Mark Szakonyi, Associate Editor | Jun 29, 2012 3:10PM EDT
The newly-passed surface transportation bill requires freight brokers and forwarders to have a $75,000 surety bond, a mandate that supporters said will help prevent fraud in the industry.
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.
Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @szakonyi_joc.
