We Are Not Boat Transport Brokers
I get many questions every week as to who can
actually broker a load to a motor carrier.
The best answer is: ONLY someone that has a brokers "License" from
the Federal
Highway Administration (FHWA). Freight Forwarders and Motor carriers
can broker loads
ONLY IF they have a brokers "License" that is on file at the FHWA.
BROKER: A
company that arranges for the truck transportation of cargo belonging
to
others, utilizing for-hire carriers to provide the actual truck
transportation. However, the
Broker does not assume responsibility for the cargo and usually does
not take possession of
the cargo. Brokers must register with the FHWA. (Brokers are issued
MC numbers.)
FREIGHT
FORWARDER: A company that arranges for
the truck transportation of cargo
belonging to others, utilizing for-hire carriers to provide the
actual truck transportation.
The Forwarder does assume responsibility for the cargo from origin to
destination and usually does take possession of the cargo at some
point during the transportation. Forwarders typically assemble and
consolidate less-than-carload (LTL) shipments into truckload
shipments at orign and disassemble and deliver LTL shipments at destination. Forwarders must register with FHWA. (Freight Forwarders are issued FF numbers.)
If a company brokers truck load shipments
and consolidates shipments, the company must
have both broker and freight forwarder authority. Motor carriers can
also have motor carrier, broker, and freight forwarder authority if
they are performing the services of each.
Each of their authorities must be on file at the FHWA.
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