How to Become a Freight Broker in Utah
When an item needs to be shipped, it is typically sent to a shipping company that will take care of the item’s packaging and document the item’s specifications. Oftentimes, shipping companies need carriers to transport these items to their intended locations, but they may not have time to research available carriers. To work in a timely manner, shipping companies may contact freight brokers who will serve as the middlemen between shippers and carriers. These freight brokers must communicate with both parties during the shipping process, making sure items arrive at their destinations safely and on time. Freight agents will help brokers do research, compile databases of information and assist with customer relations.
Requirements for Becoming a Freight Broker in Utah
Utah state law does not contain any legislation for freight brokers. This is true for all U.S. states. Instead, national law requires that freight brokers first earn a high school diploma or GED. A government-issued Broker Authority license is the most important stipulation for freight brokers across the country. This license must be obtained before practicing.
As with any career field, many advancement options exist. These include obtaining certification, enrolling in a post-secondary education program, finding a mentor or completing an internship or apprenticeship program.
Utah Schools for Freight Brokers
Although freight brokers are not required by law to complete a post-secondary education program before practicing, it could help you start your career on the right track. Consider one of the options below:
- Load Training offers oth in-person and online options for brokerage training. In-person course sessions last for just five days at a time and take place in the cities of Phoenix, Atlanta and Houston. The program teaches students to create a truck availability database, how to respond to inquiries from carriers and shippers, and much more.
- Brooke Training also ffers courses in-person and online. Students will learn basic and advanced industry techniques. Qualifying veterans may attend courses free of charge. The school offers assistance with job placement to all students after course completion.
- Freight Movers School offers two programs that can be taken in-person or online. Course options include basic techniques as well as increasing revenue for advanced freight brokers. Currently, all in-person courses are offered exclusively in Texas and Georgia.
Certifications for Becoming a Freight Broker in Utah
To receive your Broker Authority license (also known as a Motor Carrier Operating Authority license), you will need to follow the standards set by the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA).
This administration requires that you first register your company as a business. You will then need to obtain a U.S. Department of Transportation number. After doing so, you will need to send this number, your application and a $300 application fee to the FMCSA. Within four to six weeks, if your application has been approved, you will receive your license. It is important to keep in mind that all freight brokers are required to carry a $75,000 surety bond at all times, according to the FMCSA.
Those who are interested in earning credentials can sit for the Certified Transportation Brokers exam, which is offered through the Transportation Intermediaries Association.
Career Outlook and Salary Expectations
The freight brokerage industry in Utah, as part of the broader freight transportation sector, is showing positive trends in terms of salaries. 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 Utah earn an average salary of $43,960 per year. The top 10 percent of earners in Utah make more than $67,450 per year. In comparison, cargo and freight agents in the United States earn an average salary of $46,860 per year, with the top 10 percent earning more than $70,280 annually.
National vs. Utah Salaries:
| Percentile | United States Salary | Utah Salary |
|---|---|---|
| 10% | $32,720 | $30,010 |
| 25% | $38,400 | $36,540 |
| Median (50%) | $46,860 | $43,960 |
| 75% | $58,710 | $49,900 |
| 90% | $70,280 | $67,450 |
Salaries by Region in Utah:
| Location | 10% | 25% | Median (50%) | 75% | 90% |
|---|---|---|---|---|---|
| Ogden-Clearfield, UT | $32,290 | $36,270 | $39,340 | $47,950 | $62,580 |
| Provo-Orem, UT | $18,990 | $25,710 | $36,970 | $43,960 | $55,510 |
| Salt Lake City, UT | $32,870 | $38,060 | $44,030 | $50,630 | $67,450 |
Freight Broker Trends in Utah
The employment trends for Cargo and Freight Agents in Utah (43-5011.00) indicate a robust growth pattern for the decade from 2020 to 2030. In 2020, Utah had 530 employees working in this occupation. This number is projected to increase to 630 employees by 2030, representing a growth rate of 19%. Additionally, there are expected to be around 70 job openings annually over this period, which includes openings due to both growth and replacement. This trend suggests a strong job market for cargo and freight agents in Utah, 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) |
|---|---|---|---|---|
| Utah | 530 employees | 630 employees | 19% | 70 |
| United States | 95,900 employees (2022) | 105,200 employees (2032) | 10% (Much faster than average) | 11,000 |
Sources of Data:
Utah Data: The employment figures and projections for Utah 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 Utah
Salt Lake City, West Valley City and Provo are the highest populated cities in Utah. This means that they will have the largest amount of cargo being transported to and from these cities. Hence, freight brokers working in Utah will earn the highest compensation in urban areas like these.
Freight brokers may work at brokerage companies or as entrepreneurs running their own brokerages. While working as a business owner means a higher level of responsibility, all freight brokers will have a higher earning potential with better negotiation, communication and organizational skills. If you work at developing your skills in these areas, you will be able to achieve success as a freight broker in a short period of time. The job market for freight brokers will continue to expand, so now is a great time to get started.