Canadian Licensing Requirements
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:
PRINCE EDWARD ISLAND
The following provinces do regulate freight brokerage:
ONTARIO: Effective January 1, 2006, Ontario Regulation 556/92 to the Truck Transportation Act and the Act itself are repealed.
One part of 556/92 has been retained in legislation and transferred to the Highway Traffic Act (HTA). Where the previous 556/92 required an application to obtain a Load Brokerage Certificate, the new addition to the HTA requires no such application or certificate, and will universally apply to all companies who broker freight “over-the-road” including motor carriers, warehousemen, customs brokers, freight forwarders, 3PLs and freight brokers. 556/92 of the HTA speaks mainly to the requirement that all parties who broker freight must maintain a trust account to hold monies payable to the carrier.
QUEBEC: Presently, the Commission des transports du Québec Section 332 requires that a “transport service intermediary” (any person who finds a carrier for the account of his client) register with the CTQ. Person can be a freight forwarder, a forwarding agent, a broker and so on, and corresponds to one of the following situations:
(1) concludes a contract in Québec
(2) has a place of business, an office or a business address in Québec, a post office box or a telephone number
(3) has a representative or an agent with a proxy to transact on her behalf in Québec
(4) generally, acts in Québec for gain in the scope of professional or commercial activities
Legal Disclaimer: Information on this page has been compiled as accurately as possible. However, the National Transportation Brokers Association, its Directors and/or Officers assume no liability whatsoever for its accuracy. Readers are advised to verify any information contained on this page before making any business decision.
United States Licensing Requirements
Federal Motor Carrier Safety Administration (FMCSA) regulations state that freight brokers who arrange transportation in or through the U.S. are required to possess a Motor Carrier Number (MC#) backed by a minimum $75,000 (U.S. funds) surety bond or registered trust fund. The NTBA requires each member to possess a valid and current Motor Carrier Number.
The U.S. FMCSA regulation refers to load brokers as Motor Carrier Property Brokers. Information on registration in the U.S. can be obtained through the Federal Motor Carrier Safety Administration website. Confirmation of proper registration by a freight broker or carrier can be confirmed using the search tools on the website.
Ontario WSIB Requirements
If employing workers, Ontario-based freight brokers are required by law to register with the Workplace Safety and Insurance Board. For further information, visit the Workplace Safety and Insurance Board.
Freight Brokers are also required to obtain WSIB clearance certificates from all contracted carriers. You can obtain more information from the WSIB here: How to obtain Clearance Certificates.