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fmcsa broker authority requirements

10 FMCSA Broker Authority Requirements You Must Know About

What Is Freight Broker Authority?

A freight broker can be understood as a middleman working between shippers and carriers. This entity is not responsible for taking the physical possession of the freight but only for enabling communication between the shipper and the carrier. They make sure that the final transfer of the goods between carriers and shippers goes smoothly. They also make sure that the freight always arrives safely and on time. A Freight Broker Authority is what a freight broker requires to function in this capacity. It is basically a license granted to this entity by the Federal Motor Carrier Safety Administration (FMCSA).

How To Apply For Your FMCSA Broker Authority

You can simply go to the official website of the FMCSA and fill out the Form OP-1 – Application for Broker Authority. You can alternatively associate with a dependable third-party enabler or DOT compliance service provider that can do all this on your behalf and keep you compliant year after year.

What Are Some Of The Most Critical FMCSA Freight Broker Authority Requirements?

The federal motor carrier safety administration has laid down a few broker authority requirements that you as an aspiring broker or an existing entity must know about. They allow you to opinion your broker authority without any interruptions or hiccups.

Brokers Must Take Care Of The Following 10 Aspects As They Apply For Their Broker Authority

1. Submit your proof of insurance coverage. Submit a surety bond which is the form BMC-84. You can also submit your trust fund agreement which is the form BMC-85 for $75,000. This applies to brokers of property.

2. If you are a broker of household goods, you are required to submit a proof of insurance as mentioned above or a trust fund agreement in the amount of $75,000 again

3. BOC 3 designation of process agents is also important. You need to designate yourself as your own process agent in whichever state you usually write contracts.

4. The application processing fee is a non-refundable amount which will be charged to your debit card or credit card during the application process. The entire time span of approval will be of around 4 to 6 weeks.

5. As a freight broker, you are going to need this authority if you are an individual or in a partnership or corporation arrangement.

6. If you receive payment for arranging transportation for anything that includes household goods and goods related to property that belongs to others, you are going to need this authority. This is because you are using an authorized motor carrier.

7. As a broker, you do not assume responsibility for the goods that you are arranging the transportation for.

8. You must have an MC number in addition to a US DOT number and a BOC-3 list of process agents. You are also required to enroll in the unified carrier registration program.

9. What If You Do Not Have A US DOT Number?
Brokers who are applying for the very first time might not have a US DOT number. They might not have any other operating authority that is required to register for a broker authority in the first place. For them, it becomes very necessary to first acquire a US DOT number or other operating authority with the FMCSA.

10.  How Do Existing Brokers Or Carriers Get Their Authority?
If you are an existing broker, you already have your US DOT number registration with you. You can use the existing forms or processes you are already aware of to update your authority or apply for additional authority if you want. You can do it by:

a) Mail
You need to complete your OP-1 form. Print out the complete form and mail it to the address that is written on the form.

b) Requesting The Form By Phone
You can also call their official number to have the form delivered to you. Once you have completed it, you can mail it to the indicated address.

Wasn’t that simple? Yes, applying for your FMCSA broker authority is very easy.

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