Nov 07, 2017 • Brokers

Broker Carrier Agreement

Broker Carrier Agreement

A broker carrier agreement is required in order to have a freight contract that will ensure a motor carrier hauls truck freight for the freight broker.

Broker Carrier Agreement

A freight broker may negotiate a rate with a carrier before agreeing to freight contract terms and signing a Broker Carrier Agreement. Let’s say a freight broker posts a load on a load board that needs to be picked up from Dallas and delivered to Kansas City.

The freight broker may offer to pay the carrier $1,000 but the carrier wants to negotiate a higher rate. Eventually, the two parties agree that $1,300 is a fair rate and they wish to proceed. This is where a Broker Carrier Agreement comes in.

A Broker Carrier Agreement will include things like:

The Broker and Carrier’s Information (including MC#)
Agreement Date
Days to Pay
Procedures for Invoicing
Liability and Insurance

Broker Carrier Agreement Example

Carriers want to know when they will be paid, what sort of liability they might be required to have any other stipulations of the truck load before considering to haul it. Without the broker carrier agreement, truck freight cannot be booked and subsequently hauled.

Find Freight Carriers on Truckloads Load Board

Brokers can’t come to an agreement without having an interested carrier in the mix. So how do freight brokers find carriers? This is where tools such as load boards come in to play.

Truckloads free broker load board is one of those with unmatched technology. It provides you with access to over 100,000 verified freight carriers who are qualified to haul your freight. It’s easy to post truck loads via CSV or TMS and you can keep tabs to see which freight carriers have viewed your load and how many times.

Truckloads also has unique features such as Truck Search which allows you to search for available trucks in a specific location. View a carrier’s Safer Watch Rating to confirm if they are qualified and if you’re interested, contact the freight carrier directly. Now you can move more truck freight than ever before!

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TagsFreight Broker

Different Types of Trucking Jobs [p]Truck driving is a challenging profession that requires incredible mental fortitude. You are constantly on the road, away from family and the warm embrace of your home. On top of that, you are driving most of the time, so there is hardly time for any rest. Therefore, it is a good idea to choose a suitable trucking job that fits your schedule and allows you to relax. There are plenty of opportunities you can explore![/p] [p]There are plenty of opportunities you can explore! [/p] [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-1.jpg" alt=""] <h2></h2> [p][b]Dry Van Hauling[/b][/p] [p]Dry van hauling is tailor-made for beginner truckers. You only have to deliver non-perishable items from one place to another. The loading and unloading are also done by the client, so you only have to focus on the driving.[/p] [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-2.jpg" alt=""] <h2></h2> [p][b]Freight Trucker[/b][/p] [p]Freight is a very broad term, so anything other than dry goods come under the definition. It's tough being a freight hauler as you are expected to transport all kinds of goods. They can be hazardous, liquid materials, or anything that dry haulers are not allowed to carry.[/p] <h2></h2> [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-3.jpg" alt=""] <h2></h2> [p][b]Oil/Gasoline Tanker[/b][/p] [p]Hauling a tanker is no easy task. You have to be focused every moment and take care of the cargo at all times. One mistake could result in a horrible accident. Tanker haulers are some of the most sought-after trucking jobs in the industry. The high risk means there is a high reward as well. So, it is natural for truckers to look for tanker jobs.[/p] <h2></h2> [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-4.jpg" alt=""] <h2></h2> [p][b]Refrigerated Goods Transport[/b][/p] [p]Transporting refrigerated goods does not require a lot of skill, but it involves being punctual. You cannot fall behind the deadline, or the entire cargo can spoil. There is a lot of responsibility on such truckers but the good thing is that these jobs are close to home. You are not always expected to transport goods to far-off places.[/p] [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-5.jpg" alt=""] <h2></h2> [p][b]Flatbed Trucker[/b][/p] [p]Any item that is too large or has an irregular shape, is transported by flatbed truckers. Flatbed trailers are open, which means the cargo is exposed to the elements at all times. The job requires extreme skill, to deliver the goods safely and on time. Trucks, cars, heavy machinery, and other similar items are transported using a flatbed hauler.[/p] [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-6.jpg" alt=""] <h2></h2> [p][b]Regional Trucking Jobs[/b][/p] [p]If you are not worried about earning the big bucks and you are happier near your home, then regional trucking is for you. Such a job is easy and does not pay much, but at least you don’t have to be away from home all the time.[/p] [img src="https://truckerpath.com/uploads/2021/05/202105-TP-BLOG-Different-Types-of-Trucking-Jobs-7.jpg" alt=""] <h2></h2> [p][b]Hotshot Trucking[/b][/p] [p]There is no need to be disappointed if you like trucking and you don’t have a semi. A class 3 or 5 truck can also do the job. Hotshot trucking is attaching a trailer to your small truck and transporting goods using that setup. Once you have the capital and experience to upgrade, you can shift to a semi and accept more serious trucking jobs..[/p] [p]What about you? Which one are you or which one would you want to try out? Comment below.[/p] <h2></h2> <h2></h2> [p][b]By Aldous Aldwin[/b][/p] [p] Signing off.[/p]

