What it means
Federal law defines a broker as a person, other than a motor carrier, that "sells, offers for sale, negotiates for, or holds itself out ... as selling, providing, or arranging for, transportation by motor carrier for compensation."[1] FMCSA's rules say the same in plainer words: a broker "for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier."[2]
A broker may operate only if it is registered,[3] and it is registered once it is found "fit, willing, and able to be a broker."[4] A freight broker is not a customs broker; that is a separate license from CBP. RapidShips is neither: it runs its own dock.
Example
A shipper calls a broker to move a load from New Jersey to Ohio. The broker finds a registered motor carrier, agrees a rate with each side and keeps the difference, while the carrier's truck and driver do the moving.
Related
Related terms
- Freight ForwarderA freight forwarder arranges the transportation of other people's shipments, often consolidating them; U.S....Glossary
- Customs BrokerA customs broker is a person or company licensed by U.S. Customs and Border Protection to conduct customs...Glossary
- Third-Party LogisticsA third-party logistics provider (3PL) is a company that performs transportation, warehousing or other...Glossary
- ShipperThe shipper is the party that tenders goods for transportation, usually the seller; in trucking the shipper...Glossary
Sources
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13102, Definitions,” Federal statute. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “49 CFR § 371.2, Definitions (brokers),” Federal regulation. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13901, Requirement for registration,” Federal statute. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13904, Registration of brokers,” Federal statute. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.