Freight brokers act as intermediaries between shippers and carriers. Shippers must move goods from one location to another, and carriers have the logistical capacity to do so.
Freight brokers must leverage their connections with both parties to ensure that goods are effectively moved in a win-win arrangement for all parties.
Candidates looking to start a freight broking career in California can expect a competitive salary and several career opportunities. Below, we explore all the major requirements they’ll need to consider to make the journey as smooth and enjoyable as possible.
We also provide a list of high-quality programs where you can receive freight brokering training in the state.
How to Become a Freight Broker in California
The following are the requirements needed to become a freight broker in California.
Step 1: Education
Becoming a freight broker in California starts with attending a training program, preferably one in logistics, business, and supply-side management. Although candidates are not necessarily expected to have a degree or even attend a training program, doing so helps them understand the tools and fundamental principles needed to run a successful business.
Students may choose to enroll in online or in-person programs. Candidates may also participate in self-paced classes that allow them to complete their training at their own pace.
Step 2: Starting a Business
After fully understanding transportation laws, regulations, and Industry standards at a training program, candidates may proceed to start their businesses.
They must establish a legal business entity and obtain an Employer Identification Number. The next step is to obtain the relevant license(s).
Step 3: Licensure
The relevant licensure for an aspiring freight broker in California includes a broker authority license, which can be obtained through the Federal Motor Carrier Safety Administration (FMCSA). In the next section, we will explore this particular step further.
Step 4: Marketing
After starting a brokerage business, freight brokers in California have to continue marketing themselves and building relationships with shippers and carriers. Most professionals leverage online advertising and social media to discover new clients.
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Licensure & Certification Requirements
As highlighted above, aspiring freight brokers in California must register their businesses and obtain a freight broker license from the FMCSA before starting their professional careers. They must complete an OP-1 form and pay associate fees to obtain this license.
Furthermore, candidates are expected to purchase a surety bond with a minimum of $75,000.
Carrying and liability insurance is optional for freight brokers in California, but it can protect a business from potential claims. Moreover, clients tend to value this, so having one can increase a broker’s credibility.
Lastly, professionals brokering goods in California may need to consider a resale certificate for tax purposes and workers’ compensation insurance for employees.
Top Freight Brokerage Schools in California
Below are a few top training programs for aspiring freight brokers in California.
California State University - Fullerton
Online, CA Online Only
California State University—Fullerton offers a 100-course-hour online training program for prospective freight agents and brokers in California. The program maintains an open enrollment policy.
Tuition
$3,895 - $4,390 per ProgramContact
(855) 520-6806
San Diego State University
Online, CA Online Only
San Diego State University offers an online program with comprehensive learning materials for interested candidates.
Tuition
$2,066 per ProgramContact
(855) 520-6806
Cal State East Bay
Hayward, CA Online Only
Lastly, candidates may consider the freight brokering training program at Cal State East Bay. The program includes detailed instructions on how to start a freight brokerage agency and succeed on the job.
Tuition
$2,110 per ProgramContact
(855) 520-6806
ce@csueastbay.edu
Explore freight broker training schools in California by city:
Salary & Career Outlook
According to a California freight brokers survey by the employment platform Indeed, the annual average salary for professionals in this field usually ranges between $42,746 and $172,346. The $42,746 figure on the lower end belongs to candidates who are just starting their careers and are still among the lowest-paid.
The highest-paid in the top 10% are the ones who can expect to earn an annual average salary of $172,346. For most freight brokers in the state, however, the annual average salary to look forward to is $85,832 — good enough to be in the middle percentile.
San Jose is California’s highest-paying city for freight brokers, with an annual average salary of $106,245. San Bernardino and Oakland are also on the list, with annual average salaries of $106,043 and $105,647, respectively.
Los Angeles, with an average annual salary of $105,526, and Sacramento, with an average annual salary of $105,325, are among the top five.