How to Become a Freight Broker in Mississippi

If you are looking for a new career, becoming a freight broker in Mississippi might be just what you are looking for.

Freight brokers are the middle men between shippers and carriers.

It means that you need to be able to communicate between these two entities, as well as keep records and resolve problems as they arise.

It this sounds like interesting work to you, check into it.

Getting Started

To get a freight broker license, you will need to go through the Federal Motor Carrier Safety Administration (FMCSA).

This is the certification that you need to operate as a freight broker in the state.

What Does a Freight Broker Do?

Freight brokers coordinate shippers with carriers (transportation operations).

That’s how goods get moved around the country.

Specifically, brokers find and vet carriers for clients who are shippers.

They also negotiate the pricing between the two parties and take care of any paperwork.

During the whole process, the broker will communicate between the parties, resolve any issues and actively track the shipment from its start point to the destination.

If a shipment requires special equipment, you will be responsible for locating that as well.

Invoicing the clients is also part of the job.

In order to be successful, you will also need to stay current on transportation laws and trends in the shipping/trucking industry.

Becoming a Freight Broker in Mississippi

There are a number of requirements to become a licensed freight broker.

First of all, you must be 18 years old and have a high school diploma or GED.

The following requirements include:

• A USDOT number and a USDOT PIN
• An MC Number
• An EIN
• Insurance
• A Process agent
• A Freight Broker Bond

When you start going through this process, you will quickly understand that Mississippi does not require state licensing.

Everything is done through FMCSA at the US Department of Transportation.

Your application and paperwork will still be specific to your state.

Getting Started on Your Business

The first step to establishing your business is to get an EIN number from the IRS.

You will also have to register your business with the Mississippi Secretary of State.

This number is needed to open business accounts and take care of tax payments.

Next, you will need a USDOT number and USDOT PIN.

You can apply for a USDOT number through the FMCSA website.

The next thing is a USDOT PIN.

You can also do this online. 

It requires a credit card but you won’t be charged.

A copy of your pin will be also mailed to you.

Getting Your Broker Authority

When you receive your PIN, you need to submit an application for a Motor Carrier Number (MC).

This is an online process that recognizes your broker authority.

Again, a letter will also come by mail.

Freight Broker Bond

You’ll need to get a surety bond in the amount oof $75,000.

It costs less than this, but it is a measure of protection for your business.

It you have good credit, the cost will between 1-5% of the bond.

Expect to pay somewhere between $750 and 3,750.

If your credit is not so good, there are still options, but the premium will be higher.

Get Insured

This is an important step as if your business is not insured within 90 days of your application, it won’t be approved.

Your insurance company may be able to take care of this for you but make sure that everything is correct.

You will need coverage for bodily injury and property damage.

You will also have to have proof of cargo liability coverage.

Processing Agents

A processing agent is required in Mississippi.

This is an extra layer of protection for you and your company.

If someone files a claim against your brokerage, the agent will provide legal representation.

If you decide to expand into other states, they can also help you.

Freight Broker Training Programs in Mississippi

 While you are not required to attend a training program, it can be helpful to you off to a great start.

You’ll learn the business from top to bottom.

Some of the best programs in the state include:

• Copiah Lincoln Community College
• Mississippi State University
• The Transportation Intermediaries Association

Salary Expectations

In Mississippi, the average salary in 2023 is $38,857.

But the industry continues to grow so you might consider looking for a position in another state with higher salary rates such as California, New York, or Pennsylvania.

Annual Salary Range: Annual Salary by Location:

Location	Avg. Annual Salary
Jackson	$43,031
Gulfport	$42,273
Biloxi	$42,610
Hattiesburg	$42,009
Greenville	$42,740
Meridian	$42,615
Tupelo	$40,557
Southaven	$44,485
Vicksburg	$42,598
Pascagoula	$42,413

Regional Salary in Mississippi

* Salary information based on the May 2022 Occupational Employment Statistics (OES) Survey for Cargo and Freight Agents, OCC Code 43-5011, BLS.
* Employment conditions in your area may vary.

Frequently Asked Questions

How long does it take to become a freight broker?

For most people, it takes two to three months to complete the process to become licensed.

To get through the process more quickly, use the online application processes that are available.

If you opt to take a training course, the process can be about six months longer.

How much does it cost to become a freight broker?

The upfront fee is $300 for the broker license.

However, there will be other costs such as insurance, surety bond, office space, etc.

Is this a stressful job?

This job requires paying attention to shipments, coordinating resolutions to any issues and maintaining clear communication between of all parties.

Freight Broker Info by State