Can a Freight Broker Own Trucks?

May 26, 2025

Can a Freight Broker Own Trucks?

Yes, a freight broker can own trucks. Traditionally, brokers operate as non-asset-based intermediaries who connect shippers with carriers. While most brokers focus on coordinating logistics without owning trucks, some choose to expand by operating their own fleet.

This article will explore the legal implications of owning trucks as a freight broker and the pros and cons that come with it, so let’s get right into it.

Legal Considerations for Freight Brokers Owning Trucks

Brokers already follow regulations to legally arrange freight, such as acquiring a brokerage license. However, to become carriers and operate their own fleet, they must also comply with a new set of legal responsibilities.

Carrier authority

Freight brokers must apply for carrier authority through the Federal Motor Carrier Safety Administration (FMCSA). This is separate from broker authority and is legally required to move freight using company-owned or leased trucks.

The process for applying for a carrier authority varies depending on your current registration status with the FMCSA:

If you have never registered with the FMCSA and don’t have a USDOT number, you must apply through the Unified Registration System (URS). The processing time is between 20 to 25 days. It can extend to 8 weeks if extra reviews are required.
If you already have a USDOT number and only want to add another authority to your existing registration, you’ll need to use the FMCSA’s legacy registration system. This option requires a credit card payment. Existing applications can take 45 to 60 days to process.

Types of carrier authority

The type of carrier authority you apply for depends on what kind of freight you’ll be hauling. Main ones include:

Motor carrier of property (except household goods): Carriers that transport regulated commodities, excluding household goods.
Motor carrier of household goods: Carriers that transport only household goods for the general public.
United States-based enterprise carrier of international cargo (except household goods):
U.S.-based carriers transporting international cargo, excluding household goods. The cargo must originate from or be destined for a foreign country.
United States-based enterprise carrier of household goods: U.S.-based carriers transporting household goods originating from or destined for a foreign country.

Not all truck operators need carrier authority. Exceptions include private carriers that move their own cargo, for-hire carriers that only haul exempt commodities (like produce or newspapers), and carriers operating only within federally designated commercial zones.

Insurance policy requirements

Motor carriers must meet certain requirements before the FMCSA can grant them operating authority. These are the main types of insurance required by the FMCSA:

Public liability insurance (BMC-91 or BMC-91X): Covers injuries and property damage resulting from accidents involving a motor carrier’s vehicles. The minimum coverage limits are $750,000 for general freight, $1,000,000 for oil transport, and $5,000,000 for hazardous materials.
Cargo insurance (BMC-34 or BMC-83): Protects against loss or damage to the freight being transported. It’s required for carriers transporting household goods. The minimum coverage is $5,000 per vehicle and $10,000 per occurrence.
Surety bond or trust fund (BMC-84 or BMC-85): A $75,000 bond that ensures brokers can pay shippers and carriers in the event of contractual or payment disputes.

Tip: If you operate as both a freight broker and carrier, consider establishing two distinct legal entities, one for your freight brokerage operations and the other for your carrier services. This separation can reduce liability exposure.

Insurance companies prefer this structure because it clearly defines the risk associated with each operation.

Safety standards

To become a trusted carrier, you also need to adhere to many transportation industry safety regulations. Here are some key areas.

Driver qualification

Ensure all truck drivers have a valid commercial driver’s license (CDL) for their vehicle class.
Drivers require a current Medical Examiner’s certificate confirming they are physically qualified to operate commercial motor vehicles (CMVs).
Maintain driver qualification files (DQFs) for each driver. The files should contain their employment applications, driving records, and other key documents.

Hours of service (HOS) compliance to avoid fatigue

Drivers are limited to 11 hours of driving after 10 back-to-back hours off duty.
Drivers are obligated to take a 30-minute break after eight straight hours of driving.
Keep accurate records of drivers’ HOS.

