What is required to get your freight broker license in Canada?

This is a question I get regularly so I figured a quick blog post might help my readers.

freight broker license canadaFirst let me start with the fact that the job of a freight broker in Canada is virtually the same as freight brokers in the U.S.  Both the U.S. and Canadian freight brokers and freight agents act as the middleman between shippers and motor carriers helping to match shipper loads with available truck capacity.  Freight brokers, also known as load brokers, logistics brokers, shipping brokers, truck brokers, transportation brokers and property brokers have become an integral part of today’s supply chain.  Brokers can offer an array of services including full truckload, less than truckload, rail, and even air/ocean. Click the following links to learn “What is a freight broker?” and “How much freight brokers or freight agents can earn?”

If you are located in Canada and are interested in how to get your freight broker license here are the basic requirements as stated by the National Transportation Brokers Association.  www.ntba-brokers.com

The list of provinces below regulate freight brokerage operations:

ONTARIO: Effective January 1, 2006, Ontario Regulation 556/92 to the Truck Transportation Act and the Act itself are repealed.

One part of 556/92 has been retained in legislation and transferred to the Highway Traffic Act (HTA). Where the previous 556/92 required an application to obtain a Load Brokerage Certificate, the new addition to the HTA requires no such application or certificate, and will universally apply to all companies who broker freight “over-the-road” including motor carriers, warehousemen, customs brokers, freight forwarders, 3PLs and freight brokers.  556/92 of the HTA speaks mainly to the requirement that all parties who broker freight must maintain a trust account to hold monies payable to the carrier.

QUEBEC: Presently, the Commission des transports du Québec Section 332 requires that a “transport service intermediary” (any person who finds a carrier for the account of his client) register with the CTQ. Person can be a freight forwarder, a forwarding agent, a broker and so on, and corresponds to one of the following situations:
(1) concludes a contract in Québec
(2) has a place of business, an office or a business address in Québec, a post office box or a telephone number
(3) has a representative or an agent with a proxy to transact on her behalf in Québec
(4) generally, acts in Québec for gain in the scope of professional or commercial activities

The provinces and territories listed below do not currently regulate freight brokerage:

ALBERTA
BRITISH COLUMBIA
MANITOBA
NEW BRUNSWICK
NEWFOUNDLAND
NORTHWEST TERRITORIES
NOVA SCOTIA
NUNAVIT
PRINCE EDWARD ISLAND
SASKATCHEWAN
YUKON

If you are located in Canada, learning to become a freight broker or freight agent is virtually the same as in the United States so any reputable freight broker training program should be able to teach you how to effectively broker freight.  Online training has proven to be a very effective way for people to learn from a distance.  So if you are interested in learning how to save over $1,000 by attending an online freight broker training program versus a school or classroom setting check out www.FreightBrokerBootcamp.com

P.S. I hope you found this article useful, if so tell Google by click the g +1 logo in the top left hand corner of this article to help other people find it online!

Regards,

Dennis Brown
Owner, www.FreightBrokerBootcamp.com

 

Legal Disclaimer: The information in this article has been compiled as accurately as possible. However, FreightBrokerBootcamp.com and the National Transportation Brokers Association, its Director, Officers and/or Shareholders assume no liability whatsoever for its accuracy.  This information should not be misconstrued as legal advice and readers should verify any information contained on this page before making any business decision.

 

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9 Responses to What is required to get your freight broker license in Canada?

  1. Vladimir Diklic says:

    Hello
    Im interested in doing this business, could you please answer a few questions.
    I want to know if i could operate in Hamilton/Stoney Creek Ontario?
    Does this require me to re-post loads on any load boards and such?
    How can i be sure that i with no experience can make a living with this learning program?

  2. melonie gisben says:

    I was wondering how you make your money, trucking companies come to you and you book them with the necessary companies, what kind of commission do you take for booking the loads? Do you do a booking fee? Thank you

    • DennisBrown says:

      Melonie thanks for the question. Let me clarify…brokers do not get paid a commission by either the shipper or the carrier.
      For example a broker charges a customer $1,000 for a load from point A to point B and then finds a carrier who can move it for $850 then the broker would make $150 profit. The broker then bills the shipper the $1000 and pays the carrier $850 when due and the middle is his to keep. Now freight agents on the other hand typically work under a licensed broker and earn a commission that typically ranges from 40-65% of the profit on each load they make. Hope this helps!

  3. Jason Leach says:

    We are currently thinking about starting a company where we charge businesses a yearly membership fee to sign up to us so that they receive emails to notify them of job opportunities. When they accept the job they direct bill and we basically put them in touch with the customer. We might ask for bids for the particular load to be hauled from all our subscribers. We then pass them bids to the customer and they decide who gets the job. Like i said they will direct bill and we don’t take a commission off any load that we send out. Are we still considered a broker? is there any license that we would need to start in business? Alberta. Servicing Canada

    • DennisBrown says:

      Jason from what you have explained you would not have to be a broker in order to refer business to either a shipper, carrier or broker. You can charge a referral fee or you can charge a membership fee like you discussed. Hope this helps.

  4. anne says:

    is there a freight brocker course I can take? and how long will it take to do the course

  5. anne says:

    is there a course you can take for freight broker? and how long would it usually take

    • DennisBrown says:

      Yes I offer an online freight broker and freight agent training course click the link to learn more http://www.freightbrokerbootcamp.com
      As for how long will it take to complete, that varies from person to person but most people can review the training
      materials with a few days to a week maybe totaling maybe 3-5 hours of time. Hope this helps! Cheers, Dennis

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