The job of a freight broker in Canada is much the same as in the United States: connecting shippers that have freight with carriers that can move it. A Canadian freight broker works every day with shippers and carriers in Canada, and many also arrange loads that cross into the United States.
Freight brokers are also called property brokers, transportation brokers, load brokers or truck brokers. Whatever the name, they play a large part in moving goods within Canada and across the border.
To learn how a broker differs from an agent, see the difference between a freight broker and a freight agent.
Canadian licensing requirements
Freight brokerage in Canada is regulated province by province, and the rules differ from one province or territory to the next. Some provinces have rules that apply to people who arrange truck transportation for others, and others have few or none. These rules can change, so this article doesn't state what any particular province currently requires. Before you operate, check with the transport ministry of each province or territory where you'll have an office or arrange freight.
When you contact a ministry, ask:
- Does the province require a freight broker or transportation intermediary to register or hold a licence?
- Are there financial requirements, such as a trust account, bond or other security for money owed to carriers?
- Do the rules depend on where your office is, where you sign contracts or where the freight moves?
- Where can you read the current rule in writing?
Keep a copy of what you're told and the source, and check again from time to time, because rules can change.
Loads into the United States
If you'll arrange loads that move into the United States, you'll also need U.S. property broker authority from the Federal Motor Carrier Safety Administration (FMCSA). That means applying for broker authority (the fee is $300 for each type of authority), filing a BOC-3 that names process agents in each state where you have an office and write contracts, and keeping $75,000 in financial security on file, either a BMC-84 surety bond or a BMC-85 trust fund (FMCSA broker registration; 49 CFR 387.307). If claims draw that bond or trust below $75,000, the authority is suspended unless the security is restored within 7 business days of FMCSA's notice. U.S. brokers must also keep a record of each brokered transaction for three years (49 CFR 371.3).
Next steps
For a fuller guide to starting out, including training, costs and building your customer base, read how to become a freight broker in Canada. For freight broker education, visit Freight University. If you plan to open a brokerage under your own authority and want help with setup, see freight brokerage setup.
Disclaimer: This article is general information, not legal advice. Rules change, so confirm current requirements with the provincial transport ministry and FMCSA before making any business decision.