Does a Freight Broker Need an MC Number?

When most people think of trucking as a profession, they generally picture someone in the driver’s seat of a large commercial truck trekking down a highway with goods in tow. However, the trucking industry features diverse roles for various people to fill. Freight brokers fulfill one such role.

Does a freight broker need an MC number? If you already know how to obtain an MC number, you can learn details about requirements for freight brokers from Federal Motor Carrier Authority Filings below. 

Who Are Freight Brokers?

Freight brokers act as go-betweens for carriers and shippers. They have numerous responsibilities and ensure the transfer of goods and commodities goes smoothly. Freight brokers manage fundamental duties, such as:

• Networking: A freight broker assists companies in securing services from carriers qualified to transport their goods. 
• Negotiations: Trucking companies and shippers rely on freight brokers to ensure fair shipping rates and deadlines. 
• Compliance: Brokers only work with carriers that comply with federal and state regulations. 
• Tracking: A broker can track the progress of a shipment to keep all parties informed. 

What Is an MC Number?

An MC number proves your operating authority. When the Federal Motor Carrier Safety Administration approves an application, it assigns the applicant a USDOT and an MC number. When you receive your MC number, you can participate in interstate cargo shipments and have more freedom to operate across the United States. 

An MC number has details about a carrier’s safety precautions, audit results, traffic incidents, and authorized inspections. You can use it to learn more about your carrier’s standing with the FMCSA and other trucking authorities. If you haven’t procured your MC number already, you should consider doing so if:

• You want to drive across state lines
• Other companies contract you to transport their goods
• You haul goods weighing more than 10,000 pounds
• You transport materials classified as hazardous

Most carriers need an MC to comply with federal regulations and operate freely. But does a freight broker need an MC number?

Does a Freight Broker Need an MC Number?

Freight brokers’ jobs are similar to brokers of property or real estate brokers. They serve as intermediaries between the shipping and carrying parties. While they have an essential function within the trucking industry, freight brokers don’t necessarily drive trucks. 

Would a freight broker need an MC number? Freight brokers do need MC numbers to obtain the authority necessary to perform their jobs correctly. However, their operating authority has a few different requirements than the operating authority granted to carriers. 

MC Application Paperwork Requirements

A freight broker’s MC application process looks similar to a carrier’s. They must complete the following steps to obtain their authority:

• Complete a BOC-3 form: The BOC-3 application requires extensive legal information about the applicant. Purchasing services from FMCA Filings can streamline the completion process. 
• Provide proof of insurance: Brokers must cover accidents and failures with their insurance policy. This insurance typically comes in the form of a trust fund or a surety bond. 
• Pay required fees: Most paperwork within the trucking industry has fees attached. Those fees may change, depending on the subsequent paperwork you submit. 

Once you can fulfill these requirements, you can apply for an MC number for freight brokers. However, your role as a freight broker means that your application diverges from the average carrier’s application. 

Other Requirements for Freight Brokers

Freight brokers don’t follow the same application process as carriers turn for turn. After all, their job differs greatly from a truck driver employed by a carrier. While they work closely with carriers to help them navigate shipping prices and deadlines, they have no authority over the vehicle fleet or the transportation experience. 

Instead, they manage other aspects that influence how carriers transport goods. Below, you’ll discover how broker requirements differ from carrier requirements.  

Surety Bond

While carriers have insurance coverage, freight brokers use surety bonds to protect their dealings. Surety bonds work similarly to insurance policies. The bond company will pay for the damages up front to cover any losses.

However, the broker doesn’t pay continuous premiums for their surety bonds. They must pay the amount owed back to the bond company. You must purchase a bond of the minimum amount of $75,000 to obtain your MC authority as a broker. Complete a BCM-84 to apply.

Broker’s License

Finally, a broker must submit an OP-1 form to obtain their license. Most parties involved in the trucking industry will fill out an OP-1 at some point. As a freight broker, you’ll complete form OP-1(FF). 

Apply for Your MC Number Through FMCA Filings

Does a freight broker need an MC number? While they need an MC number, they follow a different application process than a carrier. FMCA Filings simplifies this experience. Whether you’re getting an MC number without a truck or updating your carrier information, trust our services for secure compliance.