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Be a Successful Freight Broker | Pacific Financial

By : Darell Baring

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A freight broker plays a key role in transporting cargo. Each day there are shippers looking for the right carriers and there are carriers looking for more customers. There are truck brokers, shipping brokers, and transport brokers working to bring these two together. With the right match, they earn through commission on the transaction. With the proper know-how, an individual can be a successful freight broker. Most often, experience in the industry is the best teacher. Starting as a freight broker agent, who basically does what freight brokers do, can be a good move providing the basic technical knowledge and network necessary.
To operate as a freight broker, the Federal Motor Carrier Safety Administration (FMCSA) requires a freight broker license. This is achieved by complying with the OP-1 and BOC-3 forms and a surety requirement or a freight broker bond. The forms are easily fulfilled since it is basic information. The surety bond, which provides urance by protecting the interests of both shippers and carriers, can often be a challenge. The surety requirement can be in the form of either BMC 84 or a BMC 85 bond. Freight brokers should understand how they are different and choose according to their preference and/or circumstance. A BMC 84 is a bond issued by insurance companies while a BMC 85 is a trust fund from financial institutions. Another basic difference is in the way it is processed in relation to claims with a freight broker having more control with a BMC 85 trust agreement.
To ist in completing freight brokers license requirements, Pacific Financial ociation, Inc. is available to issue BMC-85 Trust Agreements. The challenge in complying with this particular transportation property broker requirement is collateralizing $10,000 as specified by the FMCSA. Pacific Financial understands how this can be difficult and has come up with basic payment plans. They offer a Cash Plan, Letter of Credit Plan, Annual Payment Plan and a Monthly installment Plan to accommodate the needs and circumstances of those who wish to become a freight broker.

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