Freight Broker Bond to increase from $10,000 to $75,000 on October 1, 2013

As part of the new highway bill, also known as MAP-21, which was designed to boost highway safety and organize highway funding, there is a new amendment increasing the freight broker bond requirement from $10,000 to $75,000. The new law, scheduled to take effect in October 2013, means that every freight broker will be required to provide proof of their $75,000 broker bond/trust in order to sustain their status as a licensed broker/forwarder.
The federal government hopes MAP-21 will decrease the occurrences of fraud in the industry. “The freight broker bond increase to $75,000 is expected to discourage fly-by-nights from entering the freight broker arena and hopefully protect both shippers and motor carriers from non-payment or delayed payment.” (JW Surety Bonds)