Freight broker

A freight broker is a licensed intermediary that arranges the transportation of freight between shippers and motor carriers without taking possession of the cargo or operating the equipment.

Freight brokers hold FMCSA operating authority (MC number issued via OP-1(P)), post the $75,000 surety bond (BMC-84 or BMC-85), and designate process agents (BOC-3). Brokers earn revenue on the spread between what the shipper pays and what the carrier is paid.

Brokers do not own trucks or trailers and do not employ drivers. The carrier is a separate legal entity. The broker's liability arises from how it selects and manages carriers, not from operating the equipment.

Why this matters for freight brokers

The structural distinction between broker and carrier is at the heart of post-Montgomery negligent-hiring litigation. The broker is liable for negligent selection of the carrier, not for the carrier's driving.

Related terms

• Motor carrier — A motor carrier is a company that operates commercial motor vehicles transporting freight or passengers, holding FMCSA operating authority and meeting federal safety, insurance, and registration requirements.
• Shipper — A shipper is the party that owns the freight and tenders it to a freight broker or motor carrier for transportation.
• 3PL (Third-Party Logistics provider) — A 3PL is a company providing outsourced logistics services that may include freight brokerage, warehousing, fulfillment, transportation management, and other supply chain functions.
• OP-1(P) — OP-1(P) is the FMCSA application form a freight broker files to obtain property broker operating authority.