Freight Brokers Willing to Raise Bond to $100,000 With Tighter Regs

January 21, 2010

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The Transportation Intermediaries Association is trying to negotiate a deal that would boost the bond required of brokers from $10,000 to $100,000 while strengthening regulation of the licensing system
, according to reports by the Journal of Commerce.

The move aims at easing relations with trucking companies that are pushing Congress to pass stricter financial regulations on freight brokers, the JOC says.

The TIA seeks tougher regulations for bonding companies, including the way these companies collect and pay out claims, the JOC reports.

The move would also put some trucking groups at ease, such as the Owner-Operator Independent Drivers Association, which has had problems with not getting payments from shippers due to the financial health of the broker, according to the JOC. With the new requirement, trucking groups would have less of a need to look into the financial health of their broker.

The JOC says the TIA is currently taking the plan to the House of Representatives.

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