How do Freight Brokers in USA operate?
Freight brokers play the central middleman function in the US transportation market, where capacity available from transport companies is placed at the service of shippers who desire moving loads. LGOA is characterized by the following operations: Freight brokers are intermediaries within the logistics stream. They act on behalf of companies that have to move goods and locate the goods the trucking firms, trains, or other transport carriers that can haul the merchandise. By performing the coordinating role among the companies, brokers facilitate transportation without having physical transportation vehicles in their possession themselves. To legally conduct business, freight brokers need to be duly licensed by the Federal Motor Carrier Safety Administration (FMCSA). This is done via a freight broker authority (also referred to as a Motor Carrier Operating Authority or MC number) and a $75,000 surety bond. Brokers also need to register with the Unified Carrier Registration (UCR) and re...