If you’re planning to move, you’ve probably come across two types of services: moving company brokers and carriers. Knowing the difference between them can make a big difference in how smooth your moving experience will be. In this article, we’ll break down what each one does, how they operate, and how to decide which one is right for your move.
What Are Moving Company Brokers?
A moving company broker acts as an intermediary between customers and moving companies (also known as carriers). Unlike carriers, brokers do not own trucks or employ movers directly. Instead, their primary role is to match customers with a suitable moving carrier to handle the actual relocation. You can think of them as the “matchmakers” of the moving industry. Brokers handle the reservation of your move and then pass the job to a third-party carrier, ensuring the service aligns with your needs and budget.
Here’s how the process typically works: When you contact a moving broker, you provide key details about your move, such as your origin, destination, and the volume of your belongings. The broker then identifies a carrier capable of managing your move and provides you with a price estimate. If you accept the offer, the broker books the job, collecting a deposit, which serves as their revenue. The remaining payment is handled by the moving carrier, who collects it during the actual move.
One potential issue with moving brokers is that some present themselves as a “moving company,” which can create confusion for consumers who may not fully understand the difference between brokers and carriers.
A more significant concern arises from the numerous complaints regarding brokers. Many reports indicate that the carriers they hire often raise the final price beyond the initial estimate. In some cases, carriers have been known to hold customers’ goods until additional payments are made.
How is this possible? Often, there’s a clause in the broker’s agreement that permits such practices. It is important for consumers to be aware of these potential issues and thoroughly review the terms before committing.
Key Consideration: Brokers have no direct control over the moving process, which means the quality of service depends on the carrier they select. Some brokers may promote themselves as moving companies, creating confusion for consumers.
What is a Carrier?
A carrier, on the other hand, is the actual moving company that owns trucks and employs movers. These are the people who come to your house, pack up your belongings (if you’ve paid for packing services), load everything into the truck, and drive it to your new location. Once there, they’ll unload your things and may even help you unpack, depending on the services you choose.
Carriers are responsible for doing the physical work of your move. When you hire a carrier, you are dealing directly with the company that will handle your items. This can be helpful because you’re in direct contact with the people who are managing your move every step of the way.
Licensing Requirements for Moving Carriers:
To operate legally, moving carriers must comply with specific licensing and regulatory requirements, which vary depending on whether they handle local, interstate, or international moves:
- Local Moves (Intrastate Moves):
- Moving carriers that operate within a single state are typically regulated by state agencies. The requirements for licensing and insurance can vary by state.
- Many states require local moving carriers to hold a state-issued license or permit, and they must carry liability insurance to protect against potential damage or loss.
- Interstate Moves:
- Carriers that move goods across state lines must be licensed by the Federal Motor Carrier Safety Administration (FMCSA). This involves obtaining a U.S. DOT number and a Motor Carrier (MC) number, both of which serve as proof of compliance with federal regulations.
- The FMCSA requires interstate carriers to maintain specific levels of insurance, including:
- Liability insurance (to cover damages caused to third parties during the move).
- Cargo insurance (to cover any loss or damage to the customer’s belongings).
- Carriers are also required to follow FMCSA guidelines regarding safety, driver qualifications, and hours of service.
- International Moves:
- Moving carriers handling international relocations must comply with customs and international shipping regulations. Many international carriers are members of organizations such as the International Association of Movers (IAM) or the FIDI Global Alliance, which help ensure quality and compliance with global standards.
To verify a moving carrier’s licensing status, customers can check the FMCSA‘s database using the company’s U.S. DOT or MC number. This helps ensure the carrier is legitimate and compliant with safety and insurance requirements.
Key Consideration: Carriers have full control over the entire moving process, making them directly responsible for the safety and timing of the relocation.
How Do Moving Brokers and Carriers Differ?
Now that you know what a moving broker and a carrier are, let’s take a closer look at how they differ:
- Ownership and Services: Moving brokers don’t own trucks or moving equipment, whereas carriers do. The broker’s role is to organize your move and find a carrier to do the work.
- Direct Communication: With a carrier, you’re working directly with the moving company. With a broker, you’ll talk to the broker who arranges everything with the carrier for you. Some people prefer working with carriers directly because there’s less middle communication, more transparency, and less risk.
- Pricing: Brokers can sometimes provide what seems like “good deals.” However, this doesn’t always mean you’ll get the best service, as the broker may prioritize price over quality. Brokers are also known for participating in “bait and switch” tactics, so be careful. Carriers usually offer more transparent pricing since you’re working directly with them.
- Licensing: The key difference in licensing between a moving broker and a carrier is that brokers must be registered with the FMCSA and have a U.S. DOT number but do not require a Motor Carrier (MC) number or cargo insurance since they don’t physically move goods. In contrast, carriers must have both a U.S. DOT number and an MC number, and they are required to carry liability and cargo insurance, as they are directly responsible for transporting and handling the customer’s belongings. Carriers also face additional state and local licensing for intrastate moves.
- Control: Carriers are responsible for the move’s quality and safety, whereas brokers only facilitate the connection.
Pros and Cons of Moving Company Brokers
When deciding whether to use a moving company broker, it’s important to understand the benefits and drawbacks they offer. Here’s a quick look at the pros and cons to help you decide if working with a broker is the right choice for your move.
Pros of Moving Company Brokers
- Convenience: Brokers do all the work of finding a carrier for you.
- More Options: Brokers work with multiple carriers, which means you have access to a variety of moving companies.
Cons of Moving Company Brokers
- Less Control: Since you’re not dealing directly with the carrier, you may have less say in how things are handled during the move.
- Service Quality: The broker might prioritize cost over quality, meaning you could end up with a carrier that doesn’t provide the best service.
- Hidden Fees: Sometimes, brokers give an estimate that doesn’t include all the fees, leading to surprise charges later on.
Pros and Cons of Carriers
Choosing to work directly with a moving carrier comes with its own set of advantages and challenges. Let’s explore the pros and cons of hiring a carrier so you can make an informed decision about the best way to handle your move.
Pros of Carriers
- Direct Contact: You communicate directly with the company handling your move, which can make things smoother if you have specific needs.
- Transparent Pricing: Since you’re dealing directly with the moving company, the pricing is usually clearer and may include all fees upfront.
- Accountability: Carriers are responsible for your belongings, so you know who to contact if something goes wrong.
Cons of Carriers
- Limited Availability: If you’re moving during a busy season, you may struggle to find a carrier that’s available when you need them.
- Higher Prices: Some carriers may charge more than brokers because they don’t compete as aggressively on price and are transparent of their pricing.
How to Choose the Right Option for Your Move
Whether you go with a moving company broker or a carrier depends on what matters most to you.
If you’re someone who values convenience and doesn’t want to spend a lot of time researching different moving companies, a broker might be the right choice.
However, if you prefer having direct communication with the people who are handling your belongings, and value quality, you might be better off going straight to a carrier. You’ll have more control over the moving process, and you can be sure the company you hire will meet your expectations.
Conclusion
In summary, a moving broker acts as a middleman, connecting customers with moving companies, while a moving carrier directly handles the physical move. Brokers facilitate the process but don’t own trucks or employ movers, and they aren’t responsible for your belongings once a carrier takes over. Carriers, on the other hand, are fully licensed, insured, and accountable for the safety and transportation of your goods.
While brokers can be helpful for finding a carrier, working directly with a moving carrier is often the recommended choice. Carriers provide greater transparency, have more control over the move, and are directly responsible for handling your belongings, offering a smoother and more reliable moving experience.
