They are used by the industry to arrange for the transportation required by the shipping company.
Freight brokers are also known as
A freight broker needs to use good negotiating skills to complete a “competitive” transaction.
A self-employed commercial truck driver or a small business that operates trucks for transporting goods over highways for its customers.
Federal Motor Carrier Safety Administration (FMCSA) is the only governing body for Freight Brokers.
A person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport.
Freight forwarders may receive multiple shipments from multiple points of origin and combine those shipments into one shipment going to a single destination.
Becoming a freight broker requires the applicant to submit three (3) forms to the FMCSA except:
Broker authority is a license granted by the Federal Motor Carrier Safety Administration and it is required to operate as a freight broker within the United States.
Type of carrier that provides for-hire truck transportation to the general public.
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