What is a freight broker?

A freight broker is a licensed middleman who arranges transportation of cargo between a shipper that has freight to move and a motor carrier that has trucks to move it. The broker does not own trucks or move freight themselves — they're paid a commission for matching loads with carriers, handling paperwork, and (most importantly) collecting payment from the shipper and paying the carrier.

A carrier physically hauls the freight using their own trucks and drivers (FMCSA-issued MC number with motor carrier authority). A broker arranges the haul but doesn't own equipment (FMCSA-issued MC number with broker authority and a $75K BMC-84 surety bond). Some companies hold both authorities.

Yes. Federal law (49 USC §13904) requires freight brokers to register with the FMCSA, obtain broker operating authority (an MC number), maintain a $75,000 BMC-84 surety bond or BMC-85 trust fund, and designate a process agent in every state they operate.

Brokers earn the spread between what the shipper pays them and what they pay the carrier — typically 10-25% of the line-haul. On a $2,000 load, a broker might pay the carrier $1,600 and keep $400. Top brokers move thousands of loads a week.

The vast majority of FMCSA-licensed brokers are legitimate businesses. But the low barrier to entry has attracted fraudsters running double-brokering scams, identity theft of MC numbers, and non-payment schemes. Always verify FMCSA authority, surety bond, and reviews before accepting a load.

Look up their MC number on FMCSA SAFER (safer.fmcsa.dot.gov) or BrokerTell. Confirm active broker authority (not pending revocation), a valid BMC-84 surety bond, and read verified carrier reviews. Check that the broker on the rate confirmation matches the FMCSA-registered entity exactly.