Freight brokerage is an important industry in the transportation and logistics world. Freight brokers are primarily responsible for arranging the transportation of goods by truck, train, and even plane.
While doing this, they sometimes miss shipments or provide cheaper rates than those advertised by their competitors. To do that, they must be licensed by the state department of transportation (DOT) or the FMCSA.
Before going for any freight broker license training, we will discuss four different types of freight broker licenses with detailed information on each.
1. Standard Freight Broker License
A standard freight broker license, also called a property broker license, allows freight brokers to arrange cargo transport on their client’s behalf.
- There are many benefits to having a standard freight broker license, including the ability to work with a larger number of clients and offer a wider range of services.
- With a standard freight broker license, brokers can arrange for the transport of any type of cargo, including hazardous materials.
2. Interstate Freight Broker License
If you’re considering getting your interstate freight broker license, you may wonder what the benefits are. Here are two benefits of having an interstate freight broker license:
- If you have an interstate freight broker license, you’ll be able to operate in all 50 states. This is a big benefit if you want to be able to broker freight across the country.
- You’ll have less paperwork to fill out if you have an interstate freight broker license. This is because you’ll only have to file one license application with the FMCSA.
3. International Freight Broker License
There are two benefits of having an international freight broker license:
- If you have an international freight broker license, you’ll be able to ship freight to and from any country worldwide. This can greatly benefit you if you want to expand your business into international markets.
- With an international freight broker license, you’ll have access to a wider range of domestic and international carriers. This can be a great benefit if you’re looking to ship freight to and from difficult-to-reach locations.
4. Household Goods Freight Broker License
Household goods freight broker license has its benefits, so it’s essential to understand the difference between the two before choosing which is right for you.
- HHG freight brokers are licensed to transport household goods, meaning they can only transport items considered personal belongings. This includes things like furniture, appliances, and clothing.
- HHG brokers provide services for moving homes or businesses, as they can provide a more personal touch than a CMV broker.
As you search for the licensing to become a freight broker, ensure you choose the right one for your business model. Understand the difference between each freight broker license training.
Most importantly: complete your research and be prepared to pass the exams required to get your license. These are all vital steps in your quest to become a freight broker, so don’t rush.