The FMCSA requires freight brokers to renew their operating authority every two years to maintain compliance and stay active in the industry. This process helps ensure that brokers continuously meet regulatory standards.
Freight brokers are required to keep records of contracts and agreements with carriers and shippers as part of federal compliance. These documents are essential in case of audits and for resolving disputes that may arise.
Non-compliance with FMCSA regulations can lead to severe consequences, including suspension or revocation of a broker’s operating authority, preventing them from legally operating within the industry.
The $75,000 surety bond acts as a financial guarantee that protects carriers and shippers if the broker fails to pay them, ensuring accountability in transactions and providing security for the industry.
The FMCSA is the primary regulatory body overseeing freight brokers. They set licensing requirements, bonding, and compliance standards to ensure brokers operate legally and safely within the U.S.
