What is the difference between a motor carrier and a broker?
This question was sent in by e-mail from one of our readers.
Accidentally his e-mail address was lost during our resent server expansion. We decided to post the answer here since it is a very common question from many people.
Simply put, a motor carrier is any person, partnership, corporation, etc., that provides truck transportation. A broker is any person, partnership, corporation, etc., that arranges for the truck transportation of cargo belonging to others by utilizing motor carriers to provide the actual truck transportation.
Normally a Broker does not assume any responsibility for the cargo and usually does not take possession of the cargo. Both carriers and brokers must register with FHWA and have specific insurance and legal process agents. A process agent is a representative upon whom court papers may be served in any proceeding brought against a motor carrier or broker. Motor carriers must list a process agent for each state. Brokers are required to list process agents in each state in which they have an
office and in which they write contracts.
