This bond requirement was originally put in place in the 1930’s to protect shippers who do business with brokers. In the 1970’s the bond requirement was set at $10,000 where it remained until congress passed the “Moving Ahead for Progress in the 21st Century” Act (MAP-21 for short).
We were able to take our strong $10,000 BMC-84 program and use its success to negotiate an incredible $75,000 program that will help prevent those fears from becoming reality.
Some of the Highlights:
Best of all, our online system will provide you with a no obligation instant approval.
Passed on June 29, 2012, and signed by the president on July 6th of the same year, MAP-21 is 599 pages of legislation that includes numerous provisions that directly affect interstate trucking companies and intermediaries.
One of the most talked about provisions is the requirement that freight brokers increase the amount of the bond/trust that they post for their license from $10,000 to $75,000. In addition Freight Forwarders, who were never subject to this requirement, must now also fulfill this $75K requirement. This bond must be in place on October 1, 2013.
The main reason this provision is so talked about is the fear of what this increase could mean to the “Mom & Pop” or midsized brokerage. Will they be forced out? Will bonding company’s requirements for approval be so high they will not qualify? Will they be required to collateralize the bond in an amount that cripples the way they are able to operate?
$25,000 Household Goods Broker Bond Starting January 1, 2012 the FMCSA will require all household goods brokers to submit a $25,000 bond. No license will be issued until this requirement is fulfilled.
Do you have questions about your surety bond?
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