Hey there! Today I want to address a question I get asked quite frequently: “Can you broker freight as a side hustle?” If you’re looking to earn some extra income in the transportation industry without committing to a full-time role, this might be something you’ve wondered about too.

The Short Answer: Yes, But With Considerations

Technically, yes – you can broker freight as a side hustle. If you’re just looking to occasionally arrange transportation for friends who own stores or help businesses with sporadic shipping needs, this can absolutely be done.

However, there’s an important distinction to make about how to approach this, especially when you’re only handling occasional transactions.

Two Paths to Choose From

Option 1: Become a Freight Agent

If you’re only planning to broker freight occasionally, becoming a freight agent might be your best bet. Here’s why:

Advantages:

• No need to apply for your own freight broker license
• No surety bond requirements (which typically cost $75,000)
• No compliance headaches or paperwork burden
• Faster way to get started
• Established brokerages handle the back-office operations
• Access to existing carrier networks and technology platforms

The Main Disadvantage:

• You’ll have to share a portion of your commission with the licensed freight broker you work with (typically 30-50%)

As a freight agent, you’ll essentially be an independent contractor working under an established freight broker’s authority. You handle the customer relationships and load coordination, while they provide the legal framework, billing, collections, and carrier payments.

Option 2: Get Your Own Freight Broker Authority

If your “side hustle” ambitions involve more regular transactions and higher income potential, getting your own broker authority makes more sense.

Advantages:

• Keep 100% of your commissions
• Build your own brand and business
• Complete control over operations and business decisions
• No middleman between you and your customers

Disadvantages:

• Requires obtaining a freight broker license from the FMCSA
• Maintaining a $75,000 surety bond
• Compliance responsibilities and paperwork
• Higher startup costs (typically $5,000-$10,000)
• Full responsibility for billing and collections
• Need to establish your own carrier relationships

Making the Decision: Volume is Key

The decision really comes down to transaction volume. If you’re truly just handling a few loads per month, the administrative burden of maintaining your own authority likely isn’t worth it. The partial commission you’d pay as an agent is probably less than the costs of maintaining your own authority.

However, once you start handling multiple loads per week, the math begins to favor having your own authority. At that point, the higher percentage you keep on each transaction outweighs the fixed costs of compliance and bonding.

As we discuss in our freight broker training course, a freight broker connects someone who needs something shipped with a suitable transportation company to transport their cargo. For that, they earn also earn a commission. 

To operate as a freight broker, you will have to obtain a freight broker license. To do so, you will have to go through an FMCSA application process and get a surety bond. Then, once your authority is approved, your MC number will get activated and you can begin operating as a freight broker.