will request that you include all handling conditions, commodity type, and other valuable load information for the broker or carrier.

#2. Scheduling of loads

When you provide accurate information, the broker will enter it all into their online freight transportation management system (TMS). Working with logistics freight broker software, such as a TMS, enables your broker-agent to locate a reputable and experienced group of carriers who can transport your shipment from point A to point B. You can be confident that all transportation freight carriers are licensed and equipped to complete your shipping journey.

Following the booking of the load, the broker contacts the driver to discuss the handling requirements for your shipment. They will double-check the provided information and schedule both pick-up and delivery.

#3. Loading

When hauling freight, loading is a critical step. Brokers will communicate with the carrier from the start, ensuring that the driver has no problems transporting your load and informing you of any potential delays. At this point, the freight carrier signs a Bill of Lading, indicating that the driver is now responsible for your freight and its transportation.

#4. Transportation

Throughout the transit process, a 3PL broker will communicate with you and your carrier regularly. A good logistics provider has advanced tracking systems, such as our PLS PRO TMS, that provide you and your company with complete visibility into the location of your shipment as well as the truck’s condition.

#5. Unloading

The delivery time is noted by the carrier, and the consignee signs the Bill of Lading. After receiving the delivery documentation, the logistics freight broker typically waits for the paperwork before billing you and your company.

#6. Payment

Finally, the logistics freight broker agent gathers all the documents and prepares them for payment to send you the invoice and payment documents.

These freight and payment documents may contain the following items:

  • Receipts: Lumper and driver work
  • Proof of delivery (POD) or a bill of lading (BOL)
  • Rate confirmation

 Logistics Broker License

The freight industry is constantly growing, and a logistics freight broker license allows you to earn money by moving truck freight without actually hauling it.

A logistics freight broker license authorizes freight brokers to move freight by connecting shippers and carriers, essentially brokering the deal. Shippers who have freight that needs to be transported from one location to another hire freight brokers.

Assume a furniture warehouse in Texas needs to ship freight to department stores in Georgia. The warehouse representative is the shipper, and he or she must find a carrier to transport the load. This is where the freight broker enters the picture.

The shipper pays you to find a carrier to haul the load if you have a logistics freight broker license. You can use your broker authority to locate qualified carriers on load boards such as Truckloads by either posting information about your freight or conducting a truck search to locate a potentially interested carrier.

Logistics Broker License Costs

Understanding how to get a logistics freight broker license includes understanding the costs involved. There are four different types of expenses:

Cost of training

The cost of training varies greatly depending on whether you read training books or enroll in a class. Look around for the best deal.

Cost of a freight broker license

Your license is $300 for one category or $600 for two. In step three of the process, you must pay this amount to the FMCSA. It is important to note that you must update your information every two years, but it is free.

Surety bond

A freight broker’s surety bond is again $75,000 in amount. For a small fee, you can obtain this bond from a surety company. Your exact payment is primarily determined by your credit score, but it is typically 2% to 4% of the bond amount, or $1,500 to $3,000 per year. Each year, you must renew your bond by paying the specified premium.

How To Become a Logistics Broker

Freight brokers must be familiar with the freight industry as well as various trucking industry trends. To do so, you must first learn about the trucking industry and develop the skills required to work as a logistics freight broker. There are several routes that you can take to become a logistics freight broker.

Here are the most common steps to becoming a logistics freight broker:

#1. Enroll in a freight broker training school.

Although freight broker training school is not legally required, it is highly recommended. Attending freight broker training school will provide you with the tools necessary to run a successful brokerage business. Many freight broker training schools offer in-person courses to give you more hands-on experience, while others offer self-study online classes. Freight broker training school will educate you on industry trends, technology tools, best practices, and how to run your freight broker business in the field. You can choose the classes you need to take to become an effective freight broker.

You could also learn about the trucking industry by participating in online forums or reading publications about shipping, trucking, and logistics.

#2. Register your company and create a business plan.

