Auto Transport Carriers and Auto Transport Brokers - What’s the Difference?

The Difference Between Auto Transport Brokers & Carriers

Hiring an auto transport company requires some due diligence and an understanding of the industry's workings before deciding. The process can be daunting if you don’t know where to start or where to get accurate information. This article will cover the basics and the role that shippers, carriers, and brokers play in transporting a vehicle.

One of the most important aspects of understanding the difference (and occasionally, the overlap) between an auto transport broker and a carrier is knowing the role that they both play in the industry.

What Is An Auto Transport Broker?

Auto transport brokers don’t have their own transport carriers and typically are not the companies that transport vehicles. Brokers facilitate auto transportation by connecting customers with carriers that offer the specific services requested. Brokers are also known as non-asset-based carriers, intermediaries, or third-party logistics providers.

The advantage of using a broker instead of a carrier is that you have more options because of their existing network of auto carriers. If you deal directly with an auto transport carrier, they may not have the necessary equipment or the necessary licensing in all the states through which your vehicle is transported. A broker does the leg work of finding a carrier that meets these criteria and can sometimes get a more competitive rate by creating competition between carriers on behalf of the customer.

The downside to dealing with a broker is that some questionable companies are in the industry. Auto transport is a multibillion-dollar industry, and technology, specifically the internet, has created a low barrier to entry into the business, which has led to some unethical practices. The Consumer Advisory about Auto Transporters has indicated a drastic increase in complaints against auto transport companies in recent years due to these practices.

What Is An Auto Transport Carrier?

An auto transport carrier is the company that owns the trucks and employs the workers who transport a vehicle.

One benefit of using a carrier is that you are dealing directly with the company (and maybe even the person) transporting your vehicle, eliminating the “middleman.”

It’s important to remember that some carriers may not be able to transport an auto in certain areas since licensing and legal requirements differ from state to state. Dealing strictly with a carrier can sometimes limit your options in terms of availability, transport method, and delivery time. Dealing directly with a carrier can also mean a higher cost because of the lack of competing bids for the service.

Companies That Are Brokers and Carriers

Some auto transport companies operate as both brokers and carriers. These companies can transport vehicles and broker a deal between a customer and a carrier if no carrier is available to handle the job.

How To Determine If A Company Is A Broker Or Carrier?

The Protect Your Move website offers information about brokers and carriers directly from the Federal Motor Carrier Safety Administration, which is the organization that oversees the auto shipping industry. At the FMCSA site, you can research specific companies by state, motor carrier license number, and U.S. Department of Transportation number.

You can also see if a company is a broker, carrier, or both and whether it is active or inactive, which indicates whether it is in compliance with current insurance regulations.

Broker & Carrier Resources

What Is A Load Board? Both carriers and brokers use a “load board” to help their business partners with the appropriate entities to get a shipment delivered as planned. This blog post explains the details of how it’s used.

Explanation of Auto Transport Brokers—While we covered the basics of what a car shipping broker does, this Wikipedia article explains it in more detail and includes information about licensing and regulation.