Breach of load sheet
- Thread starter Henry
- Start date
30
If you accept freight from one of your customers and then sell that freight to another carrier, you are acting as a broker for that transaction. If the freight is originating in, or destined for the US, you must be a registered freight broker with FMCSA and have a 75K surety bond. Technically as an Ontario based broker, you should also operate a trust account that holds separately any monies you collect from your customers that belongs to the carriers and not co-mingle those funds with others. The fact that you operate a fleet of your own does not diminish your responsibility to be properly registered if you broker freight. Do lots of carriers broker freight without being registered, yes. Do brokers sell freight to and from the US without being registered, yes. It is always your choice to comply with the laws or not to comply.
I was told that load broker permits in Ontario were no longer a requirement for many years?
I don't think we maintain a trust account but paying the carrier is never an issue.
30
You should speak to your educated and experienced transportation lawyer about the legal requirements for brokering freight if you are domiciled in Ontario (Canada), have no US office, and some of the freight you are brokering is to/from the USA and some domestic Canada. It seems the answer is not the same depending on who you ask.
There's a few threads if you looked for them I'm sure you could find them.
Most importantly - hoping your shipment delivers intact without damages (knocks on wood).
Keep well,
Mike
There's a few threads if you looked for them I'm sure you could find them.
Most importantly - hoping your shipment delivers intact without damages (knocks on wood).
Keep well,
Mike
30
There is no Ontario Load Broker Certificates anymore, hasn't been for years, but the trust account provision was introduced into the Highway Traffic Act at the same time they did away with the Certificates. It is good that you pay your carriers on time, although it seems this US carrier of yours doesn't feel as sure about your payment terms as you do. Although our friend MikeJr thinks otherwise, a thorough reading of the relevant US regulations makes it quite clear that regardless of where your office is located, or which National Anthem you sing at a sporting event, the action of brokering freight that crosses into or across State lines, whether from inside or outside the US, requires the entity performing that brokerage to register as a Property Broker and possess the required 75K surety bond. It is not like climate change where you can discuss or argue the nuances of various scientific studies, this is US Federal law.
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Like I said, speak to an educated transportation lawyer, they are qualified to read and interpret legislation and also determine which jurisdiction differing legislation actually apply to. I am 100% not qualified to interpret the laws.
Keep well,
Mike
Keep well,
Mike
30
A quick "Google" of "does a Canadian freight broker need to register with FMCSA" will answer your question. There is ample information from these same transportation lawyers in various news articles from organisations such the Ontario Trucking Association, the Canadian Trucking Association, all stating that Canadian entities, both brokers and carriers, need to register. Not my interpretation of the regulations Mike, theirs. Again, I find it strange that after sitting through a lengthy dissertation by a US lawyer at an NTBA meeting on this very subject a few years ago, you still seem to think it doesn't apply to us Canucks? Oh well, to each their own, your chances of ever running afoul with US authorities is virtually zero, plus you save the 3-4K for the Surety Bond.
30
I still say speak to your transportation lawyer. Google LLB is not always crystal clear. Just my 2 cents.
Happy Friday,
Mike
Happy Friday,
Mike
30
Absolutely. One must be extremely careful making a decision based on information gleaned from internet websites. However, on this particular topic, the jury is in. Every Canadian Provincial Trucking Association recommends to their members who broker freight into or out of the US, be registered with FMCSA. A well known member of this site, PSTC, outlines the steps required to establish an Ontario based brokerage on his website, including the need to be registered if brokering into or out of the US. The NTBA (made up entirely of companies who broker freight) has confirmed to its members that registration is required if your operations include cross border traffic. I suppose it is possible that all of these organisations could be wrong, and that all of the money they spent getting legal opinions was wasted on incorrect interpretations of the law, but I tend to doubt that. I would be very, very interested to read a dissenting opinion on this topic from any reliable source. Mikejr, would you be able to send me a copy of the opinion you received that suggests Canadian brokers who handle freight to and from the US, do NOT need to register? To date, I have been unable to find anything that supports your position and look forward to hearing the other side of this discussion.
I spoke to an attorney yesterday in the transportation field.
