Another Classic TQL comment

I have heard an awful lot of people talking about shippers getting MC # and posting on loadboards to negate the need/benefit of brokers...

Well, there is an inherit defect to this line of thinking. An MC# (Motor Carrier # originally, now Operating Authority) is granted to one of the following entities:

Motor Carrier of Property (except Household Goods)
Motor Carrier of Household Goods (Moving Companies)
Broker of Property (except Household Goods)
Broker of Household Goods
US-based Enterprise Carrier of International Cargo (except Household Goods)
US-based Enterprise Carrier of International Household Goods
Freight Forwarder
Motor Passenger Carrier
Non-North American Domiciled Motor Carrier
Mexico-based Carrier for Motor Carrier Authority
Mexican Certificate of Registration for Foreign Motor Carriers

Nowhere do I see "Shipper," "Manufacturer," or any of the like.

The obvious rebuttal that I anticipate is that the shipper could apply for broker authority. While in theory, this is correct, this would be prohibited by a reciprocation of 49 CFR 371.2(a), where a broker is defined as "... a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier," and 49 CFR 371.9(a): "A broker shall not charge or receive compensation from a motor carrier for brokerage service where:(1) The broker owns or has a material beneficial interest in the shipment or (2) The broker is able to exercise control over the shipment because the broker owns the shipper, the shipper owns the broker, or there is common ownership of the two."

You see, by legal definition, to be a broker, you have to arrange the shipment for compensation. And, you CANNOT receive compensation for any shipment you own, or where you are under common ownership (or, by inference, are) the shipper.

So, to apply for OP-1 authority as a broker, you would be certifying under penalty of perjury that you were a broker, when you were not. Now, not only do you risk administrative sanctions, such as fines and revokation of authority, you also commit perjury, a Federal felony, punishable by criminal penalties.

The system was designed that way for a reason. There is no "quick-fix." Shippers cannot get authority to be a shipper. So, if a board requires an MC number, you'll be dealing with a Broker or Freight Forwarder.

Also, if you were to deal with a shipper (who wouldn't have operating authority), you wouldn't have the protection of a BMC-84 bond or BMC-85 trust. Non-payment would result in lengthy and costly litigation. There are a lot of loopholes, and if a small carrier or O/O tries to bring action against a major corporation (shipper), I see the corporation and its expensive legal team winning.

I've identified several loopholes (I did attend law school prior to entering logistics, but I'm NOT a bar-certified attorney), and I would be more than willing to share them, but this is not the time, nor the place.

-Chris

 

" shippers cannot get authority to be a shipper" and you claim to have attended law school, maybe as a janitor but not in class.

 

"You want $2/mile for a dry van? I don't pay reefers that kinda money"



Me: click

 

A shipper can post all the lds. they have coming from their place and not need any dot or icc number. Just the people doing the hauling.
And I only went to high school...

 

Shippers can also have captive (wholly owned) brokerage firms who arrange for the transportation of their parent company's freight.

 

Holy moly.. Tql gave me a load today.. 1040 miles... For $3100... Unreal

 

Alway's Alway's call the shipper and receiver for the address, TQL get's it wrong about 30% of the time.

 

Hi I'm new to this forum and pretty new to this industry. I just signed up with TQL, and your comments are telling me to cancel my account right away.

 

Try them lol they're not always bad..

 

they have good and they have bad like all brokers. 90 percent of the time when I have moved a load for them its the rate I want
do a good job , dont burn bridges, know when to let a load sit and dont haul cheap

actually about 98 percent of the time its the rate I want or need. If not , I dont haul it