Brokers with NO MC and NO Surety Bond...

  • Thread starter Thread starter Roca
  • Start date Start date
R

Roca

Guest
Why are carriers still taking freight from them?

Especially american freight?

1 - they aren't legal to broker any freight that touches US Soil.

2 - No surety bond means you don't have any recourse against the broker.

So why take freight from these guys?

Why not encourage the ones that pay their dues and have the correct documentation to broker freight?

Please all carriers give me your opinions on this as I don't understand how any of these fake brokers are still around.

Thank you.
 
Last edited by a moderator:
Supply and demand? They have a load, the carrier has a truck. Asset based businesses, such as a carrier can only make so much profit in a day -- in order to maximize that, the trucks need to be working. Often times, a carrier (especially a smaller one) will rely on one or two dispatchers for a sizeable fleet and they don't have time to make sure all the I's are dotted and T's are crossed. Does it hurt them in the long run? Maybe. It is a gamble.

Now, should they not take freight from these types of brokers? For sure! You ARE right; but how do we enforce it?
 
You can enforce it through the creation of a screening process for all potential customers. I'm sure you wouldn't give a truck to just anyone that called up, identified themselves as a shipper and requested a pick-up. The same applies to someone that calls and identifies themselves as a broker. Run some simple checks i.e, references from other carriers that do work for them, a valid MC# if the freight is to or from the US, number of years in business, affiliations with any trade organizations(NTBA or TIA), etc. I know that this can take some time, but it can be time well spent compared to chasing a deadbeat shipper or freight broker. A truck sitting, waiting for freight surely costs less than running a few hundred miles and not getting paid for it.
 
Brokers with no MC

I think you would be surprised how many brokers dont have an MC #, surety bond or even insurance.

I personally don't take freight from brokers without

MC #,
Surety Bond,
Insurance,
Been in business at least a year
and a
Proven track record of payments (D&B or Equifax)

I do a similar check on a carrier that is looking to rebroker freight to us as well.

Funny how we haven't been stung by a broker with a non payment since we put these policies in effect. If the broker is cutting these corners, my opinion is they are in it for the short term and maybe don't have any money to back themselves up. Do your homework who you to partner with!!
 
I also check phone and fax #'s as our own documents were altered to show our company name but a changed fax and phone. Anyone checking would see our reputation but be dealing with criminals.
 
NEW FORUM TOPIC for brokers with no MC ?

We have forums for lots of things double brokers, bad payers, good payers, etc.

How about a forum topic for brokers with no ICC, insurance and surety bond that are brokering US freight?

How do we get that started?
 
it is call FMCSA now...

but yes let's start a new section called;

NO MC NO SURETY BROKER LIST

so people can start ignoring these guys and then more of the good guys will get the freight, and these lowlife scumbags will be filtered out of business.
 
An MC is usually required for brokers to arrange REGULATED freight in the US. However no MC is needed if that broker is not dealing with the US or is brokering unregulated freight...ie what was referred to as "exempt" freight back in the day.

Also..don't forget that anyone can get an MC...well..anyone who has 300 bucks to spare. Just becuase you have an MC doesn't mean you're set up as a broker...becasue you still need to get the bond and the license.
 
Yes, anyone can get an MC #, however you must have the bond in place first. No bond, no MC#. I am not sure what you mean by a license Freight Broker. In any event, holding a brokers MC# on it's own, does not make you legitimate broker, but it does indicate that you at least want to operate legally. Anything that shows that the broker is serious about his business and wants to comply with existing regulations is probably a good indicator, but should never be taken as a guarantee of prompt payment. Only past experience can provide that.
 
Freight Broker said:
An MC is usually required for brokers to arrange REGULATED freight in the US. However no MC is needed if that broker is not dealing with the US or is brokering unregulated freight...ie what was referred to as "exempt" freight back in the day.

Also..don't forget that anyone can get an MC...well..anyone who has 300 bucks to spare. Just becuase you have an MC doesn't mean you're set up as a broker...becasue you still need to get the bond and the license.
Click to expand...

Right now we're talking about US Freight, but obvisously it would be nice to see it for Canadian Freight too, and like I said earlier it applies to ANY LOAD TOUCHING US SOIL, even if it goes into or out of Canada.

and like it was said a Broker is only a broker if he has the MC and the Surety Bond, which is what we want to see.

So please Admins, open a new section called something like, "Brokers who don't have proper authorities, or Brokers who have NO MC and NO Surety Bond, etc."
 
Brokers who don't have proper "USA" authorities

Oh I like the idea of this forum!!

As a fully licensed "USA" freight broker, I can appreciate where these carriers are coming from. Wouldn't it be great to know who is registered and who isn't.

The key thing is exactly what Roca said,

"Any load touching USA soil."

You need to have an ICC (a surety bond is required to register). If the broker does not pay the carrier, the carrier can file a claim against the bond.

For the old timers out there they would remember that in Ontario, all brokers had to register yearly and put up a $10,000 bond. This is long gone now. But is still the case in The USA.

Not registered ?? Why and how are you brokering USA freight?
You shouldn't be.
 
Frtbroker said:
Oh I like the idea of this forum!!

As a fully licensed "USA" freight broker, I can appreciate where these carriers are coming from. Wouldn't it be great to know who is registered and who isn't.

The key thing is exactly what Roca said,

"Any load touching USA soil."

You need to have an ICC (a surety bond is required to register). If the broker does not pay the carrier, the carrier can file a claim against the bond.

For the old timers out there they would remember that in Ontario, all brokers had to register yearly and put up a $10,000 bond. This is long gone now. But is still the case in The USA.

Not registered ?? Why and how are you brokering USA freight?
You shouldn't be.
Click to expand...

OMG I actually have so much positive feedback!

Lets open this new section!!!
 
Roca said:
Right now we're talking about US Freight, but obvisously it would be nice to see it for Canadian Freight too, and like I said earlier it applies to ANY LOAD TOUCHING US SOIL, even if it goes into or out of Canada.

and like it was said a Broker is only a broker if he has the MC and the Surety Bond, which is what we want to see.

So please Admins, open a new section called something like, "Brokers who don't have proper authorities, or Brokers who have NO MC and NO Surety Bond, etc."
Click to expand...

Doesn't apply to any load touching US soil...unregulated freight (such as most agricultural products) can be brokered without a license or bond in the US..
 
MC authority for TIA and NTBA

I have to pose this question.

I know who TIA is in the USA, they require paperwork and operating authorities before you can become a member.

Does the NTBA ask that all their freight broker members have MC, surety bond, etc?

I am curious...
 
Pablo said:
Report them to the FMCSA they will be fined for unathorized brokering.
Click to expand...

No they won't...

The authorities have bigger fish to fry...

If it was this simple we wouldn't be talking about it...
 
You must log in or register to reply here.
Top Bottom