How to Become a Freight Broker in Texas

Freight brokers are in demand.

How do you get started on this job that earns up to $100,000 a year?

The US-Mexico-Canada Agreement (USMCA) improved opportunities for the American trucking industry.

Interstate 35 (I-35) is the primary artery connecting Canada to Mexico.

Many days it is bumper to bumper with trucks from Dallas-Fort Worth to Laredo.

The Port of Houston is the largest port in the US.

In 2021, more than 51.9 total revenue tonnage came through the Houston Shipping Channel.

Freight brokers play the connecting role in this transportation mega land.

Freight Broker Duties in Texas

Freight brokers play an indispensable role in keeping the supply chain moving.

As a freight broker in Texas, you will be responsible for organizing and supervising the transport of cargo from one point to another.

This includes doing tons of paperwork, checking that shipments meet all regulations, coordinating contracts between suppliers and buyers, negotiating rates, and keeping open lines of communication.

Freight brokers are crucial to the economy, and they are paid well.

As a freight broker serving the Texan market, you might specialize by product.

For example, petrochemical refineries are a huge industry that requires expertise in transporting hazardous materials.

There is an ongoing need for shipping agricultural goods from the American heartland down to Mexico, then returning with fresh fruits and vegetables.

Another way to specialize is by type of transportation.

A freight broker in Texas might coordinate cargo shipments traveling by air, water, rail, or road.

Or you might embrace the challenge of coordinating multiple shipping methods to keep costs low and competitive.

Another huge need is resolving backlogged shipments.

Resolving the mess caused by the pandemic will take years to fix – and you could be part of that.

If you speak another language – or want to learn one – there are promising opportunities for freight brokers specializing in international trade and customs regulations.

A majority of the shipping cargo passing through the Port of Houston is coming or going to another country.

Licensing Requirements to Become a Freight Broker in Texas

Each state has its own licensing requirements.

In order to get started in Texas, you will need both certification and a surety bond.

The Texas Department of Transportation and the Federal Motor Carrier Safety Administration (FMCSA) requires brokers registering for the first time to apply with the Unified Registration System (URS).

After FMCSA processes your registration, you will receive a unique MC number.

You can find out if you need a USDOT number with the interactive questions here.

The next requirement in Texas is to obtain proof of insurance coverage.

You will need a Surety Bond (Form BMC-84) or Trust Fund Agreement (Form BMC-85) for $75,000.

Next, you will need a Designation of Process Agent form.

Send these forms and the $300 application processing fee to the Texas Department of Transportation.

You can do it all online.

If you need help or have questions, you can call the FMCSA Information Line at (800) 832-5660 or chat with an agent.

The application process takes 6-8 weeks.

Freight Broker Programs in Texas

Texas does not require you to take any special courses to become a freight broker, but you will need certain skills to be successful.

I recommend a short, online course to learn the basics of negotiating, arranging freight transportation, and doing the right paperwork.

Computer skills will help you track shipments and monitor their status.

You can also get these skills inexpensively at a community school.

But I would look into the Texas Small Business Development Centers.

The Texas government has set up small business centers all over the state.

Most of the training is free to any resident starting a small business.

They offer several services, ranging from setting up a legal business to matching you up with a mentor.

If I lived in Texas, I would definitely look into it.

And, of course, you will need people skills.

When supply chains get backed up, everyone hurts.

As a freight broker in Texas, you can be the hero that frees a frozen shipment of Fancy Feast so that every kitty gets his dinner.

Salary

Beginning salaries freight brokers in Texas range from $31,000 to $35,000.

As you can experience, you can rapidly increase your pay.

Employers look for business and logistics education, certifications, computer skills, and a network of connections in the industry.

You will also earn more in a city with several freight brokers like Houston or Dallas.

Regional Salary in Texas

Freight Broker License by State