The best way to get started is to get hired by an established freight broker company. This allows you to gain industry experience and training while also planning your business strategy. To get started, choose a name for your freight brokerage and register it with the licensing department in your area. You must decide which legal framework is best for your company. The majority of freight brokers opt for an LLC, or limited liability corporation. The IRS will issue you a tax identification number once you have registered. You could also consider writing a business plan to identify your target market and applying for a line of credit.

#3. Locate the appropriate carriers

Finding the right carriers is critical to your brokerage’s success. You must choose carriers who are reputable, safe, and dependable, and who have prior experience working in the operations field that you have chosen for your company. The best places to start looking for carriers are online directories or direct referrals from other brokers in your network.

#4. Comply with licensing requirements

Before they can operate in the field, all freight brokers must meet legal requirements and obtain licensing. Begin by requesting a USDOT number from your state’s Department of Transportation. After that, you must complete an OP-1 logistics freight broker application. Which takes three to four weeks to process and costs $300 to complete and submit

The Federal Motor Carrier Safety Administration (FMCSA) will mail you your motor carrier number once your application has been approved. You must wait 10 days for your registration to be completed before you can begin operating your business.

#5. Get a freight broker bond.

Following that, you must apply for a freight broker bond or a BMC-84 bond. The bond requirement is $75,000 to demonstrate to companies and carriers that you have the financial means to cover yourself if something goes wrong. This bond functions similarly to business insurance.

Before you can be approved, the surety that provides your bond will need to evaluate your credit, the stability of your business, and your business finances. The premium percentages will be determined by your credit score.

#6. Submit your BOC-3.

BOC-3 provides your company with all-inclusive coverage. You must file this in each state where you intend to conduct business. Before you can file, you must also choose a process agent. A process agent is in charge of the legal processes in each state where you will be operating.

#7. Create a marketing strategy.

It is critical to developing a marketing strategy for your company by determining what distinguishes your company from the competition. You must also decide which platforms will best convey your marketing message. You can begin by submitting your company to online directories, which will direct potential shippers and carriers to your website. Raising awareness is a critical step toward establishing a successful freight brokerage business.

Why Should You Become a Freight Broker?

Freight brokers act as middlemen between shippers and carriers, so having qualified, licensed freight brokers is critical to long-term success. According to the same Technavio report mentioned earlier, North America will account for 33% of the growth in the freight brokerage market. The freight brokerage market is expected to grow at a compound annual growth rate (CAGR) of more than 4% between 2020 and 2024.

A strong economic environment and a pressing need for freight brokers in the shipping industry, as well as new technologies, are driving growth. Freight brokers are utilizing software and systems that make connecting with shippers and carriers much easier.


Working with a logistics freight broker can relieve you of many burdens and responsibilities. They are in charge of the entire transportation process from point A to point B, including payments. The key to a positive experience with freight brokers is being direct about your needs and providing accurate freight information through their software systems, such as a TMS. The more information you provide to your broker agent, the better your chances of finding a suitable carrier and successfully moving your shipment.

Frequently Asked Questions

What is the difference between freight broker and logistics broker?

Brokers must register for brokerage authority with the Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). Logistics brokers, on the other hand, do not take possession of the freight. Freight brokers primarily handle shipments with origin and destination points in the United States.

How can I be a good logistics broker?

The following strategies are required to be a successful broker.

  • Acquire industry experience.
  • Recognize the business costs.
  • Comply with the licensing requirements.
  • Understand the distinction between a bond and a trust.
  • Establish business relationships.
  • Create a communication system.
  • Make the most of technology.
  • Continuing education.

Is being a freight broker hard?

Getting training as a freight broker will not prepare you for the auto transport industry, and getting training as an auto transport broker will not prepare you for the general freight industry. A freight broker’s job is difficult in terms of difficulty.

How do brokers find loads?

Brokers can find loads in the same way that other industry titans do: through marketing campaigns. Direct mailers to companies with products that fit their niche, targeted online ads, or social media marketing campaigns may be used.

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