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Freight brokers are a critical part of our supply chain, working as go-betweens connecting freight operators and the companies that make and distribute goods throughout the country.
In the state of Michigan, freight operators connect factories to trucking companies everywhere.
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Freight Broker Duties in Michigan
Freight brokers are a critical part of the supply chains that move products from factories to the homes and businesses of many Michigan residents.
Specifically, freight brokers act as middlemen between shipping companies and freight carriers.
When a factory or distributor has to move merchandise or large equipment, a freight broker works to find a freight carrier who is capable of moving those goods to their intended destination.
Freight brokers can also help to negotiate rates and timetables.
Licensing Requirements to Become a Freight Broker in Michigan
The state of Michigan does not require any type of state license in order to become a freight broker.
All freight brokers throughout the country, however, are required to have a Broker Authority License issued by the U.S Department of Transportation’s Federal Motor Carrier Safety Administration or FMCSA.
To get this license, applicants must first register with the U.S Department of Transport in order to obtain a DOT Number and a Motor Carrier Number or MCN.
After receiving these numbers, assemble the following pieces of documentation:
- Adequate insurance for cargo and general liability.
- A $75,000 surety bond.
- A freight agent in each state that you intend to conduct business.
- A $300 non-refundable deposit.
The insurance and bond can usually be provided by the same insurance carrier, but it might be helpful to look for a discount.
Having a freight agent in the state of Michigan can be difficult for anyone unfamiliar with the industry, but it is usually easy to find one once you get started in the field.
Expect it to take about one to two months for the application to be processed and for the FMCSA to issue a Broker Authority License.
After the license has been issued to an individual, the broker can start working immediately.
In the meantime, a broker can work under a licensed broker as an assistant or intern while they wait for their application to process.
Freight Broker Programs in Michigan
Because freight brokers are not required to be licensed by the state of Michigan, there are no programs available that will train someone to get a state license.
There are several training programs that can further your skills and knowledge.
Several state colleges offer programs that are designed to train freight brokers and assist them in finding jobs in this career field.
Freight Broker Salary in Michigan
Freight brokers in Michigan will typically make between $33,000 and $36,000 a year.
Freight brokers who own their own company, however, can earn much more.
Freight brokers are often considered to be entry-level positions in the shipping industry.
After learning the industry from the ground up by being a freight broker, many people in this career field move on to work in management.
Annual Salary Range:| Location | Avg. Annual Salary |
|---|---|
| Detroit | $53,650 |
| Grand Rapids | $51,155 |
| Warren | $53,650 |
| Flint | $49,168 |
| Sterling Heights | $53,481 |
| Lansing | $51,060 |
| Ann Arbor | $54,430 |
| Livonia | $53,481 |
| Dearborn | $53,650 |
| Westland | $53,829 |
Regional Salary in Michigan
| Region | Employed | Avg. Annual Salary | Avg. Hourly Pay | Top 10% Annual Salary | Bottom 10% Annual Salary |
|---|---|---|---|---|---|
| Detroit-Warren-Dearborn, MI | 1,340 | $48,980 | $23.55 | $63,330 | $37,550 |
| Grand Rapids-Wyoming, MI | 220 | $47,390 | $22.79 | $64,240 | $36,330 |
| Lansing-East Lansing, MI | 50 | $47,760 | $22.96 | $61,710 | $37,160 |
* Employment conditions in your area may vary.
Frequently Asked Questions
Is getting additional education worth it?
Going through a training program is not a requirement to become a freight broker, but there are a number of reasons why someone would want to take one of these courses.
Getting a certification is a good way to meet other people in the industry, learn about different aspects of the shipping industry that a person does not normally get to see in their job and find a job in the shipping industry.
Is there demand for freight brokers in Michigan?
As the pandemic has raged on, there is an increasing demand for goods across the state.
Not only is there a greater need for medical supplies, but a number of people are also demanding more consumer goods as they are stuck in their homes.
At the same time, many factories are experiencing shortages in raw materials, limiting the number of goods they can produce.
The goods they can make have to be transported as quickly as possible while ensuring that they all arrive intact.
As the supply chains that many people in Michigan rely on have become more snarled and complicated, there will be an increasing demand for freight brokers who can cut their way through red tape and get goods delivered on time.
How much will freight brokers in Michigan make in the future?
With the changes in the economy and the increasing demand for workers in this field, it can be hard to predict how much workers will make in this field in the future.
Some predictions have assumed that there will be an increase of at least ten percent in the number of people working in this field.
Read the full guide: How to Become a Freight Broker
Freight Broker License by State