He tells me that a load broker in Ontario does not need a licence to broker .
Who knows? there seems to be a lot of confusion.
Glad this is my last day as i am off on vacation for 2 weeks.
Merry Christmas and Happy Holidays to everyone!
He tells me that a load broker in Ontario does not need a licence to broker .
Who knows? there seems to be a lot of confusion.
Glad this is my last day as i am off on vacation for 2 weeks.
Merry Christmas and Happy Holidays to everyone!
30
There sure are a lot of opinions. My advice (several times in this thread) is to speak to a transportation lawyer in the jurisdiction that you operate.
loaders - I don't have to justify my advice above to you or anyone. I'm telling readers to speak to their lawyer so they can make their own decision. I'm sure we can agree on that, besides we are off topic for the thread.
Here's the original read: http://www.insidetransport.com/index.php?threads/compliance-with-us-rules-for-load-brokers.15597/
I'm off also until the 26th, Merry Christmas to all (except Grant at Grant Global and Tony at BGX)! When you celebrate, remember to make arrangements to stay over and/or get a ride home. Here's praying for very low tragic statistics this year.
Keep well,
Mike
loaders - I don't have to justify my advice above to you or anyone. I'm telling readers to speak to their lawyer so they can make their own decision. I'm sure we can agree on that, besides we are off topic for the thread.
Here's the original read: http://www.insidetransport.com/index.php?threads/compliance-with-us-rules-for-load-brokers.15597/
I'm off also until the 26th, Merry Christmas to all (except Grant at Grant Global and Tony at BGX)! When you celebrate, remember to make arrangements to stay over and/or get a ride home. Here's praying for very low tragic statistics this year.
Keep well,
Mike
Igor Galanter
Well-Known Member
20
30
Henry, if you asked your lawyer, "do I need a license to broker freight in Ontario"?, then yes, he is correct, you do not need a licence to operate a freight brokerage in Ontario. However, did you ask him that part of your brokerage operations included freight moving to or from the US? If you did, that answer is yes, you need registration with FMCSA which includes possessing a 75K surety bond and you will be issued a DOT#. There is no confusion about this, other than Mikejr's contention that there is still some ambiguity about this whole process and that there are some legal minds out there that don't agree with the vast body of opinion that does. By casting this doubt on the subject, we are doing a disservice to our industry. A level playing field, where all the players adhere to the same set of rules is the goal.
30
While you need it as a carrier is the 75k broker bond really going to do anything if you are about to go south? More costs for little to no protection on outside carriers part. Hell 75k for small sized broker is what a weeks worth of invoicing? you want it to do and mean anything make it a couple million. That would stop the fly by nighters and pretenders in their tracks and offer carriers a safety net instead of the usual write off that happens when a scumbag goes south.
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Am I the only one thinking at this point the carrier was smart af to demand payment at delivery with all this nonsense from Henry who's now gone for 2 weeks? Probably what thier AR department would be hearing after 30 days. Henry delays delivery so his truck can also be on site and then the carrier adds a layover to the bill. Makes sense. This appears to be an utter mess but I'm sure we're only getting half the story.
How would you have handled it Mark? its the first time its ever happened to me. My opinion was that a carrier shouldn't pick up a shipment unless they OKd the credit first?
What am i missing?
What if carriers picked up your freight, agreed to the payment term, then demanded payment from you?
What am i missing?
What if carriers picked up your freight, agreed to the payment term, then demanded payment from you?
15
I would know they were a legitimate carrier to send them in and if they decided I wasn't credit worthy after the fact I would email them the funds once I saw the load cleared customs at a MB or SK port of entry. If I felt they were stealing the freight or running it into Toronto I'd make sure someone I trust eyeball the freight and have them provide the payment once it was seen in good order.
Don't be a nitwit MIARK . Carriers that pick up freight after they agree to your terms, then try to change the agreement are carriers that shouldn't be in business. You pick up my freight, you should probably deliver it based on the contract. Things have a way of coming around. Sometimes satisfaction takes time! The fact that you seem to agree with this type of activity is troublesome and unfortunate! The truth comes out in the end!
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