1.

What is a broker?

Generally speaking, a broker is a person or an entity other than a motor carrier that arranges for the transportation of property by a motor carrier for compensation. A broker does not transport the property and does not assume responsibility for the property.

2.

What is a freight forwarder?

A freight forwarder is a person or entity that holds itself out to the general public as providing transportation of property for compensation and in the ordinary course of its business:

• Assembles and consolidates, or provides for assembling and consolidating, shipments and performs or provides for break-bulk and distribution operations of the shipments;
  
  
• Assumes responsibility for the transportation from the place of receipt to the place of destination; and
  
  
• Uses for any part of the transportation a rail, motor or water carrier subject to the jurisdiction of either FMCSA or the Surface Transportation Board.

3.

What is freight interlining?

To interline a shipment is to transfer the shipment between two or more carriers for movement to final destination. For example, where the point of origin is Washington, DC and the final destination is Los Angeles, CA, Motor Carrier “A” may transport a shipment from Washington, DC and then interline with Motor Carrier “B” in San Antonio, TX. Motor Carrier “B” will then complete the transportation of the shipment to Los Angeles, CA.

4.

Does FMCSA require an interline carrier to obtain operating authority?

FMCSA requires all non-exempt for-hire interstate motor carriers to obtain operating authority. However, a motor carrier that is performing part of a single continuous transportation as an interline operation can perform that service under either its own operating authority or the authority of the originating motor carrier.

5.

Does a broker process loss and damage claims?

No, a broker assumes no responsibility for the shipment and does not touch the shipment. A claim must be filed with the appropriate motor carrier, which usually would be the delivering carrier or the carrier causing the loss. Brokers may, however, assist shippers in filing claims with the motor carrier on the shipper’s behalf.