How to Become a Freight Broker in New Jersey
Freight brokers enjoy negotiating prices and bartering to get good rates. They also appreciate doing research and communicating thoroughly. You will need to excel in all these areas if you wish to establish a successful career as a freight broker. Understanding the details involved in the shipping process along with knowing which carriers to choose for various types of loads are major components of freight brokerage. Freight agents will work as independent contractors who help brokers complete the organizational and customer service responsibilities of the business.
Where can I find freight broker training near me?
Requirements for Becoming a Freight Broker in New Jersey
According to national law, all freight brokers must earn a high school diploma or GED as well as a government-issued Broker Authority license before practicing. There are currently no statewide regulations in place governing this career field.
If you want to advance quickly within the trade, you might find it useful to complete a post-secondary education program for freight brokers. Additionally, you can choose to earn certification, complete an internship program or find a mentor who will help show you the ropes before you get started. There are many ways to learn and build upon your current skills; so, while it is not required, it won’t hurt to take advantage of any of these options. On the contrary, these opportunities might help you establish the career of your dreams.
New Jersey Schools for Freight Brokers
Completing a training program may help you appeal to potential employers as well as potential clients. Consider one of the programs below:
- Freight Broker Boot Camp allows students six months of full online access to financial strategies, negotiating methods, workflow diagrams, training articles and much more for a price of $98. Within just 30 days, you can acquire the skills necessary to become a freight broker, according to the creators of this program.
- Brooke Training offers ree tuition to qualifying veterans and offers all students job placement assistance upon course completion. In-person and online courses are available for both new and advanced freight brokers.
- Freight Movers School also offers courses either in-person, in states like Texas and Georgia, or online. Areas of study include improving sales and brokerage basics.
Certifications for Becoming a Freight Broker in New Jersey
The licensing process for freight brokers is overseen by the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). Their regulations require all freight brokers to register their company as a business before applying for a Broker Authority license (also referred to as a Motor Carrier Operating Authority license). Next, you will need to obtain a U.S. Department of Transportation number. The administration requires that you submit this number, along with an application and $300 application fee, to the FMCSA. You will receive approval within four to six weeks of submitting all the required information. All licensed freight brokers are also required to carry a $75,000 surety bond at all times.
You an become a Certified Transportation Broker by sitting for the exam administered by the Transportation Intermediaries Association. This certification is not required, but it may help you land high positions within the industry.
Career Outlook and Salary Expectations
The freight brokerage industry in New Jersey, as part of the broader freight transportation sector, is showing positive trends in terms of salaries and job growth. According to the latest data, the salary figures for cargo and freight agents have been updated from previous years.
As of 2022, cargo and freight agents in the United States earn an average salary of $46,860 per year. In New Jersey, these professionals earn a higher average salary of $49,980 annually. The top 10 percent of earners in New Jersey make more than $74,010 per year.
National vs. New Jersey Salaries:
| Percentile | United States Salary | New Jersey Salary |
|---|---|---|
| 10% | $32,720 | $32,410 |
| 25% | $38,400 | $46,960 |
| Median (50%) | $46,860 | $49,980 |
| 75% | $58,710 | $59,700 |
| 90% | $70,280 | $74,010 |
Salaries by Region in New Jersey:
| Location | 10% | 25% | Median (50%) | 75% | 90% |
|---|---|---|---|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | $34,980 | $46,980 | $52,940 | $63,300 | $79,400 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $31,560 | $43,170 | $51,520 | $65,080 | $71,380 |
Freight Broker Trends in New Jersey
The employment trends for Cargo and Freight Agents in New Jersey (43-5011.00) show a significant growth trajectory for the decade from 2020 to 2030. In 2020, New Jersey had 2,270 employees working in this occupation. This number is projected to increase to 2,720 employees by 2030, representing a growth rate of 20%. Additionally, there are expected to be around 290 job openings annually over this period, which includes openings due to both growth and replacement. This trend indicates a robust job market for cargo and freight agents in New Jersey, surpassing the national average growth rate.
In comparison, the national trend for the same period shows a growth rate of 10%, which is considered much faster than average. In 2022, there were 95,900 employees in this occupation across the United States, with projections indicating an increase to 105,200 employees by 2032. Nationally, there are expected to be about 11,000 job openings annually over this period.
Employment Trends
| Location | Employment (2020) | Projected Employment (2030) | Projected Growth (2020-2030) | Projected Annual Job Openings (2020-2030) |
|---|---|---|---|---|
| New Jersey | 2,270 employees | 2,720 employees | 20% | 290 |
| United States | 95,900 employees (2022) | 105,200 employees (2032) | 10% (Much faster than average) | 11,000 |
Sources of Data:
New Jersey Data: The employment figures and projections for New Jersey are sourced from Projections Central, specifically their 2020-2030 long-term projections. Projections Central is known for providing detailed and state-specific employment projections, offering valuable insights into various occupational trends.
United States Data: The national employment figures and projections are obtained from the Bureau of Labor Statistics (BLS), specifically their 2022-2032 employment projections.
Working as a Freight Broker in New Jersey
Newark and Jersey City are the most highly populated cities in New Jersey, making them the best places for freight brokers to work. The freight distribution in these cities will be the higher than in any other cities in the state.
When you’re just starting out, working for a brokerage company will allow you to absorb valuable knowledge from those who have been in the business for years. After you’ve acquired a certain level of experience, you may be interested in starting your own brokerage company. Doing so will allow you to earn more money, but it will also require greater independence and accountability. If you’re up for the challenge, this career may be a perfect fit for you.