How to Become a Freight Broker in Iowa
Successful freight brokers need to have excellent communication skills and also understand the power of persuasion. This is because negotiating is a huge part of freight brokerage. In addition to connecting shipping companies with carriers, you will need to do well at convincing carriers to complete the task at your desired compensation rates. You’ll also need to do the proper research to confirm that carriers are qualified, responsible and reliable. This is where freight agents come in. In many cases, freight agents will work as independent contractors who help brokers make the best connections between shippers and available carriers.
Requirements for Becoming a Freight Broker in Iowa
Since statewide regulations do not exist in this career field, freight brokers only need to concern themselves with national legislation. According to the national laws governing freight brokerage, those who wish to enter this industry need to first earn a high school diploma or GED and then obtain a Broker Authority license issued by the federal government.
Those who are new to the field may benefit from completing a training program for freight brokers or finding a mentor who is willing to take you under their wing. Other options include obtaining certification or completing an internship. You can build a successful career quickly if you take advantage of the advancement options that will benefit you the most.
Iowa Schools for Freight Brokers
Freight broker training programs typically take place online, while in-person options are available in select states. The programs listed below may be ideal for freight brokers at any stage in their career:
- Freight Broker Boot Camp allows students to learn how to become a freight broker in as little as 30 days. The program is based entirely online and, with a payment of $98, students receive six months of full online access to workflow diagrams, training articles, negotiating methods, financial strategies and much more.
- Brooke Training teaches tudents both basic and advanced freight brokerage techniques. Qualifying veterans can attend for free, and all students will receive job placement assistance upon course completion. Training options are available both online and in-person.
- Freight Movers School offers online courses, as well as in-person courses that take place in Texas and Georgia. New freight brokers can enroll in the basics course, while experienced freight brokers may choose to enroll in the course on improving sales.
Certifications for Becoming a Freight Broker in Iowa
Freight brokers across the U.S. are required to register their company name as a business before applying for their Broker Authority license (also referred to as a Motor Carrier Operating Authority license). The next step is to obtain a U.S. Department of Transportation number. This number must then be submitted to the Federal Motor Carrier Safety Administration (FMCSA) along with an application and $300 application fee. Applications are typically approved within 4 to 6 weeks. Freight brokers are also required to carry a $75,000 surety bond at all times.
Special certifications are not required by law for this profession. However, you are able to earn voluntary certification through the Transportation Intermediaries Association. Becoming a Certified Transportation Broker may be ideal for new freight brokers who do not have extensive experience within the trade.
Career Outlook and Salary Expectations
Freight brokers employed in Iowa earned an average hourly income of $21.34, or $44,400 per year, according to Bureau of Labor Statistics data from 2017. If you wish to be among the highest paid freight brokers in this state, you can expect to earn more than $65,000 per year according to the same data.
There were 430 freight brokers employed in Iowa during 2016, and by 2026 this number is expected to rise to 510. This indicates a 18.4 percent increase in the job market for freight brokers in Iowa during this 10-year period.
Working as a Freight Broker in Iowa
Cedar Rapids and Davenport are the two most densely populated cities in Iowa. Due to their large populations, freight brokers working in Iowa will earn the most in these cities.
Starting your own brokerage may be your dream if you want to enter this industry. A great way to prepare yourself to run your own brokerage is to find employment at a successful brokerage company before going into business for yourself. This will allow you to learn valuable insights and techniques so that you can run your business effectively.