The process of obtaining a license of forwarder: 6 basic steps - Truck Dispatcher Training

The process of obtaining a license of forwarder: 6 basic steps

In the coming years, the field of freight transport will enter into the development of activities. According to the US’s ATA, gross income from freight transport was 796.7 million dollars four years ago. PayScale reports that the median wages of all freight forwarders varies from 34000 to 65000 dollars.

A novice specialist in this field does not need to have a similar education. He can start his career by stepping up on the path of proper channels to receive his license to work with official status. To do this, you will fill out some documents in handwritten form, after which you will sign your information. Our service will help you facilitate this procedure, and in this article, we will provide you with a manual for forwarders.

In this article, we describe some steps that will help you obtain the license of a forwarder.

List of actions

The process of obtaining a license of forwarder: 6 basic steps

Step 1: Know what variety of activity you are want to obtain

Step 2: Find your methods of forwarder work

Step 3: Decide if you also want to become a carrier

Step 4: Recording for getting a forwarder license

Step 5: Submit insurance documents

Step 6: Obtain a freight broker bond or trust fund agreement

Step 1: Know what variety of activity you are want to obtain

The first thing you need to do is choose your future status. Among them is an individual entrepreneur with a personal business of forwarders or an organization with several employees. This is the factor that will affect the title that will appear in your application.

Step 2: Find your methods of transportation

The procedure for creating a license also includes the choice of your working methods. For each type of activity, there is a unique type of license, such as the ocean, the air or on the road:

  1. Trucking and road freight. Such forwarders should have a document with the FMCSA of the United States of America.
  2. Ocean freight. Such forwarders should have an authorization document of the FMC.
  3. Air freight. This is no longer a government type of document, but such a forwarder would have to register with such a service as IATA. They are also characterized by the use of service requirements such as the TSA.
  4. Intermodal freight. This type of specialist combines the activities of two forwarders. This means that you will have to obtain two or more licenses to work successfully. So, this could be the FMCSA and the FMC at the same time.

The following items will show us what the work of the forwarder with FMCSA looks like.

Step 3: Decide if you also want to become a carrier

This stage is for you to choose whether you want to combine the work of the forwarder with the activities of the carrier. Carrier is responsible for transporting cargo on a personal car. To become a carrier, you should obtain licenses such as a USDOT number and operating authority (MC number).

In the opposite case, you should only get permission to operate, including such service as the FF.

Step 4: Recording for getting a forwarder license

Recording in the status of the forwarder is an important step for the development of this career. To do this, you will be able to get such a document from the System of Unified Registration. All new candidates should pay the registration fee of three hundred dollars, and you should do so for each type of freight.

After confirming the status of the document, you should form a grant letter with your FF number. This subject is necessary if you want to get confidence in how reliable fund agreement and license are. This is a significant step that will determine how successful and effective you will work.

The FMCSA Register will then publish your document. This is to ensure that the subjects can use the help of the Operating Authority. FMCSA will give you some data for protests resolved in the opposite case.

Step 5: Submit insurance documents

You need to give your insurance policy to the FMCSA organization. Then, your insurance agent will give this document in up to three months. Don’t forget that checking information is a very important step.

The type of your shipments will affect what documents you need to fill out. It is different for each type of specialist, but it has no radical differences and affects only your narrow specialization. You should learn this issue carefully:

  1. BMC-34 or BMC-83. This document is required for household goods freight forwarders and motor carriers.
  2. BMC-91 or BMC-91X. This document is required for any freight forwarders that interact with vehicles.
  3. BOC-3. This document is necessary for the process agents that transmit official representation for your acts.
  4. BMC-84 or BMC-85. This document is necessary for those professionals who want to make sure that the next section is safe. This is about 75000 dollars.

You should follow the requirements for submitting insurance information on the FMCSA site.

Step 6: Obtain a freight broker bond or trust fund agreement

The process of obtaining a license of forwarder: 6 basic steps

The final stage of forwarder licensing involves the BMC-84 and BMC-85. This is the last stage where you should choose a freight broker bond (BMC-84) or trust fund agreement (BMC-85). Requirement is covered by 75000 dollars in both cases.

As a rule, the future forwarder should pay 75000 dollars in a service that you will not be able to use in the future.

With regard to the guarantee of freight brokers, the future forwarder should pay 75000 dollars too, but it will do it once a year. This is the general step that those people perform that do not have much money for the initial contribution.

Freight broker bond: its functioning

The efficiency of any freight broker is the conclusion of a treaty that includes the future forwarder, guarantor and FMCSA. This process will remind you of a credit line involving a guarantor.

This stage will reimburse you for all those factors that the bond controls. You can create a claim if you have suffered any damage in the course of your work activities. As a rule, your insurance agent investigates and then creates a confirmation of their reality. Then your sponsor will reimburse you any inconvenience.

Freight forwarder and a broker: the main differences

Freight broker is the specialist who connects shipper man and carrier one. But forwarder, he creates efficient conditions for communications of clients and their shipments. So, this specialist can collect, release and supervise any delivery. To get a license for the forwarder, you’ll need to go through a series of few stages that will help you figure out any choices and decisions that will make you a fresh specialist.

Once you know the features of a freight broker, you will get rid of the difficulties in this process. To become a successful specialist in this field, you should pay attention to the details and do not miss a single step. Then we guarantee you a great result of this procedure. As for us, we will provide you with all the necessary to facilitate the licensing procedure.

 

 

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