TRUCKING AUTHORITY AND BROKERING LICENSE MUST BE SEPARATE
REGISTRATIONS. Motor carrier must apply for a bond and license to continue brokering. The two companies are completely separately, different name , FEIN, and may not even share payroll. CARRIER NOT IN COMPLIANCE subject to private right of action. Its open season on motor carrier that to do not comply.
Contracts for brokering will have to re written to account for the fact that Brokers who act as a motor carrier in order to get freight consideration are motor carriers for all intents and purpose. Brokers are not in possession of cargo, do not “hire” carriers, and are not insured for that risk.
Brokers are shippers, and cannot assume any transportation act reserved to the mode of transportation, such as trucker, with that broker becoming liable for the outcome of that Act. Brokers have no freight rates of their own as they are not a “MODE” of transportation, may not assess a fuel surcharge to a shipper unless that FSC charge is assessed by the motor carrier, may not have any beneficial interest in the carriers cargo (49 USC 80101 ), and must pay motor carrier for every load, regardless of claims.