An In Depth Study Of Freight Broker Bond
The FMCSA requires a Utah freight broker bond for $75,000. As a freight broker, it’s important to maintain a pile of paperwork. Most of it’s linked with obtaining a freight broker license from the Federal Motor Service Safety Administration with the intention to run your freight brokerage legally.
Brokers, freight forwarders and nonvessel operating common carriers, or NVOCC, are required by federal regulation to carry a surety bond within the event they fail to pay the carrier that performs the transfer on the shipments they broker. On Dec. 1, 2013, the $75,000 broker bond went into impact — up from the earlier bond requirement of $10,000.
Freight Broker Bond, An In Depth Look
Surety Bond Associates Most bond agents simply sell bonds, we create them. PayScale: Median wage of $forty one,571. On the low-finish, brokers earn $30,177. On the high finish, they earn round $seventy three,500. Brokers in huge cities, comparable to Dallas, Kansas Metropolis, Houston and Portland, earn higher salaries.
For instance, for those who don’t pay motor carriers in a timely manner, a declare might be made. Study extra about how surety bonds work and how not having a full understanding can put your brokerage at risk Formerly referred to as an ICC bond, the freight broker bond continues to be generally known as a transportation broker bond or property broker bond.
Federal regulation requires sureties to publicly advertise for receipt of claims for a interval of 60 days following publication by the Federal Motor Service Security Administration (“FMCSA”) of cancellation of a bond per the terms of forty nine U.S.C. Sect. 13906.
Broker Bond Request
Broker Authority – acquire via the Federal Motor Provider Security Administration (FMCSA) Complete Form OP-1. This appears flawed to me. The better approach would be to mandate that all funds received from shippers are held in escrow — a belief fund — and then pay these funds to the service. This protects the carrier, the shipper and, finally, the broker as nicely.
When filing for your Broker authority, you might be required to have a Broker surety bond. The requirement is a $seventy five,000 bond. Bond corporations do offer fee plans. The corporate that we use holds are very share of the broker bonds out there and cater to our clients. They’ve two cheap plans which can be inexpensive to our clients. The cost of setting up with the bond is actually cheaper then acquiring trucking insurance for a trucking company.
The Importance Of Freight Broker Bond
One of the provisions of the MAP-21 Freeway Funding Act mandated that the minimal broker surety bond be elevated from $10,000 to $75,000. If you are required to obtain a freight broker bond to perform as a freight broker, you might have the liberty to decide on the surety bond company that best suits your circumstances, so select wisely.