FMCSA Broker Authority: What It Means for Your Supply Chain

The Federal Motor Carrier Safety Administration (FMCSA) regulates freight brokers operating in interstate commerce. Before a company can legally arrange transportation of cargo by motor vehicle across state lines, it must obtain FMCSA broker authority — officially known as an MC Number (Motor Carrier Number) with broker designation.

Obtaining broker authority is not a simple formality. The FMCSA requires:

• A completed application with business and principal information
• A $75,000 surety bond or trust fund agreement (the BMC-84 or BMC-85)
• Designation of process agents in every state where the broker operates
• Payment of application and filing fees

The surety bond is particularly important. It exists to protect shippers and carriers if the broker fails to pay. If a broker collects payment from a shipper but does not pay the carrier, the surety bond provides a path for the carrier to recover losses — and for the shipper to avoid liens on their freight.

Shippers often assume that if a company calls itself a freight broker, it is legally authorized to broker freight. That assumption is dangerously wrong. Unlicensed brokering is illegal, and working with an unauthorized broker exposes shippers to significant risk.

Risks of using an unlicensed broker:

• Carrier Non-Payment: If the unlicensed broker does not pay the carrier, the carrier can place a lien on the shipper's freight or sue the shipper directly for payment — even though the shipper already paid the broker.
• No Surety Protection: Unlicensed brokers do not carry the $75,000 FMCSA surety bond. If something goes wrong, there is no financial backstop.
• Insurance Gaps: Unauthorized brokers often fail to verify carrier insurance properly. If an uninsured carrier damages your freight, you have no recourse.
• Legal Exposure: In some jurisdictions, shippers who knowingly use unlicensed brokers can face regulatory scrutiny or joint liability for operating without proper authority.

The good news is that verifying broker authority takes less than 60 seconds.

Every shipper should verify broker authority before tendering freight. The process is free and immediate:

1. Visit the FMCSA SAFER website at safer.fmcsa.dot.gov
2. Enter the broker's MC Number, DOT Number, or company name
3. Review the Company Snapshot for:
   • Active operating authority status
   • Broker designation (not just carrier authority)
   • Current insurance and bond on file
   • No out-of-service orders or pending revocations

Core Logistics Group's broker authority number is MC-1473691-B. We encourage every prospective shipper to verify our authority through the FMCSA database. Transparency is the foundation of trust in logistics.

The $75,000 surety bond is the minimum financial protection required by FMCSA, but it is not the only protection shippers should look for. A professional broker carries multiple layers of financial and legal protection:

• Surety Bond (BMC-84): The FMCSA-required bond that protects carriers and shippers against broker non-payment.
• Contingent Cargo Insurance: Covers cargo damage when the carrier's insurance fails or is inadequate. This is broker-specific coverage that many small brokers skip.
• General Liability Insurance: Covers bodily injury and property damage arising from the broker's operations.
• Errors and Omissions Insurance: Covers professional liability for mistakes in load tendering, documentation, or dispatch.

Core Logistics Group maintains all four of these coverage layers. When you tender freight to us, you are protected by a comprehensive insurance stack — not just the minimum bond.

Shippers should treat certain broker behaviors as immediate red flags:

• Reluctance to provide an MC Number or DOT Number
• Brokerage rates that seem unrealistically low (often a sign of cash flow problems)
• No written contract or rate confirmation
• Payment terms that demand prepayment without established credit terms
• Inability to provide a certificate of insurance or bond verification
• Carrier complaints about payment delays (check Carrier411 or industry forums)

The freight brokerage industry has unfortunately attracted bad actors who operate without authority, skip bonds, and disappear when problems arise. Protecting your business starts with 60 seconds of due diligence on the FMCSA website.

FMCSA broker authority is the baseline requirement for legal, ethical freight brokerage. It is not a differentiator — it is a prerequisite. Every broker you work with should have it, and you should verify it.

Core Logistics Group is proud to operate with full FMCSA broker authority (MC-1473691-B), a $75,000 surety bond, contingent cargo coverage, and a carrier network of over 150,000 vetted providers. We do not just meet the regulatory minimum — we exceed it.

Contact Core Logistics Group for freight brokerage services backed by licensed authority, financial protection, and disciplined execution.