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ICC MC 172093
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Certified Transportation Broker
Third Party Specialists Since 1977
Yes, We Can Do It!

Virginia Hiway, Inc. now VHI Transport


Carrier-Broker Comparisons 
Item Carriers Brokers
Function: Transport Goods Arrange for transportation
Engagement: Specific custom contracts Specific custom 
contracts
Control: Via Contract - driver Via Contract - company
Size: 450 Billion Est. 142 Billion Est.
Authority: F.H.A.  F.H.A.
Law : U.S. Code U.S. Code
Gen. Liability: Primary Contingent
Surety: No Yes
Cargo: Primary Contingent
Claim Processing: Primary Primary
Hold Harmless: Yes Yes
Strength of H.H.: Balance 
sheet/insurance
Balance 
sheet/insurance
ESSENTIAL DIFFERENCES
Item Carriers Brokers
One Stop Shopping: Biased to own equipment Focused on task
Market Expertise: Focus on own equipment Must know daily dynamics
Overhead: Heavily capitalized Low overhead
Equipment Control: Through own drivers Through tight company contracts
Market Partnerships: Uses competition Partnering with many providers
Flexibility: Finite Unlimited
Double Jeopardy: Protection 
via contract
Protection 
via contract
CONTRACT LANGUAGE THAT RESTRICTS
  1. Contract asks for carrier authority.
  2. To provide carrier services!
  3. Equipment supply commitment as a carrier.
  4. Performance standards of a carrier.
  5. Carriers equipment and drivers.
  6. Hazardous material provisions.
  7. Freight loss or damage.
  8. Insurance provisions.
Summary
It is estimated that currently 1/2 of all domestic trucking is moved through 3rd party firms. Just as there are good and bad carriers, so it is with brokers. Good brokers however will give their shipper customers the level of legal protection commensurate with risk return opportunities in the market place. 
 

 

 

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