|
Mr. Dwinell is a Professor of Transportation Brokering. He is the author of several Text Books on the subject, a frequent contributor to transportation industry periodicals. He uses his books and his DVD productions to instruct transportation entrepreneurs, attorneys, judges and juries in the intricacies of negotiating the movement of freight teaching virtually every week in his own Licensed* school in Arizona. The school www.loadtraining.com has trained over 16,000 individuals since 1987 and offers Journeyman and Master Broker Certification classes. He conducts Seminars as well as consulting for clients building Broker/Agent networks and to those writing software solutions to make the operation paperless.
His learning programs include, “ Transportation sales & marketing, Freight Rate Development, Negotiating and Positioning in the marketplace, Brokerage Operations and integrating with trucking and intermodal operations, Agency, Information accumulation and retrieval, Database development, Bookkeeping – The Load Master Ledger System, Transportation cash management- operations and theory, voluntary claims resolution, among others… He has started 5 brokerage and sold 4, currently operating www.Truckalocity.com (MC 360363) and has developed a network of Agents (Master Brokers) all throughout North America.
His principle theme is that there is one function of the FEDERAL Property Brokers License as provided for by FMCSA and DOT – to broker freight as a “travel agent” without liability... a feat that few, if any, accomplish. His programs are designed to instill the basics of Brokering Operations and Contracting so as to conduct business without liability. Matriculating Master Brokers learn how to conduct brokering without liability and in the presence of a fully liable motor carrier operation.
Please call 623-332-5199 to discuss fees for consulting.
TITLE 49 - UNITED STATES CODE OF FEDERAL REGULATIONS (CFR)
49 CFR 371 Brokers of Property
49 CFR 371.2 Definitions
A broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an Authorized carrier. Motor Carriers, or persons who employees or bona fide agents of carrier, are not brokers within the meaning of this section.
OPINION AS TO COMMON PRACTICE
There are many meanings of the word “broker” and “brokering” in common practice in surface and air transportation.
The Property Broker as defined above is “Licensed” by the FMCSA to provide brokering services. The only function of the Property Brokers License is to arrange transportation without liability. Note: any Authorized motor carrier can hire another Authorized motor carrier, as they have since time immemorial, without a “License”. The distinction in brokering types then is in the definition of “arrange transportation without liability” and “hire a motor carrier”.
In fact within the definitions by common practice, motor carrier to motor carrier “brokerings” are the most common type of surface transportation brokering in the United States. Licensed brokering without liability is the least common practice.
Let us examine the most common form of brokering in common practice, the “Truck Broker”. Truck broker is any person who has both “Authority” and “License” as in this case. The person with Authority, within its definition, “takes possession” of property for interstate transportation purposes. The Licensed broker does not take possession of property, but merely “arranges” transportation, and pursuant to Federal Regulation, Insurance* is NOT required to be a Licensed broker. On the other hand, Liability Insurance is required to obtain and maintain “Authority” to be a “carrier”.
All of these definitions are tested in this legal action and are not inclusive of all forms and usage, but I make this distinction for purposes of this legal action.
*The required Broker’s “Surety Bond” is not an Insurance instrument, but a collateralized instrument, even though the Federal Government calls the Broker’s License an “Authority” and calls the “Surety Bond” insurance, it is neither. Liability and cargo Insurance is not a requirement to obtain or maintain a “License”. Authority is a grant via the “Commerce Clause” in Section 8 of the Constitution of the United States. The broker receives a License as opposed to an Authority. The License serves Authority and is not provided pursuant to the Commerce clause. The Property Broker is not a “mode” of transportation as defined in Statute. Authority is granted to all “modes”. Modes are not licensed, they have an “Authority”.

|