May 20, 2021 • Carriers

Freight Broker Bond [p] Want a freight broker license? You'll need a freight broker bond of $75,000 first.[/p] [h2]Freight Broker Bond[/h2] [p]The freight broker bond is one of the lesser known parts of being a freight broker but it’s quite simple, and once you get a better understanding of it, you should feel as comfortable with your freight broker bond as you do with getting car insurance.[/p] [h2]What is a Freight Broker Bond?[/h2] [p]A freight broker bond is a form of a surety bond, which is like an insurance policy for a contract, though it doesn't take the place of liability insurance. It is a legal commitment made by one party to another to pay a certain dollar amount if the terms of a contract are not met. [/p] [p]In this instance, the bond protects a customer from losses if you don’t come through as well as giving carriers the peace of mind knowing they will be paid in a timely manner.[/p] [h2]BMC-84[/h2] [p] The BMC-84 is essential to your freight brokerage as it reassures carriers and companies that you have the backing to broker deals. BMC-84 is the bond for $75,000 and is required by law. It is necessary to cover payouts of possible claims (damages, broker negligence, failure to pay, etc). [/p] [h2]Applying for a Freight Broker Bond[/h2] [p]A freight broker bond can be acquired from any insurance agency such as Liberty Mutual, The Hartford, among hundreds of others. Alternatively, you can search for specific firms in your state who specialize in freight broker bonds. [/p] [p]When you're ready to select your agent of choice they will all require the same information to process your BMC-84: exact business name as it appears on the business license, the exact dollar amount for bond, business address, and all business/personal financial records. [/p] [p]You must pay a percentage of the freight broker bond up front before the agency will process it. Usually, this annual premium will be between $900-$2,000 depending on your credit. It can be paid for with a credit card or check in most instances and takes about 24 hours to process.[/p] [h2]Can I Get a Freight Broker Bond With Bad Credit?[/h2] [p]Yes, you can still get a bond. If you have bad credit it’s not impossible, but it will increase your cost to secure a bond which can run upwards of $2,000. Keep in mind that surety bonds do not affect your credit score so it wouldn't hurt to search around though it's best to start at the bigger agencies first. [/p] [p]The larger the firm the more freight broker bond providers they work with which increases your odds of being approved. Just remember the premium on the freight broker bond is a percentage of the bond itself, so if your credit is bad the premium will be higher. Even though you will have to pay more up front it allows you to open your business and provides an umbrella in case of any freight claims.[/p] [h2]Freight Broker Bonds and Claims[/h2] [p]Trucking is dangerous and things are bound to go wrong on the road from time to time. Customers will understand that. However, when things do go wrong, someone needs to be held responsible and pay the damages. Similar to a car accident, there will be a resolution and one party must pay out to the other.[/p] [p] This is why it is required for companies to maintain a $75,000 bond. If you're found responsible and must pay out on the claim, your bond will act as a line of credit to do so. Before being issued your bond you must sign a legal document to repay in full in the case of such a payout. [/p] [h2]Bonding Agency [/h2] [p]When selecting your bonding agency to try to use one who is also a Managing General Underwriter (MGU) bonding agency. MGU Agencies can and will help you through each stage of a claim. It is recommended to do everything possible to be proactive when issues arise on loads to prevent claims from being filed. Just like car insurance the more accidents, you have on your record the harder it is to get insured. Only here not being able to get a bond can cause you to go out of business as they are required to operate.[/p] [p]Remember DO NOT submit your proof of insurance directly to the FMCSA. The FMCSA requires that your insurance company submit the form and insurance certificate on your behalf.[/p] [h2] I Have a Freight Broker Bond, Now What? [/h2] [p] Now that you've covered your freight brokerage from potential claims with your freight broker bond, you can either continue to start your freight brokerage company or if you're ready, explore load boards to help you post loads that qualified carriers can view.[/p] [button-white href="https://truckerpath.com/blog/how-to-become-a-freight-broker/"]How to Become a Freight Broker[/button-white] [p]Freight brokers who use Truckloads have the ability to connect with over 100,000 qualified carriers ready to haul their freight. You can even track your loads to verify a carrier's location and ensure that your customers delivery is going according to plan. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=brokerbonds&utm_campaign=aug2"]Get Started With Truckloads Now[/button-green]

