Car shipping brokers are required to carry an FMCSA surety bond and to be registered with their own MC number from the Department of Transportation. Here is what the bond is and why it matters to you.
What brokers do
Freight brokers and forwarders help shippers find the right carrier, negotiate rates and terms, prepare shipping documents like bills of lading, select carriers based on cost and safety history, arrange cargo insurance, and handle customs when needed. They do not usually move the goods themselves; they coordinate the pieces so cargo arrives on time and at a fair cost.
What a freight broker surety bond is
Also called a BMC-84 bond or property broker surety bond, it is required by the Federal Motor Carrier Safety Administration to operate as a licensed broker or forwarder. It is a financial guarantee issued by a surety company: if the broker fails to pay a carrier or otherwise breaches its obligations, the surety pays out up to the bond amount, and the broker must repay the surety.
The bond gives carriers and shippers recourse if a broker does not hold up its end, and it holds brokers accountable to federal safety and financial rules.
Bond specifics
- Brokers must post a bond of $75,000 as part of registration.
- It is filed under U.S. Code Title 49, Section 13906.
- The principal is the broker or forwarder; the obligee is the United States of America.
- Surety companies offer a range of coverage options to fit a broker's needs.
What it covers
The bond provides financial protection to shippers and motor carriers if the broker fails to fulfill its contractual obligations.
Conclusion
Every car shipping broker should have an active bond on file, and you can check it on the FMCSA site. Every broker reviewed on this site carries one. We give no space to brokers operating outside the rules.