The Freight Broker Bond – Why ARPCO Increased Our Bond Early

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.

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Freight Brokers, MAP-21, and Ferris Bueller

“Brokers?… Brokers?… Brokers?…”

Have you ever seen Ferris Bueller’s Day Off? Well, if you have, read the above line again in Ben Stein’s voice and it will make a lot more sense, and garner a chuckle,  if you picture the very bored economics’ classroom scene in the movie (and if you haven’t seen the movie *tsk tsk*  go home, rent it, and watch for a great laugh. “You’re welcome” in advance. THEN, re-read the blog to also be a part of the “cool” chuckling crowd that got it in the first place.)

BenStein_FerrisBuellersDayOf

Anywho, down to business.

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