close
Advertise
Trucking Jobs by News
Trucking Jobs by Search

Find qualified drivers and diesel mechanics with careersingear.com. No one-size-fits-all. Careersingear.com offers customizable lead generation campaigns.

Use the form below to contact us for more information.

Dealing With Freight Brokers: Your Right To Know Dealing With Freight Brokers: Your Right To Know
Dealing With Freight Brokers: Your Right To Know
Published
September 28th, 2011

They’re called “freight brokers,” “property brokers,” “truck brokers,” and “load brokers.” Regardless, they’re all the same. They’re the middlemen of the trucking world: third-party intermediaries who, for compensation, arrange the transportation of shippers’ property by authorized motor carriers.

If you’ve been a motor carrier (or an independent owner-operator with your own authority) for a while, you’ve probably taken a load or three from freight brokers. You obviously know what the broker agreed to pay you. But, I’ll bet you’d just love to know what rate the shipper agreed to pay the broker and what percentage of the shipper rate the broker kept. Was it 15%? Maybe 25%? How about 45%! Well, guess what… under Federal Regulations, you have a right to know! All you need to do is ask.

49 C.F.R. Section 371.3 states:

“A broker must keep a record of each of its transactions, and keep the records for three years. Each party to a brokered transaction has the right to review the record of the transaction applicable to them. For example, motor carriers accepting transportation shipments from brokers have the right to review any of the required documents retained by brokers…

Each transaction record must show:

(1) The name and address of the consignor;
(2) The name, address, and registration number of the originating motor carrier;
(3) The bill of lading or freight bill number;
(4) The amount of compensation received by the broker for the brokerage service performed and the name of the payer;
(5) A description of any non-brokerage service performed in connection with each shipment or other non-brokerage activity, the amount of compensation received for the service, and the name of the payer; and
(6) The amount of any freight charges collected by the broker and the date of payment to the motor carrier (emphasis added).”

So, if you’re a carrier, then you have the right– for up to three years after the transaction– to ask your broker to produce a copy of his invoice to the shipper! Now, if you do ask, don’t be surprised if the broker gets offended and decides to stop giving you loads. However, if it was a spot market deal, or you’ve already decided to get your loads elsewhere, then you might choose to exercise this right. Keep in mind… if you discover your broker kept 50%, it will not change the outcome of your rate contract. But, it might help you in terms of future negotiations.

If your broker refuses your request, you can report the broker to the F.M.C.S.A. under 49 C.F.R. Section 386.12. Or, you can retain us and we’ll be happy to explain the facts of regulatory life to your broker.

Want to learn how to cut out the middle man, make more money, find freight on your own, and set freight rates without dealing with freight brokers? Attend our “Introduction to Freight Brokering” workshop offered in a city near you. Call us at 1 (888) 414-1874.

By James P. Lamb, USDOT/FMC Practitioner
President, DOTAuthority.com, Inc.

Would you like to share your thoughts?
Your email address will not be published. Required fields are marked *
10 Comments
Rev
August 9th, 2012

When I was in training for my A’s I saw several folks male/female struggling with the same thing. I told them as I will advise you. Take the time to know your mirrors…they are your life line. Also it helps to practice backing with a regular car and using the mirrors only for backing. I told one guy to rent a u haul short trailer (he had a hitch on his suv) and begin their. Simple stuff we over look but do nearly every day. )

Rev
August 9th, 2012

When I was in training for my A’s I saw several folks male/female struggling with the same thing. I told them as I will advise you. Take the time to know your mirrors…they are your life line. Also it helps to practice backing with a regular car and using the mirrors only for backing. I told one guy to rent a u haul short trailer (he had a hitch on his suv) and begin their. Simple stuff we over look but do nearly every day. )

Rev
August 9th, 2012

When I was in training for my A’s I saw several folks male/female struggling with the same thing. I told them as I will advise you. Take the time to know your mirrors…they are your life line. Also it helps to practice backing with a regular car and using the mirrors only for backing. I told one guy to rent a u haul short trailer (he had a hitch on his suv) and begin their. Simple stuff we over look but do nearly every day. )

Rev
August 9th, 2012

Thank you I really needed to know this one. 🙂

Rev
August 9th, 2012

Thank you I really needed to know this one. 🙂

Rev
August 9th, 2012

Thank you I really needed to know this one. 🙂

auto insurance quotes
April 14th, 2012

How many trucking companies have Veteran Programs that actually paid while at school? I went to Clark State Commercial Transportation Training Center in Springfield, Oh. with the goal of getting my CDL A but when I struggled with backing instead of giving the instruction to correct the problem that I was having they told that CDL B would be since they cant see what I’m doing so they cant correct my problem! All I want to do is drive and now I’m stuck CDL B with Air brakes, Hazmat and tanker endorsements. I’m a 20 yr Navy Veteran and with the proper direction I can and will accomplish anything!

auto insurance quotes
April 14th, 2012

How many trucking companies have Veteran Programs that actually paid while at school? I went to Clark State Commercial Transportation Training Center in Springfield, Oh. with the goal of getting my CDL A but when I struggled with backing instead of giving the instruction to correct the problem that I was having they told that CDL B would be since they cant see what I’m doing so they cant correct my problem! All I want to do is drive and now I’m stuck CDL B with Air brakes, Hazmat and tanker endorsements. I’m a 20 yr Navy Veteran and with the proper direction I can and will accomplish anything!

auto insurance quotes
April 14th, 2012

How many trucking companies have Veteran Programs that actually paid while at school? I went to Clark State Commercial Transportation Training Center in Springfield, Oh. with the goal of getting my CDL A but when I struggled with backing instead of giving the instruction to correct the problem that I was having they told that CDL B would be since they cant see what I’m doing so they cant correct my problem! All I want to do is drive and now I’m stuck CDL B with Air brakes, Hazmat and tanker endorsements. I’m a 20 yr Navy Veteran and with the proper direction I can and will accomplish anything!

florida auto insurance
April 10th, 2012

Hi all,We’ve had a few private messages so just to make clear…Vigillo has, does, and will always place the security and privacy of its carrier customers data as its number one priority. Whether discussing the 3P (shipper broker), PSP (pre employment screening) or Roadside Resume (Driver Scorecards), no carrier data will ever be made available to any third party without carrier consent. All of these new programs require carriers to “opt-in”. let us know if you have questions or concerns, and have a very Happy Holiday Season.Steve