What is a freight broker or load broker?
Both terms are commonly used to define a person or company that acts as a middle man between shippers and carriers. A load broker often works with a shipper to help them find the best carrier suited to their unique needs.
How do you become a freight broker or load broker?
Canada: Most Canadian provinces have no regulations regarding load brokers. Two provinces are the exceptions;
Ontario: has deregulated load brokers so no licence is required, though Ontario regulations do require brokers to maintain a trust account.
Quebec: the Commission des transports du Québec Section 332 requires that a “transport service intermediary” (any person who finds a carrier for the account of his client) register with the CTQ. Person can be a freight forwarder, a forwarding agent, a broker and so on, and corresponds to one of the following situations:
- concludes a contract in Québec
- has a place of business, an office or a business address in Québec, a post office box or a telephone number
- has a representative or an agent with a proxy to transact on her behalf in Québec
- generally, acts in Québec for gain in the scope of professional or commercial activities
United States: The Federal Motor Carrier Safety Administration (FMCSA) requires load brokers to obtain a MC number, file a surety bond (BMC-84)or trust agreement (BMC-85), a Legal Agent of Process (BOC-3) and register for UCR.
Canadian businesses must obtain the appropriate authority if they intend on touching US cargo.
Load brokers or freight forwarders are required to obtain a bond or trust agreement in the amount of $75,000 USD.