Transportation Intermediaries Association President and CEO Bob Voltmann said the requirement will help prevent “underfunded companies” that have given the industry a “black eye.” TIA backed language in the House and Senate bill versions calling for a $100,000 surety bond requirement, but Voltmann said the slightly smaller bond minimum “is still a significant improvement.”
The Association of Independent Property Brokers and Agents opposed the raising of the surety bond from the existing $10,000 level, saying it would put thousands of small brokers out of business. The $75,000 surety bond requirement mirrors that required of non-vessel operating common carriers.
The transport bill also tightens regulations on brokers, forwarders and trust companies, and it forbids motor carriers from from re-brokering freight without proper broker authority and bond. Customs brokers and air freight forwarders will remain exempt from such changes.