Vehicle maintenance and inspection

Carriers must perform pre-trip, post-trip, and periodic inspections of their trucking company’s vehicles.
Detailed records of all maintenance and repairs need to be kept for each vehicle.
Vehicles that don’t meet safety standards need to be taken out of service until issues are resolved.

Controlled substances and alcohol testing

Drivers should undergo testing before operating a CMV.
Random testing must be conducted throughout the year.
Drivers involved in certain accidents have to be tested promptly.
Carriers need to maintain records of all testing and results.

Advantages of Owning Trucks as a Freight Broker

Owning trucks can transform a brokerage’s operations, offering several benefits:

Increased profit margins. Operating your own fleet can lead to higher profit margins by capturing revenue that normally goes to external trucking companies. You can manage costs effectively and hold on to a larger share of the payments.
Greater control over shipments and logistics. Owning trucks gives you greater operational control since you won’t rely on third-party motor carriers and trucking companies. You determine the transportation schedules, routes, and delivery times.
Strengthened customer relationships. With your own fleet, you can respond more quickly to customer needs, boosting satisfaction and fostering loyalty. This setup gives you more freedom to adjust routes and service offerings to match a client’s requirements, leading to repeat business and even referrals.
Improved market positioning. Owning trucks can position your freight brokerage as a one-stop shop for clients seeking an end-to-end solution.

Disadvantages of Owning Trucks as a Freight Broker

While running your own fleet has its upsides, there are also some challenges you should consider:

High operational cost. Buying and maintaining commercial trucks requires a significant financial investment. Besides the initial acquisition cost, there are ongoing expenses like fuel, insurance, maintenance, and driver wages. Managing these costs can be challenging, especially for freight brokers who are used to the relatively low overhead of traditional brokerage operations.
Increased regulatory compliance. You’ll have to meet extra regulations as a carrier, including vehicle inspections, driver qualifications, hours-of-service rules, and safety audits.
Increased operational complexity. Managing a fleet involves overseeing scheduling, route planning, and vehicle maintenance. Juggling these responsibilities while running your freight brokerage can be tricky. The divided focus can lead to mistakes and reduce the quality of your brokerage or carrier services.

FAQs

1. How does owning trucks affect a freight broker’s business model?

Owning trucks changes the freight broker’s business from a non-asset model to an asset-based one. This adds responsibilities like vehicle maintenance, driver management, and insurance.

2. How does owning trucks impact freight brokerage startup costs?

It significantly raises a freight broker’s startup costs. In addition to the standard broker setup costs, you’ll need to pay for equipment, divers, insurance, maintenance, and other trucking infrastructure.

3. Is it better to own trucks or work only as a broker in the freight industry?

It depends on your freight brokerage’s goals and resources. Staying non-asset gives you flexibility and lower risk, while owning trucks can offer more control and higher potential profits. However, ownership also increases your expenses.

4. Can owning trucks improve a freight broker’s profit margins?

Yes, but only if managed well. Owning trucks lets your freight brokerage keep more of the shipping revenue. However, it also increases expenses. Profit margins may grow, but so does financial risk.

Final Thoughts

Freight brokers can own trucks. However, this business model has added responsibilities, costs, and legal considerations. For some brokers, it can be a smart move to grow their business and boost profits. For others, it may be better to stick with the traditional freight brokerage model.

Before deciding, weigh the pros and cons carefully and ensure it aligns with your long-term goals.

If you’re serious about growing your freight brokerage, whether by adding assets like trucks or simply building a stronger foundation, the 90-Day Freight Broker Course can help.

You’ll learn how to:

Launch a legally compliant brokerage
Find and negotiate with shippers
Build strong carrier relationships
Understand transportation law and insurance
Master the day-to-day operations that keep your business running

With over 250 videos, contract templates, and real-world guidance, this course gives you the tools to launch and scale your freight brokerage the right way.

Discover 90-Day Freight Broker today and take the next step towards building a profitable freight business.

Sources: