$75,000 Bond Issue for

Freight Brokers

Freight Broker Bond

The transportation bill was put into effect June 2012, but is still being questioned in the shipping industry.  October 2013, freight broker’s authority was revoked if the security bonds and trust funds were not registered with the FMCSA.  So if you are an experienced broker or a newcomer, you may still wonder why these new rates were extended to freight forwarders as well.

Previously, the minimum was a $10,000 bond or trust fund to be filed as proof of financial responsibility and a guarantee of compliance with regulations.  October 2013, the amount rose to $75,000 and included freight forwarders.

Freight Brokers and forwarders who did not meet these conditions by  Oct 1, 2013 received 30 days notice and were out of business.

A trust fund agreement is obtained through an approved financial institution and the freight broker bonds are handled through a surety agency and excellent programs are available.

Read more on Freight Broker Issues.

Although planned re-authorization of Map-21 has not yet passed,  it’s scheduled  for May 2015, when the Highway Trust Fund (HFT) is expected to become insolvent.

Moving Ahead for Progress in the 21st Century (MAP-21)