What is a freight broker or load broker?
Both terms are commonly used to define a person or company that acts as a middleman 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?
Depending on where you are planning to set up business will determine what is needed to start your load broker business.
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. A person can be a freight forwarder, a forwarding agent, a broker and so on, and correspond 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 as well as a bond/trust agreement.
Load brokers or freight forwarders are required to obtain a bond or trust agreement in the amount of $75,000 USD.
PSTC makes setting up your freight forwarding business easy!
PSTC can help you by getting all the necessary operating authorities to get your freight forwarding/load broker operation up and running. We can help with permits for both Canada and the United States, as well as help you get your bonds or trust agreements in place. This saves you the time and hassle when setting up a new business, or branch of your operations.