How to Become a Freight Broker in South Dakota

Freight brokers are a critical aspect of the logistics industry.

All product types, from food to computers, clothing, and cars, are available to consumers due to the background work conducted by freight brokers.

They manage numerous shipments simultaneously and coordinate with other industry professionals throughout the day to ensure products are delivered on time and cost-efficiently to their final destinations.

For those interested in entering the field, keep reading to learn how to become a freight broker in South Dakota!

Freight Broker Duties in South Dakota

South Dakota freight brokers ensure cargo is transferred cost-effectively and timely from the shipper to the client’s location using various trucking companies.

The broker first contacts multiple trucking companies to find the carriers with the best prices and fastest delivery.

Once a carrier is chosen, including the best price, they contact the shipper to arrange cargo pickup.

The freight broker gives allotment money to ensure the job is completed.

The broker can keep any remaining money after all parties are paid.

Throughout the process, freight brokers are responsible for scheduling, estimating, price negotiation, speaking with carriers, clients, and shippers, and maintaining detailed records.

Additional duties include:

• Learning about new industry trends.
• Updating customers on their shipments.
• Gaining new business leads for future work.

Licensing Requirements to Become a Freight Broker in South Dakota         

South Dakota is one of the few locations that requires state and federal licensure.

New freight brokers must obtain an Operating Authority Number (MC) and the U.S. Department of Transportation number.

These numbers are specific to the freight broker and the registered information about the individual and company.

To acquire a Broker Authority License, candidates must register with the FMCSA.

This registration is required to get the government-issued numbers listed above.

Additionally, brokers must receive numbers for shipment types, like a Cargo Tank (CT) number, also issued by the FMCSA.

Another part of getting a broker license is having a surety bond of at least $75,000 to protect the individual and company against bodily injury, property damage, theft, or other types of loss.

Once the broker has these requirements, the application fee of $300 must be paid, and the license will be issued within four to six weeks.

Freight Broker Programs in South Dakota

There aren’t any physical locations in South Dakota that offer freight broker programs.

However, the following are online.

Brooke Training

Although Brooke Training offers in-class instruction in large cities, those in South Dakota must take the online program.

The introductory course can be completed in at least five days and costs $2,500.

The advanced course is more intensive and comprehensive during the five-day requirement and costs $4,000.

University of North Dakota

Located in Grand Forks, the University of North Dakota offers a six-month freight broker training program taught by industry professionals.

The online curriculum covers all resources and information necessary to operate a successful brokerage business, including negotiations, contracts, marketing, accounting, operations, and licensing requirements.

Freight Brokers Schools in South Dakota – Summary Table

Salary

The U.S. median freight broker’s annual income is $35,100, with pay ranging from $31,400 to $35,500.

In comparison, the median yearly income in South Dakota is $31,000, with pay ranging from $29,100 to $32,900.

Annual Salary Range: Annual Salary by Location:

Location	Avg. Annual Salary
Sioux Falls	$43,035
Rapid City	$42,182
Aberdeen	$39,670
Watertown	$42,316
Brookings	$42,316
Mitchell	$42,316
Pierre	$40,389
Yankton	$41,751
Huron	$40,993
Vermillion	$41,185

Regional Salary in South Dakota

* Salary information based on the May 2023 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

What are the critical skills a South Dakota freight broker must possess to be successful?

The most successful freight brokers boast a range of skills.

First, they must be comfortable using industry and business software applications like SAP and Microsoft Office.

Second, freight brokers must have excellent communication skills to work with carriers, clients, vendors, and shippers.

Third, brokers must have a strong knowledge of geography and local weather since trucks could use an arduous route.

Fourth, they must maintain a professional demeanor when experiencing shipping issues, which will inevitably occur.

Finally, freight brokers must refine time management skills to allocate resources to different shipments so delays don’t happen.

Is being a South Dakota freight broker challenging?

Being a freight broker in South Dakota can be challenging but incredibly rewarding.

Marketing yourself and the company and utilizing industry contacts to gain new business can take time and effort.

While sales and marketing techniques can help, knowing how to gain new leads is a characteristic learned on the job with experience.

Also, having client referrals in the logistics industry is one of the best options for new clients.

While freight brokers make their schedules, they must be on calls with clients and shippers, regardless of the time of day or night.

Is becoming a South Dakota a worthwhile career?

Yes, with the increasing movement of products worldwide, freight brokers continue to be in high demand, with no indication of decreasing in the future.

As smaller logistics companies enter the industry, the carrier network is becoming more fragmented than ever, so freight brokers have plenty of logistics company options.

In addition to knowing you’re a cog in the wheel of a massive transportation network that helps consumers and businesses get the products they’ve ordered, the position can be lucrative.

Freight Broker Info by State