As a result of a jurisdictional dispute between the Federal Government and the Province of New Brunswick, the Federal Government relegated the administration of inter-provincial and extra-provincial road transportation to the individual provinces affected.

The following provinces and territories do not regulate freight brokerage:

BRITISH COLUMBIA
ALBERTA
SASKATCHEWAN
MANITOBA
YUKON
NORTHWEST TERRITORIES
NUNAVIT
NOVA SCOTIA
NEW BRUNSWICK
PRINCE EDWARD ISLAND
NEWFOUNDLAND

ONTARIO: Found in the Highway Traffic Act, R.S.O. 1990, Section 191.0.1. (3) reads:

“(3) A person who arranges with an operator to carry the goods of another person, for compensation and by commercial motor vehicle, shall hold any money received from the consignor or consignee of the goods in respect of the compensation owed to the operator in a trust account in trust for the operator until the money is paid to the operator.”

To be 100% compliant with the law, monies received by the load broker from its customer, is to be placed in a trust account. The portion related to the carriage charges is then paid to the carrier, and the remaining difference transferred from the load broker’s trust account to its operating account.

Load Brokers operating between Canada and the USA are regulated by the US Federal Motor Carrier Safety Administration (FMCSA), exercising their jurisdiction over a shipment while that shipment is within US territory.

Please note: there is also a requirement for load brokers to register under the Unified Registration System (URS). The URS will eventually replace the “MC” registration system. United States Licensing Requirements Federal Motor Carrier Safety Administration (FMCSA) regulations state that freight brokers who arrange transportation intra-US; between the US and Canada; and between the US and Mexico, are required to have a Motor Carrier Property Broker’s License (MC#) backed by a minimum $75,000 USD surety bond or registered trust fund.