Brokers

The owner of a freight broker bond company was indicted in U.S. District Court, Los Angeles, Calif. late last month in connection with a trust fund scheme.

The Federal Motor Carrier Safety Administration is looking for comments on requests to exempt brokers and some freight forwarders from the new $75,000 bond requirement.

UPDATED -- Nearly 10% of the nation’s freight brokers no longer have their licenses following new federal regulations that took effect requiring a higher bonding amount, while another source says the number is even higher.

A woman has pleaded guilty to charges in U.S. District Court in Macon, Ga., for her involvement in a double-brokering freight scam. On Nov. 20, Pauline Robinson-Kirkland, of Donalsonville, Ga., admitted to mail fraud. She was indicted in July 2012.

The suit by small property brokers against new bond requirements is back in motion after a federal magistrate lifted a stay, clearing the way for legal arguments over moving the matter to federal appeals court.

As of Oct. 1, all FMCSA-registered freight brokers and forwarders must have proof of a $75,000 surety bond or trust fund. While much has been reported about the FMCSA’s 60-day phase in period, the fact remains you need a $75K bond or trust in place now in order to legally operate.

The transportation law, MAP-21, upped the financial security requirements for freight brokers and forwarders to $75,000. The law offers options for the new financial security requirement, but specifics are not always clear. With the FMCSA deadline approaching in just a week, here is some information on an option for small- to mid-size brokers and for carriers who also act as brokers.

A group representing small property brokers has sued the Federal Motor Carrier Safety Administration to stop the new $75,000 bond requirement scheduled to go into effect Oct. 1, saying large trade groups are trying to eliminate small broker competition.