Jul 26, 2017 • Brokers

Trucker Terms [p] If you're going to make it in trucking these are the trucker terms you'll want to remember along with some good ole trucking slang you'll hear on the CB radio. [/p] [h2] Trucker Terms [/h2] [p] Being a trucker is not only a unique way of life, it also comes with a unique way of communicating that only those in the trucking industry probably can decipher and understand. [/p] [p] <strong> 10-4 - </strong> acknowledging something [/p] [p] <strong> 10-6 - </strong> busy right now [/p] [p] <strong> 10-8 - </strong> en route [/p] [p] <strong> 20 -</strong> location [/p] [p] <strong> 4-Wheeler -</strong> automobile [/p] [p] <strong> APU -</strong> authorized pick-up [/p] [p] <strong> Backhaul -</strong> retuning load to home location [/p] [p] <strong> Bear Trap - </strong> speed radar trap [/p] [p] <strong> <a href="https://truckerpath.com/blog/freight-contracts/">Bill of Lading</a> - </strong> document that details information regarding the goods being hauled by a carrier from a shipper [/p] [p] <strong> <a href="https://truckerpath.com/blog/what-is-a-weigh-station/">Chicken Coop</a> - </strong> Weigh Station [/p] [p] <strong> Chicken Lights - </strong> Added lights on and around a truck [/p] [p] <strong> Chocks -</strong>blocks placed in front and behind wheels to prevent truck from rolling [/p] [p] <strong>Cosignee - </strong>person who receives the goods [/p] [p] <strong>Cosignor - </strong>person who ships the goods [/p] [p] <strong> County Mounty -</strong> - county sheriff [/p] [p] <strong> <a href="https://truckerpath.com/blog/what-is-deadhead/">Deadhead -</a></strong> miles driven with no load [/p] [p] <strong> Dry Van -</strong>standard enclosed truck trailer [/p] [p] <strong> ETA -</strong> estimated time of arrival [/p] [p] <strong> Freightshaker -</strong> Freightliner truck [/p] [p] <strong> GCW (Gross Combined Weight) - </strong> combined wieght of tractor/trailer and load [/p] [p] <strong> Gear Jammer -</strong>speeding driver [/p] [p] <strong>Hammer Down -</strong> drive faster [/p] [p] <strong> Hopper -</strong> truck that empties load through bottom that opens [/p] [p] <strong> HOS -</strong>hours of service [/p] [p] <strong> Intermodal -</strong> shipping container freight [/p] [p] <strong>Jack-Knife -</strong>when trailer is pushed to the side of the tractor [/p] [p] <strong> K-whopper - </strong>Kenworth truck [/p] [p] <strong> Kingpin - </strong> pin where the axel wheel pivots [/p] [p] <strong> LTL (Less Than Truckload) -</strong> load less than 10,000 lbs. [/p] [p] <strong> Motor Carrier -</strong> person or company that is responsible for transporting goods via a commercial motor vehicle [/p] [p] <strong>P&D Driver -</strong> pickup and delivery driver locally [/p] [p] <strong>Payload - </strong>weight of the load [/p] [p] <strong>Peddle Run - </strong>route with lots of deliveries [/p] [p] <strong>Pete - </strong> Peterbilt truck [/p] [p] <strong>RC (Rate Confirmation) -</strong> the rate shipper or broker agrees to pay carrier to haul a load [/p] [p] <strong> Reefer -</strong> refridgerated truck trailer [/p] [p] <strong> Shiny Side Up - </strong> top of truck; don't crash or roll over [/p] [p] <strong> Sliding Fifth Wheel - </strong> fifth wheel that can be slid back to redistrubute weight on the axels [/p] [p] <strong>Trucking Authority -</strong>FMCSA approval to haul loads [/p] [p] <strong>Willy Weaver - </strong>drunk driver [/p] [h2] Using Trucker Path Along Your Route [/h2] [p] Now that you know the trucker terms and are talking like a real driver, it's time you use a tool that most truckers rely on to help them save time and money - the <strong>Trucker Path app. </strong> [/p] [p] Trucker Path is free to download and helps drivers: [/p] [ul] [li] Find truck parking with real-time updates [/li] [li] Browse through the list of amenities a location offers [/li] [li] Check to see if a weigh station is open or not [/li] [li] View Walmart locations and know if they allow truck parking [/li] [li] Compare diesel prices to save on fuel[/li] [li] Plan their route to show locations along their trip [/li] [li] Read through fellow drivers reviews of a location [/li] [li] Find restaurants near truck parking locations and much more! [/li] [/ul] [button-green href="https://truckerpath.com/trucker-path-app/?utm_source=blog&utm_medium=truckerterms "]Try Trucker Path Today![/button-green] [video id="EIs5Rk6xpm4"]

Oct 05, 2017 • Carriers