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  • Small Entity Compliance Guide For Broker ... - Fmcsa Dot

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SMALL ENTITY COMPLIANCE GUIDE FOR BROKER OPERATIONS 49 CFR 371 and Other Applicable Regulations and StatutesJanuary 31, 20122NOTICE Small Entity Compliance Guides are prepared pursuant to Section.

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A freight broker is also known as a transportation intermediary. The broker negotiates the deals with motor carriers and helps shippers move their goods, but doesn't actually own the carrier used.

Freight brokers are licensed by the Federal Motor Carrier Safety Administration (FMCSA). The license is referred to as a Motor Carrier Operating Authority, or MC Authority.

A freight agent connects shippers and carriers. Like Hollywood agents find and organize gigs for their clients, freight agents organize jobs for truckers. They are the ones connecting loads to trucks and trucks to loads. Agents source clients, negotiate fees, and plan pickups and deliveries.

The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA, Pub. L. 104-121, as amended by Pub. L. 110-28, May 25, 2007) contains specific requirements for issuance of “small entity compliance guides.” Guides are to explain what actions affected entities must take to comply with agency rules.

Freight brokers help cargo owners ship their goods securely and efficiently. Brokers connect shippers with carriers, and then help navigate and coordinate the many moving parts of the supply chain to ensure that cargo gets safely to its destination.

“FMCSA believes that most brokers operate with integrity and uphold the contracts made with motor carriers and shippers,” the agency said. “However, a minority of brokers with unscrupulous business practices can create unnecessary financial hardship for unsuspecting motor carriers.”

§ 371.2 Definitions. (a) Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier.

Freight agents and brokers are often conflated or confused. The major difference is licensure and liability. A freight broker is licensed through the Federal Motor Carrier Safety Administration (FMCSA) and is legally responsible for the cargo. A freight agent is not licensed or liable.

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© Copyright 1997-2025
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3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232