Becoming a Freight Broker in New York
Those with exceptional organization, communication, and negotiating skills can thrive in freight broker careers.
Being a freight broker in New York requires a thorough understanding of the trucking and transportation industry, as well as proper training and an official license to ensure they perform their duties legally and ethically.
Education & Training
Previous experience in the freight shipping industry can give you a considerable advantage if you’re wondering how to become a freight broker in New York.
Similar Job Experience
Many experienced brokers started out as mechanics, CDL drivers, or diesel technicians. Working these other jobs allows you to obtain the industry knowledge, networking abilities, and communication skills you need for a freight broker career.
Freight Broker School Programs
While gaining the necessary know-how and experience for a freight broker job in New York can take several years, completing a freight broker school program can take as little as 30 days. During most training courses, students learn the basics of transportation and supply chain management, including:
- State and federal regulations for handling product shipments
- Current industry practices for ensuring safe, on-time product deliveries
- Planning fast, efficient shipping routes through various truck lines, steamship lines, and airlines
- Organizing invoices, contracts, insurance forms, and other documents
- Creating and updating spreadsheets
- Using industry-specific software to maintain accurate records
Additional Degree Paths
Certified Transportation Broker
You’ll also need to take additional classes and pass an official certification exam to become a Certified Transportation Broker (CTB).
New York Freight Broker Requirements
Freight Broker Licensing
To qualify for freight broker jobs in New York, candidates must obtain an official freight broker license from the Federal Motor Carrier Safety Administration (FMCSA).
Obtaining a Federal UDOT Number
After completing your freight broker training program, apply for a federal UDOT number from the Department of Transportation by submitting a Unified Registration Systems form and paying the $300 application fee.
Surety Bond or Trust Fund Requirements
Like brokers in other parts of the country, freight brokers in NY must purchase a surety bond or trust fund agreement worth at least $75,000.
Trust fund agreements and surety bonds ensure that customers receive payment, even if the broker fails to meet their contractual obligations. Having this insurance in place provides peace of mind for potential clients and can help brokers get more contracts.
Freight Broker Salaries in NY
Although the average freight broker salary in New York State is roughly $50,551 per year, brokers with more experience typically earn anywhere from $60k to almost $80k annually.
Wages vary by location, so check out the list below to find the average salary for new freight brokers in your area:
New York City $59,220
Long Island $48,014
Again, these are the average salaries for new brokers who work for a local shipping company or only have a few small clients.
Once you’ve gained more industry experience, networked with enough companies, and built up a solid reputation for your freight broker business, you may decide to set your prices higher and increase your annual salary.
A freight broker is responsible for communicating with both shipping and carrier companies to ensure that product shipments and packages arrive at their destinations on time.
When shippers need to transport their goods locally, across state lines, or internationally, they enlist the help of a broker to find carriers that can make the delivery.
Freight brokers must keep thorough, accurate records of each shipment they handle. Having a detailed account of each step in the shipping and delivery process can help clear up any disputes or breaches of contract that occur between the shipper and carrier.
Self-Employed Freight Brokers
While some shipping companies hire in-house brokers to find carrier contracts, most people pursuing this career path choose to go into business for themselves. New freight brokers typically manage small shipments to local destinations when they’re first starting out.
As they gain more experience and build relationships with more shippers and carriers, they can take on larger, more lucrative contracts.
Experts at the federal Bureau of Labor Statistics predict an almost nine-percent increase in the demand for freight broker jobs between 2021 and 2031. More freight broker jobs in New York are likely to become available during this time frame, so qualified candidates may have an easy time finding work.