Freight brokers, who serve as intermediaries between shippers and carriers, must adhere to specific record-keeping requirements to comply with regulations, ensure accurate accounting, and maintain efficient operations. Among others, below are essential record-keeping requirements for freight brokers. Having awareness of these required documents is useful in civil cases against freight brokers when the crux of liability typically lies in documentary evidence. Freight brokers are required to keep records for a minimum period, often for at least three to five years, as stipulated by the Federal Motor Carrier Safety Administration (“FMCSA”) and other government bodies. More sophisticated brokers will maintain an organized system for storing electronic or paper records that allow for quick retrieval. Knowing what threads to pull will no doubt accelerate the discovery process.
- Broker-Carrier Agreements—Documentation of agreements with carriers, including signed contracts, rate confirmations, insurance information, and authority documentation (State and Federal DOT licensure as applicable).
- Load Information—Detailed records of each transaction including the shipper’s name and address, date of transaction, description of the good, quantity, and the agreed upon transportation charges.
- Bill of Lading—Copies of bills of lading or other shipment document that confirm the pickup and delivery of loads. A bill of lading is the document that reflects the shipping manifest, load/freight, destination point and destination, among other key details related to the freight.
- Carrier Qualification Files—Records of carrier qualifications, such as operating authority, safety ratings, insurance certificates, and W-9 forms for the carrier’s drivers.
- Financial Records—Accurate financial records of all transactions, including carrier payments, shipping invoices, and commission receipts.
- Insurance Documentation—Evidence of required insurance policies, including liability and cargo insurance certificates.
- Correspondence—All communication with shippers and carrier regarding brokerage services, disputes, service issues, and other relevant discussions.
- Claims and Disputes—Records pertaining to cargo claims, disputes, and resolutions, including relevant correspondence and agreement documentation. Naturally, this is likely to include correspondence regarding a crash, investigation, and witness statements in the event of an incident with the carrier. Brokers also may issue GPS devices and/or dashcams, the data from which the broker will likely retain.
- Audit Trails—Detailed logs that allow for the traceability of every transaction for auditing purposes and compliance with federal regulations.
- Compliance Requirements—Unsurprisingly, freight brokers must keep documentation that verifies compliance with all relevant federal, state, and local laws and regulations, including FMCSA requirements and Department of Transportation (“DOT”) regulations.
The nature and complexity of these records may vary depending on the scale of the brokerage, the geographic scope of operations, and the specific services offered.
If you or someone you know has been injured or killed in an accident with a commercial vehicle or 18-wheeler, it is imperative that you hire an experienced lawyer in commercial vehicle accidents so that all potential parties may be investigated. At times, a broker may bear some share of liability for its negligent or wholesale failure to conduct minimal safety verification for the carrier it selects. For a free consultation, please contact the law firm of Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-222-7211 or 1-800-870-9584.