Broker Authority
What is broker authority? Broker authority is an FMCSA-issued license that allows a freight broker to legally arrange freight transportation between shippers and motor carriers.
Full definition
Broker authority is distinct from motor carrier (MC) authority. The same MC number system is used, but the operating-authority code differs: brokers receive Property Broker authority, while carriers receive Motor Carrier of Property authority.
Brokers must also post a $75,000 BMC-84 surety bond (or BMC-85 trust fund) and designate a BOC-3 process agent in every state. The bond is the carrier's main protection if the broker fails to pay on a load.
A growing number of owner-operators run dual authority — carrier and broker — to capture broker margin on loads they don't haul themselves. The compliance and bonding requirements are real and shouldn't be underestimated.