The transportation industry has wide-ranging operational roles and regulatory requirements that often overlap, causing confusion among carriers, brokers and shippers. Two of the most commonly misunderstood concepts in freight logistics are interlining freight and freight brokering. While both involve coordinating the movement of goods, they operate under distinct legal and regulatory frameworks.
Adding to the complexity is the controversial and often misunderstood role of dispatch services, or bona fide agents, which falls into a regulatory gray area that has been the subject of serious debate. While we dive into dispatch services in other articles, the Federal Motor Carrier Safety Administration has issued final guidance clarifying the definitions of brokers and bona fide agents. You can find the agency’s take on it here.
Let’s focus on what differentiates motor carriers’ interlining freight from freight brokers and why industry professionals must understand these distinctions.
Interlining freight refers to a collaborative transportation model in which two or more motor carriers work together to move a shipment from its origin to its final destination. This practice is common when a single carrier cannot complete the delivery due to factors such as:
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Long-distance hauls requiring multiple regional carriers.
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Equipment limitations preventing a carrier from servicing specific lanes.
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Regulatory constraints that restrict a carrier from operating in specific regions or states.
Interlining allows for a more flexible, scalable and efficient transportation process. It ensures goods reach their destination even when a single carrier cannot independently complete the route.
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Shipment transfer: The originating carrier picks up the freight and transports it as far as the carrier is permitted or able. The shipment is handed off to a second carrier at a designated transfer point.
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Shared responsibility: Both carriers ensure the shipment is delivered safely and on time.
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Coordinated logistics: Seamless communication and documentation are essential to track freight movements and minimize delays.
Interlining carriers must comply with FMCSA regulations to ensure legal and operational integrity. These include:
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Operating authority: Each participating carrier must have the appropriate FMCSA motor carrier authority.
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Insurance coverage: Carriers must maintain active liability and cargo insurance to cover their respective portion of the shipment.
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Proper documentation: Bills of lading, transfer records and interline agreements must be properly documented to ensure accountability.
