Broker Bond Increase Takes Effect in Less than a Week
The Federal Motor Carrier Safety Administration confirms that all regulated brokers and freight forwarders must obtain and file with FMCSA a surety bond or trust fund agreement in the amount of $75,000 by October 1, 2013. The Agency will not be accepting group surety bonds or trust funds to satisfy the financial requirements at this time.
The Agency has announced that it will be delaying enforcement of revocation, but do not misinterpret this to mean there is a phase-in period for the bonding requirement. Even though the agency will not immediately turn off your authority, the free market will. Beginning October 1st, shippers and carriers will not do business with anyone that does not have the $75,000 bond in place.
Additionally, on October 1st, any broker or freight forwarder that does not have the $75,000 bond in place and is doing business will be subject to a $10,000 fine for unlawful brokerage activities, as pursuant to Section 32919 of MAP-21.
