Beginning October 1st, Moving Ahead for Progress in the 21st Century (MAP-21), Section 32915, required “anyone acting as a broker or a freight forwarder and subject to the Federal Motor Carrier Safety Administration (FMCSA) jurisdiction, including motor carriers, to register and obtain broker or freight forwarder authority from FMCSA.” So, whether you are a full-time freight broker, freight forwarder, or just a small trucking company that occasionally brokers out a load or two (with the exception of dealing with an interlining service) the FMCSA now mandates that you have designated broker authority. To receive this authority, brokers and forwarders are required to file a surety bond or trust fund agreement with the Federal Motor Carrier Safety Administration to receive a freight broker’s license.
So, with greater regulation comes greater responsibility — financial responsibility that it. The bond amount also increased from $10,000.00 to $75.000.00.
Why? The primary reason for such a substantial increase is to reduce fraud. With the increase of chameleon carriers, a larger bond amount reduces the likelihood of a fraudulent entity having the capability to apply for or afford a $65,000.00 increase. Also, think of it as a “peace-of-mind-safety-net” for carriers and shippers. With a higher bond, the carrier and shipper have an increased guarantee that the broker or freight forwarder is legitimate. Brokers and forwarders have basically put $75,000.00 on the table and said, “I have the financial surety to guarantee that my business is not engaging in fraudulent activity and our carriers have protection against non-payment or other related issues.”
With all that said, ARPCO has applied and been granted our increased broker bond. However, we do NOT have the required $75,000.00 bond. Instead…
ARPCO Transport is certified for a $100,000.00 bond!
Why did we go above the requirement? Because in twenty-five years as a non-asset freight brokerage company, you know from experience that going above and beyond the requirements is what will give you another successful twenty-five years. We are committed to reliable service and competitive pricing for both our customers and our carriers (who we consider our customers) alike.
The FMCSA created a “phase-in” period for the month of October (2013) to allot sufficient time for all brokers and forwarders to apply or renew their bond for the updated amount. This superseded the original ruling which stated that all brokers and forwarders must have the updated bond by/on October 1st, 2013. At ARPCO, we didn’t lose any time procuring our bond. We received our updated bond mid-September and were able to send out confirmation to all of our customers and carriers that requested proof the bond increase— before it was even required!
That is why ARPCO re-bonded early. We are dedicated to our customers. We fully support our carriers. We have twenty-five years of steadfast service and reliability that holds us to a high standard of business integrity—with or without a surety bond.