WHAT IS A PROPERTY BROKER?
A term established by the Interstate Commerce Commission of the United States to describe an individual(s), or companies who have met all government requirements for licensing.
WHAT ARE THE REQUIREMENTS OF THE FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION (FMCSA) FOR PROPERTY BROKERS?
A Company or individual must obtain a surety bond and maintain "process service" agents in all 48 contiguous states.
WHAT IS A SURETY BOND?
A legal document that evidences a broker’s financial ability to compensate a carrier. Normally financial statements are provided to an insurance company who issues the bond in the name of the broker. The FMCSA requires the bond to be $75,000 for a transportation broker.
WHY WOULD I USE A BROKER?
Many companies do not want to allocate their resources to a logistics department. Brokers are experts who are constantly in touch with the trucking industry and have the knowledge to negotiate competitive freight rates without compromising customers delivery specifications.
WHY WOULD A CARRIER NEED TO USE A BROKER TO IDENTIFY SOURCES OF REVENUE?
The majority of trucking companies are not large enough to afford a sales staff. They depend upon brokers to identify available loads. Many brokers communicate available loads to carriers while on the road, enabling them to operate more efficiently.