Made in America Chrome Stacks

  • MAP-21 When do you need a broker's license?

    As the first long-term highway authority since 2005, MAP-21 - Commercial Motor Vehicle Safety Enhancement Act of 2012 has one provision that addresses the requirement for a broker license from the FMCSA for motor carriers who are also acting as brokers.

    The provision amends 49 United States Code 13902 by adding "Separate Registration Required - A motor carrier may not broker transportation services unless the motor carrier has registered as a broker under this chapter."

    Exactly when a motor carrier also needs a broker license is causing some confusion.

    A for-hire motor carrier may accept freight from customers and transport that freight under the carrier's own USDOT number and MC Number/For-Hire Authority. In this case, the motor carrier does not need a broker license because the carrier accepting the freight is also transporting the freight.

    A company that also has a private carrier fleet (transporting their own goods in their own vehicles in furtherance of a primary business that is not trucking) may contract with a for-hire carrier to transport their goods. A broker license is not required because the company owns the goods and is simply hiring the carrier to transport their goods.

    However, if a for-hire motor carrier accepts a load to transport and then gives the load to another authorized carrier, the first carrier is acting as a broker and must have a broker license. The first carrier is "arranging" the transportation of the freight rather than acting as a carrier and actually transporting the load.

    A broker license is required only when a motor carrier accepts a load and then hires another motor carrier to perform the transportation.

    Basically, a broker arranges, for compensation, the truck transportation of cargo belonging to others, utilizing authorized for-hire carriers to provide the actual truck transportation. For an entity to function as a broker, FMCSA broker authority is required, and a designation of process agents (BOC-3) and bond must be on file.

    New bond requirement - Another provision in MAP 21 requires brokers to have $75,000 bond, an increase from the current $10,000 ($25,000 household goods carrier brokers). The FMCSA intends to enforce this provision October 1, 2013

    Source: J.J. Keller
  • Recent Articles

  • Latest Trucker Photos

    2009 Freightliner Cascadia
    2009 Freightliner Cascadia by seanbarnett
    chrome stacks
    chrome stacks by Marie
    T.G. Stegall Truck Co - tgstruck.com
    T.G. Stegall Truck Co - tgstruck.com by TGSTrucking
    LASSITER FAMILY PICS 2012 RAINBOW 087
    LASSITER FAMILY PICS 2012 RAINBOW 087 by jerryboy
    My Ugly ass with grandson Noah
    My Ugly ass with grandson Noah by Slowdog
    Grand daughter sierra
    Grand daughter sierra by Slowdog
    More...
  • Join the RoadTrucker Community and Get Updates and Promos!


12 Volt Coolers for Truckers